A Win For RFK Jr. And MAHA? Coca-Cola's Cane Sugar Variant Is Coming To America This Fall: CEO James Quincey Calls It 'An Enduring Option For Consumers'
The Coca-Cola Co. (NYSE:KO) is all set to launch the cane-sugar version of its flagship soft drink in the United States this fall, marking a significant shift in its formulation strategy.
Check out the current price of KO stock here.
What Happened: During its second quarter earnings call on Tuesday, the company’s CEO, James Quincey, confirmed the move, saying, “We're going to be bringing a Coke sweetened with U.S. cane sugar into the market this fall. And I think that will be an enduring option for consumers.”
The company notes that cane sugar isn’t new to its U.S. product line-up, with a presence across several existing products such as its lemonades, teas, coffee, and vitamin water drinks.
Quincey sees the new cane sugar variant as part of a broader strategy to meet evolving consumer tastes. “We are definitely looking to use the whole toolbox, the whole toolkit of available sweetening options to some extent where there are consumer preferences,” he said.
The new variant is expected to complement Coca-Cola's existing lineup, not replace it, and serve as an option for differentiation for consumers.
Why It Matters: A week ago, President Donald Trump posted on Truth Social, saying that “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 added that he felt this was a good move. “You’ll see. It’s just better,” he said.
This comes amid a growing push to Make America Healthy Again, spearheaded by Secretary of Health and Human Services, Robert Kennedy Jr.
Nearly a year ago, Kennedy urged Americans to choose Mexican Coke over its U.S. counterpart, citing its use of cane sugar instead of high-fructose corn syrup. “If you want to drink Coke, drink a Mexican Coke because they don't allow it down there,” he said.
Coca-Cola’s biggest rival, PepsiCo Inc. (NASDAQ:PEP), announced plans for a cane sugar-based prebiotic cola early this week, in order to counter declining soda consumption.
The Coca-Cola Co. released its second quarter results on Tuesday, reporting $12.50 billion in revenue, up 1% year-over-year, but falling short of consensus estimates at $12.54 billion. Profits during the quarter stood at $0.87 per share, ahead of analyst estimates at $0.83.
Price Action: The company’s shares were down 0.59% on Tuesday, trading at $69.66, and are up 0.27% after hours.
Coca-Cola’s shares score high on Growth in Benzinga’s Edge Stock Rankings, but fall short on other metrics. They also have a favorable price trend in the long term. Click here for deeper insights into the stock, as well as how it compares with long-time rival PepsiCo.
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Posted-In: Health Care
