Tariffs become a new front line in the cola war between Coke and Pepsi

The age-old adage Coke or Pepsi is resurfacing in a bit of an unexpected place

The Trump tariff plan is affecting both cola juggernauts, but seemingly one more than the other

The Wall Street Journal is reporting that the specific taste of Coca-Cola or Pepsi

all comes down to the concentrate, the secret ingredients that each uses to make its signature

soda. That concentrate is then sent to bottling plants, which add the water, the fizz, and the

sweetener to make the finished product. In Pepsi's case, low corporate taxes led it to make the

concentrate in Ireland more than 50 years ago. The company also recently invested nearly $190

million in manufacturing facilities there. However, the Journal reports that concentrate, including on both Pepsi and Mountain Dew, is now subject to a 10 percent tariff when it comes into

the United States. Coca-Cola, meanwhile, makes most of its concentrate in Atlanta and Puerto Rico

As a result, its Coke products, including Sprite, will avoid the tariffs. ysts such as HSBC's

Carlos Laboy say Pepsi is clearly at a disadvantage that it could not have seen coming

Then there are aluminum cans. Coca-Cola imports some aluminum from Canada, which is facing a 25

Trump tariff. The company has warned that the cost of cans of pop could rise and that packaging

might shift more toward plastic bottles. Pepsi recently dropped to America's number three soda

unseated in the number two slot by Dr. Pepper, which is neither a Coke nor Pepsi product. For

now, PepsiCo has refused to comment on what steps it might take to deal with the tariffs

and the effect it will have on consumers. However, independent bottlers think tariffs

on concentrate could increase their costs and make them part of the trade war

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