A follow-up informal survey of US soda bottlers finds a cautiously improved mood on fuel costs and deepening concern about aluminum costs since an earlier survey in May. BD reached out to bottlers amid the elevated US inflation rate and the uncertainty of a war with Iran, which drove up global oil prices. Several operators across the Coca-Cola, PepsiCo, and Keurig Dr Pepper bottling systems now say...

Rising fuel and aluminum prices against the uncertainty of a war in Iran and the highest annual inflation rate since May 2023 have caused increasing angst among US beverage bottlers and distributors. BD informally surveyed executives across the Coca-Cola, PepsiCo, Keurig Dr Pepper, and independent beverage distribution systems during the past week to find out what cost and profit margin pressures they face now, and what additional pressure they expect. The bottlers also discussed concerns about the revenue side of their P&Ls as consumers look for ways to better afford high grocery and gas prices. During the first-quarter earnings cycle in recent weeks, Coke, PepsiCo, Keurig Dr Pepper, Celsius Holdings, and Monster Beverage all addressed current and anticipated commodity inflation pressure this year, while adding that the costs are mostly manageable so far. “We expect beverage companies will feel margin pressure in 2026, with likely pricing actions in 2027,” RBC Capital Markets Beverage Analyst Nik Modi wrote in a May 7 research note, citing higher costs for aluminum and fuel. Much of the pressure is falling on distributors who own and fuel the trucks that move beverages and buy the aluminum cans that drinks are packaged in. One bottler called it a “perfect storm” of cost pressures. The following is a summary of responses and key themes that emerged from more than a dozen discussions: