CocaCola to Switch to Cane Sugar in US
Former President Donald Trump announced on Wednesday that Coca-Cola will begin using real cane sugar in its U.S. products starting next year. However, the beverage giant has not confirmed this claim in exact terms.
I have been talking to Coca-Cola about putting REAL Cane Sugar into Coke in the United States, and they have agreed to do it. I'd like to thank all the people in charge at Coca-Cola," Trump posted on Truth Social. "This will be a very good decision by them. You'll see. It's just better!
Although Trump seems assertive on phasing out high-fructose corn syrup (HFCS) and adopting cane sugar, Coca-Cola's reaction did not explicitly support his statement. In a response to LiveMint, the company stated: "We value President Trump's interest in our signature Coca-Cola brand. Further information on new innovative products in our Coca-Cola product line will be forthcoming."
If Coca-Cola's HFCS were to be substituted with cane sugar, its analysts estimate the transition would cost it anywhere from $800 million to $900 million every year.
This sharp rise is because cane sugar is more expensive in the U.S., subject to agricultural subsidies and import tariffs on sugar. Based on USDA data, the average differential between HFCS and refined cane sugar is about $0.30 per pound.
With Coca-Cola alone selling around 3 billion gallons of beverages per year in the United States—each bearing approximately 0.9 pounds of HFCS, that amounts to around 2.7 billion pounds of sweetener consumed each year. A change over to cane sugar might be an extra $810 million in annual ingredient expenditures alone.
In particular, Coca-Cola currently markets cane sugar-sweetened products in certain markets. The well-known 'Mexican Coke' using cane sugar is available in the U.S. and is popular among many consumers for its unique taste.
The company also markets a Kosher-for-Passover Coca-Cola, produced with cane sugar rather than corn syrup. It is generally packaged in yellow-capped bottles and appeals to Jewish consumers who practice Passover avoidance of corn.
