“Net-net, as John just mentioned, we have -- we are expecting more variation in agricultural than industrials, notwithstanding recent actions, we will manage through it.”

In context

“he recent tariffs also on aluminum and steel. James Quincey: Clearly, there's -- it's a dynamic macro environment out there. As as commodities change for whatever reason, up or down, obviously, we -- our number one objective is to look at how we mitigate through that. And whether it's the recent aluminum tariffs or any other tariff based or frankly, weather-based or any other variation in the input commodities, we do a number of things. One, we have hedging programs in place that look to assure supply and price going out. Secondly, as the relative prices of different sources of ingredients, and imports change, of course, we look at mitigation, productivity, efficiency, adjusting where we get our materials from. All of that goes into the equation to constantly manage how this goes through. Net-net, as John just mentioned, we have -- we are expecting more variation in agricultural than industrials, notwithstanding recent actions, we will manage through it. As you said, we are predominantly a local business when it comes to making each of the beverages. The vast majority of everything that's consumed in the U.S. is made in the U.S. Similarly, we've merged every country around the world. And so while it's a global business, it's very local. So yes, every bottler will be importing something from somewhere as a piece of the puzzle, but the economics are more predominantly local than they are global. And so it's a piece of the puzzle we need to manage through. As John said, we have that, we believe, on the under control from a point of view of sustaining gross margin. No doubt the environment will continue to be dynamic, but we will continue to manage and mitigate and adjust and be agile and flexible our way through the year. John Murphy: And ju”