Coca-Cola Wants More Done on Aluminum Waits as Costs High
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The London Metal Exchange hasn’t done enough to reduce the time it takes to withdraw aluminum from warehouses, said William Hovis, who helps oversee Coca-Cola Co.’s purchases of the metal.
Hovis, chief procurement officer at the company’s bottling investment group, echoed concerns from other aluminum buyers such as MillerCoors LLC after lengthy wait times at LME storage facilities led to inflated rent charges. The surcharge added to the price of metal for immediate delivery on the LME, known as the premium, is a “significant cost” for the world’s biggest beverage company, according to Hovis. Coca-Cola supports the LME’s proposal to limit rents at some warehouses, he said.