One of the nation’s largest brewers says it expects tariffs on the aluminum used in its cans to dent its profits this year.
Molson Coors said in its latest financial results that an 8.1% jump in its average cost of goods sold in the quarter, in part, reflected increases in the U.S. Midwest aluminum premium, and noted that commodity inflation would continue to affect profitability this year. Company officials estimated at an industry conference Wednesday that aluminum costs would impact profit by about $125 million, Reuters reported.
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Prices for aluminum in the U.S. soared to record highs earlier this year amid a supply crunch and the effects of tariffs imposed last year by the Trump administration. Tariffs on imported aluminum were doubled in June, although a report this month indicated that the White House was considering rolling back some metals tariffs.
The nation’s no. 2 brewery, which makes Miller Lite, Peroni, Vizzy hard seltzer and many other brands in addition to its flagship labels, said although it expects sales to be roughly flat this year, its adjusted earnings per share are slated to decline by between 11% and 15%.
Aluminum prices, however, are one of several factors impacting Molson Coors and brewers in general, including sluggish consumer spending and a broader shift in attitudes toward alcohol. Molson Coors’ net sales were down 4.8% last year compared to 2024, and the company posted a net loss of $2.1 billion for the year.
Rahul Goyal, who became the brewer’s new CEO last year, said that the company made "necessary difficult decisions … to course-correct and set ourselves up for the future.”
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