Latest news with #aluminumtariffs
The Independent
12 hours ago
- Business
- The Independent
AriZona Iced Tea is considering raising its prices for the first time in almost 30 years
AriZona Iced Tea is considering raising the price of its signature "Big Cans" for the first time in nearly 30 years. The potential price increase is a direct result of Donald Trump 's 50 percent tariff on aluminum imports. Co-founder Don Vultaggio expressed strong reluctance to abandon the $0.99 price point, which has been maintained since 1997, emphasizing customer loyalty. The company imports 20 percent of its aluminum from Canada, and the tariffs are expected to drive up costs for both imported and domestic materials. Industry groups and political figures have criticized the tariffs, warning of their detrimental impact on American manufacturers and consumers.
Yahoo
04-07-2025
- Business
- Yahoo
Tariffs Hit Hard: Constellation Brands Faces $20M Blow
Constellation Brands (NYSE:STZ) is bracing for a $20 million hit over the next three quarters, driven by aluminum tariffs tied to President Trump's 50% duty on imported cans. The added cost won't show up in Q1 results, which ended May 31, but CFO Garth Hankinson confirmed it'll start chipping away at margins starting this quarterabout 20 basis points, to be exact. Since most of the company's beer is packaged in aluminum, and not exempt like other alcohol imports from Mexico, the financial impact looks tough to fully offset. Warning! GuruFocus has detected 3 Warning Sign with STZ. The tariff pain comes at a time when beer demand isn't doing any favors either. CEO Bill Newlands told investors that while overall interest in beer hasn't faded, the number of social occasions where people actually drink it hasboth at restaurants and at home. That shift, paired with rising input costs, could pressure the company's largest earnings engine: its beer business. It's a double-whammy of softer volumes and higher costs, which could make profitability a lot harder to defend going forward. And yet, investors didn't flinch. Shares climbed 4.7% at 12.59pm, trimming the year's losses to around 33%. The move suggests the market may have already priced in the bad newsor is betting management can absorb the blow without derailing the broader strategy. But with margins thinning and demand dynamics evolving, this could be a space to watch closely in the second half of the fiscal year. This article first appeared on GuruFocus.
