Coca-Cola Agrees to Switch to Cane Sugar in US Amid Trump's Push

President Trump has reportedly pushed for Coca-Cola to switch from high-fructose corn sugar to real cane sugar in the US, potentially affecting the soda industry. Coca-Cola has not confirmed the change, and corn syrup producers have seen their shares decline. The move could cost the US thousands of jobs and hurt farms' income, with no nutritional benefit.

President Donald Trump has reportedly pushed for Coca-Cola to switch from high-fructose corn syrup to real cane sugar in the U.S., potentially affecting the soda industry. Coca-Cola has not confirmed the change, but corn syrup producers have seen their shares decline. The move could cost the U.S. thousands of jobs and hurt farms' income, with no nutritional benefit.

Coca-Cola Co (KO) is exploring a strategic shift in its U.S. beverage formula by replacing high-fructose corn syrup with cane sugar. This potential move could ripple through the U.S. supply chain, presenting challenges for corn farmers and possibly altering demand dynamics. The transformation might impose a financial burden on Coca-Cola, with anticipated costs surpassing $1 billion due to necessary supply chain modifications [1].

Wall Street analysts forecast a promising upside potential of 10.37% in Coca-Cola's stock, with a price target of $77.91. Projections range between a high of $86.00 and a low of $59.60. Brokerage firms show a strong consensus with an "Outperform" rating for Coca-Cola Co (KO, Financial), as 29 firms contribute to an average recommendation of 1.9 [1].

The corn refiners warn of economic fallout with no health benefits. According to USDA, high-fructose corn syrup demand adds anywhere from 5 cents to 15 cents to the per-bushel price of corn, depending on market conditions. John Bode, president and CEO of the Corn Refiners Association, responded with a statement about soda reformulations. "Replacing high fructose corn syrup with cane sugar doesn't make sense. President Trump stands for American manufacturing jobs, American farmers, and reducing the trade deficit. 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" [2].

Agricultural economists and industry leaders are pushing back against President Trump’s proposal. U.S. corn producers are sounding the alarm on President Trump’s efforts to switch Coca-Cola products away from using corn syrup in favor of cane sugar. Corn syrup production in the U.S. accounts for 410 million bushels of the country’s 15.5 billion bushels of corn, making up less than 3% of the total industry’s total. The company making the switch to cane sugar wouldn’t have an outsized impact on the industry as a whole [3].

The largest impact of the proposed switch, however, is the symbolic impact of the growing influence of the controversial "Make America Healthy Again" (MAHA) movement, which advocates for reducing ultra-processed sugars contributing to childhood chronic diseases.

References:
[1] https://www.gurufocus.com/news/2986859/cocacola-ko-considers-cane-sugar-switch-us-corn-farmers-at-risk
[2] https://www.dtnpf.com/agriculture/web/ag/blogs/ag-policy-blog/blog-post/2025/07/17/trump-sparks-coca-cola-soda-debate-v
[3] https://fortune.com/2025/07/17/trump-cane-sugar-coke-agriculture-jobs-corn-lobby/