U.S. President Donald Trump said on his Truth Social (DJT) account yesterday that he has discussed with Coca-Cola (KO) using “real cane sugar in Coke in the U.S.” and thanked the team for considering his suggestion, saying, “You’ll see. It’s just better!” However, Coca-Cola appears hesitant to fully accept or reject the proposal after the president’s bold public statement about the change.
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Coca-Cola has used corn syrup as a sweetener in the U.S. for decades, but uses cane sugar in other countries, including Mexico, The UK, and Australia. Following the news, KO stock was little affected, while shares of Archer-Daniels-Midland (ADM) fell 6.1% in after-hours trading. ADM produces the high-fructose corn syrup that Coca-Cola has used for years to sweeten its signature soft drink.
Coca-Cola Remains Hesitant About the Change
Responding to the president’s post, a Coca-Cola spokesperson said they appreciate his enthusiasm for the iconic Coca-Cola brand but did not confirm any changes in its formulation. The spokesperson added that the company will announce details of new innovative offerings within the Coca-Cola product range soon.
Such a drastic change would also significantly impact America’s corn-producing farmers. Commenting on the news, John Bode, chief executive of the Corn Refiners Association, said, “Replacing high fructose corn syrup with cane sugar would cost thousands of American food manufacturing jobs, depress farm income and boost imports of foreign sugar, all with no nutritional benefit.”
The Trump administration has been pushing the Make America Healthy Again movement. U.S. Health Secretary Robert F. Kennedy Jr. has been urging companies to alter their food formulations to remove processed ingredients such as artificial colors and seed oils. Kennedy is concerned about the high amount of sugar consumed in the American diet and advises people to “eat whole food.”
Is KO Stock a Good Buy Ahead of Q2 Earnings?
Coca-Cola is scheduled to release its second-quarter fiscal 2025 results before the market opens on July 22. The Street expects KO to report adjusted earnings per share of $0.83 on sales of $12.54 billion.
Ahead of the results, Wall Street remains highly optimistic about Coca-Cola’s long-term outlook. On TipRanks, KO stock has a Strong Buy consensus rating based on 15 Buys and one Hold rating. Also, the average Coca-Cola price target of $79.50 implies 14.8% upside potential from current levels. Year-to-date, KO stock has gained 12.9%.
