Coca-Cola announced on Tuesday that it will introduce a cane-sugar version of its iconic cola in the U.S. this fall, following a suggestion from President Donald Trump. Trump indicated via social media last week that the beverage giant had agreed to switch from high fructose corn syrup, a sweetener used in its flagship cola since the 1980s, to real cane sugar. Although the company did not immediately verify this change, it has now confirmed it will expand its product offerings to meet evolving consumer preferences.
Coca-Cola Chairman and CEO James Quincey expressed appreciation for the president’s enthusiasm and stated that the company is committed to exploring a variety of sweetening options. Quincey noted that Coke already utilizes cane sugar in some of its other U.S. products, such as Simply lemonade and Honest Tea, and mentioned the popularity of Mexican Coke, which has been available in the U.S. since 2005.
The push towards innovation is part of Coca-Cola’s ongoing effort to align with consumer tastes, particularly as rivals like PepsiCo and Dr Pepper have successfully offered cane sugar versions of their colas since 2009. Quincey also hinted at potential future developments, including the possibility of creating a prebiotic cola, similar to a recent product launch by PepsiCo.
Coca-Cola’s recent performance showed signs of recovery, with improved demand in several markets, including North America, Europe, Africa, and China, despite challenges posed by early monsoons and regional conflicts affecting sales in India, Thailand, and Indonesia. The company reported a 1% decline in global case volumes, although it saw a 14% increase in the volume of Coca-Cola Zero Sugar, suggesting a growing consumer preference for zero-calorie options.
In terms of financials, Coca-Cola reported a better-than-expected second-quarter earnings, with a 58% increase in net income to $3.8 billion, buoyed by a 6% rise in pricing globally. Revenue slightly rose to $12.5 billion, aligning with Wall Street predictions. The company’s adjusted earnings outlook for the year has also been revised to expect an 8% growth.
Overall, Coca-Cola’s strategy to reintroduce cane sugar aligns with market trends and consumer interests, reflecting a positive outlook as the company maneuvers through a competitive landscape and changing consumer demands.