Trump's Cane Sugar Announcement Sinks ADM, Ingredion Stocks by 6%, 7%

President Donald Trump's social media post announcing that Coca-Cola executives had agreed to use real cane sugar for products in the U.S. sent ripples through the market, particularly affecting companies that manufacture high fructose corn syrup. The post, made on Wednesday, suggested that Coca-Cola had agreed to Trump's proposal to switch from high-fructose corn syrup to cane sugar in its flagship soft drink. This news led to a significant drop in the share prices of major high-fructose corn syrup producers, including Archer-Daniels-Midland (ADM) and Ingredion.

Share prices of ADM and Ingredion dropped by 6% and 7%, respectively, between Wednesday and Thursday. When the market opened on Thursday, both companies’ share prices had recovered from the off-hours lows but remained below the previous day’s closing price. ADM saw its stock down 2% at the time of publication, while Ingredion sank as much as 4% in the earliest trading hours. Trump announced the decision about which sweetener Coca-Cola would use in a social media post on Wednesday about 10 minutes before the market closed. The president said he’d been in touch with executives at Coca-Cola about the matter.

“I’d like to thank all of those in authority at Coca-Cola,” Trump wrote. “This will be a very good move by them—You’ll see. It’s just better!” Coca-Cola did not commit to whether the decision had been fully agreed to. “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand,” the company told several media outlets. “More details on new innovative offerings within our Coca-Cola product range will be shared soon.”

Despite the lack of official confirmation from Coca-Cola, the market reacted swiftly to Trump's announcement. The two companies create various ingredients for food companies and have had tumultuous stock performances in the aftermath of Trump’s April tariff announcement. ADM is one of the largest agricultural companies in the U.S., with a diverse set of businesses spanning the industry like human and animal food products, agricultural processing units, and a commodities trading desk. Ingredion is a more specialized company that focuses specifically on ingredients like sweeteners, flours, and starches that go into food products. High fructose corn syrup accounts for roughly 8% of Ingredion’s total sales. In 2024, Ingredion had $7.4 billion in net sales. Based on Morningstar’s calculations, high fructose corn syrup would amount to roughly $594 million in sales.

The impact on high-fructose corn syrup producers is likely to be significant. These companies rely heavily on contracts with major beverage manufacturers, and a shift away from high-fructose corn syrup could lead to a decrease in demand for their products. This could force these companies to diversify their product offerings or seek new markets for their high-fructose corn syrup. The news also highlights the influence that political figures can have on market dynamics. Trump's endorsement of cane sugar over high-fructose corn syrup could be seen as a victory for health-conscious consumers who have long advocated for the use of more natural sweeteners. However, it also raises questions about the role of government intervention in the food and beverage industry.

In summary, Trump's announcement that Coca-Cola would switch to cane sugar in its U.S. products had an immediate and negative impact on the share prices of high-fructose corn syrup producers. The market reaction underscores the sensitivity of these companies to changes in demand and the potential for political influence to shape industry trends. As the situation develops, it will be important for investors and industry stakeholders to monitor any official statements from Coca-Cola and the broader implications for the high-fructose corn syrup market.