Donald Trump’s push to replace high-fructose corn syrup with cane sugar in Coca-Cola has sparked warnings of thousands of American job losses and sent corn processor stocks tumbling, wiping nearly £1.5 billion off investor value in pre-market trading.
The president announced via Truth Social on Wednesday that he had been negotiating with Coca-Cola executives to use “REAL Cane Sugar” in the US version of their flagship drink, claiming the company had agreed to his proposal.
However, the soft drinks giant stopped short of confirming Trump’s announcement, stating only that it appreciated the president’s “enthusiasm” and would share “more details on new innovative offerings” soon.
Economic Warnings Mount
Corn Refiners Association CEO John Bode released a scathing statement on Thursday, warning the recipe change could devastate American manufacturing and agriculture.
“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,” Bode said.
The industry leader argued the move contradicted Trump’s own economic agenda: “President Trump stands for American manufacturing jobs, American farmers, and reducing the trade deficit.
Stock Market Turmoil
Trump’s announcement triggered immediate chaos on Wall Street, with shares in leading corn processors plummeting in pre-market trading on Thursday.
Archer Daniels Midland, one of America’s largest agricultural companies, saw its stock drop almost six per cent in early trading, representing a potential loss of approximately $1.5 billion in market value.
Another major corn refiner, Ingredion, suffered an even steeper decline, with shares falling nearly seven per cent before markets opened. Both stocks partially recovered during regular trading but remained significantly below Wednesday’s closing prices.
Presidential Pressure Campaign
Trump, who famously installed a red Diet Coke button on his Oval Office desk, claimed in his Truth Social post that Coca-Cola executives had capitulated to his demands.
I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,” Trump wrote. “This will be a very good move by them — You’ll see. It’s just better!”
The president’s announcement came just ten minutes before markets closed on Wednesday, maximising its impact on after-hours trading.
Political Backlash
California Governor Gavin Newsom seized on Trump’s Coke negotiations to attack the president over his failure to release the Epstein files as promised.
“Oh thank god! I’ve totally forgotten about the Epstein files now!” Newsom posted on X, sharing a screenshot of Trump’s Truth Social announcement.
The Democrat governor’s sarcastic response highlighted growing criticism that Trump was using the Coca-Cola announcement as a distraction from other controversies.
Recipe Controversy
Coca-Cola switched from cane sugar to cheaper high-fructose corn syrup in the 1980s, making it the second ingredient after carbonated water in US-produced Coke.
The company defended its current recipe on X, stating: “High fructose corn syrup (HFCS) – which we use to sweeten some of our beverages – is actually just a sweetener made from corn.”
Coca-Cola emphasised that the American Medical Association had confirmed HFCS was “no more likely to contribute to obesity than table sugar or other full-calorie sweeteners”.
Mexican Coke Preference
The proposed change would make US Coca-Cola taste more like the Mexican version, which continued using cane sugar and has developed a devoted following among American consumers.
Mexican Coke, sold in distinctive glass bottles, has been imported to the US since 2005 and is often considered superior in taste by enthusiasts who prefer the cane sugar formulation.
Currently, Coca-Cola uses cane sugar in products sold in Mexico, the United Kingdom, Africa and the Middle East, whilst maintaining corn syrup in US production.
Agricultural Impact
The US corn industry receives approximately $4 billion in annual subsidies, making domestic sugar prices roughly double the global market rate.
A shift to cane sugar could devastate corn-growing states like Iowa, America’s largest corn producer, whilst potentially benefiting Florida’s heavily subsidised sugar industry.
Trump has announced a 50 per cent tariff on Brazil, a leading sugar producer, whilst other sugar-producing nations face a 10 per cent baseline tariff under his new trade policies.
Health Secretary’s Sugar Stance
The controversy comes as Health and Human Services Secretary Robert F Kennedy Jr has declared war on sugar consumption, calling it “as addictive as crack.
Sugar is poison, and Americans need to know that it’s poison,” Kennedy stated in April, adding that it was “hurting them and it’s addicting them.
Kennedy has crusaded to eliminate certain dyes from foods and promised to publish updated dietary guidelines addressing America’s chronic disease crisis.
Company Response Measured
Coca-Cola CEO James Quincey had previously told investors the company was making “progress on sugar reduction” through recipe changes and marketing efforts.
The company’s measured response to Trump’s announcement suggests negotiations may be ongoing, with neither full confirmation nor denial of the president’s claims.
Industry analysts note that any complete switch to cane sugar would represent a massive shift in Coca-Cola’s US manufacturing process and supply chain, developed over four decades.
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Image Credit:
Donald Trump (cropped) – Image by Gage Skidmore, licensed under CC BY-SA 2.0, via Wikimedia Commons.
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