Soft Drink Manufacturers NAICS 312111

Apr 21, 2026 - Iran War Driving Up Aluminum Prices

• The Iran war is straining aluminum supplies, with companies that buy aluminum to make soda cans feeling the sting of higher prices, The Wall Street Journal reports. Prices have surged due to a combination of high US tariffs on imported aluminum and supply disruptions from the war, which has curtailed shipments and damaged key Middle East production facilities, according to WSJ. With aluminum prices up sharply, soft drink manufacturers are facing higher packaging costs (a major expense for beverages), limited ability to avoid price increases, as aluminum is globally priced, and potential margin compression or the need to pass costs to consumers. Low US aluminum inventories and reduced imports are expected to keep prices elevated, prolonging cost pressure. Overall, soft drink manufacturers are dealing with sustained packaging cost inflation and supply uncertainty, which could lead to higher retail prices and pressure on profitability.
• Antitrust regulators alleged in a recently unsealed lawsuit that PepsiCo worked to keep its soda prices higher at many stores to protect Walmart’s lower prices, The Wall Street Journal reports. The lawsuit described PepsiCo’s efforts to favor Walmart, which accounted for 14% of its net revenue in 2024, as a long-term practice. The FTC made the allegations in a filing in a federal court in New York City during the final days of the Biden administration that was later dismissed by the Trump administration. Still, the case highlights growing federal scrutiny of price discrimination and promotional allowances, indicating that manufacturers may face tighter oversight of how they negotiate with major retailers. If regulators push for stricter compliance with the Robinson‑Patman Act, which forbids suppliers from selling goods at different prices to retailers, producers could lose flexibility in offering customized discounts, promotional funding, or volume‑based deals to large chains.

• Sales of so-called "modern soda" rose 83% from 2023 to 2024, from $983 million to $1.8 billion, according to market research firm Circana. Modern refers to newer carbonated soft drink brands like Poppi (acquired by PepsiCo in May for $1.95 billion) and Olipop that appeal to consumers looking for an alternative to legacy soft drinks. “Products in this newly defined modern soda category share carbonation and some flavor profiles with traditional sodas, but they’re distinct in several ways,” explains Circana’s Daniel Joyner, adding “These beverages are typically sweetened with stevia, cane sugar or real juice, and often marketed on digestive, functional benefits, or better-for-you attributes.” In terms of market share, Circana lists the brands as follows: poppi (38%), Olipop (32.7%), Zevia (12.1%), Jarritos (10.3%), Fever Tree (4%) with all others accounting for 2.9%.
• Producer prices for soft drink manufacturers rose 6.1% in February compared to a year ago, after rising 1.1% in the previous February-versus-February annual comparison, according to the latest US Bureau of Labor Statistics data. Prices soft drink manufacturers charge for their products have been rising steadily since mid-2021 to record high levels. The 50% tariff on imported aluminum used for soda cans is driving up costs for producers and, ultimately, consumers. In February, retail prices for carbonated drinks rose 4.8% year over year and 1% versus January, per the Labor Department’s February 2026 Consumer Price Index. Meanwhile, employment by soft drink manufacturers remains flat.