Coca-Cola Will Get More Expensive if it Changes to Cane Sugar. Here's Why

Newsweek

3 days ago

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On Wednesday, President Donald Trump took to Truth Social to announce that Coca-Cola had agreed to use "REAL Cane Sugar" in its beverages produced in the U.S., adding that this "will be a very good move by them."
The change would fulfill one of the goals of Trump's health secretary, Robert F. Kennedy Jr., who has blamed high intake of fructose corn syrup—the sweetener currently used in U.S. coke—for many of America's health maladies and called the ingredient "just a formula for making you obese and diabetic."
Coca-Cola has not yet explicitly confirmed the change. A spokesperson for the company said in a statement that they "appreciate President Trump's enthusiasm for our iconic Coca-Cola brand" and that "more details on new innovative offerings within our Coca-Cola product range will be shared soon."
However, if Trump's post is correct, and the company does indeed plan on switching to cane sugar after decades of sweetening its beverages with high-fructose corn syrup, this could result in significant price increases in the U.S.
Bottles of Coca-Cola are displayed in San Anselmo, California, on April 24, 2023.
Bottles of Coca-Cola are displayed in San Anselmo, California, on April 24, 2023.While cane sugar is still used in many coke variants made overseas, since the 1980s, Coca-Cola sold in the U.S. has primarily relied on corn syrup as a sweetener because of its relative cost-effectiveness.
The U.S. imports both corn and sugar, but its domestic agricultural base has significantly reduced reliance on imports of the former. According to the Observatory of Economic Complexity, the U.S. imported $2.58 billion worth of raw sugar, of which $1.66 billion was cane, compared to only $258 million worth of corn in 2024.
Domestic corn production has been boosted by nearly a century of subsidies in the form of direct payments, crop insurance programs, and price supports for American farmers. These totaled reached $3.2 billion in 2024, making corn the most-subsidized crop in the country.
The ability to largely rely on domestic production has also reduced the effective cost of high-fructose corn syrup, which is mainly produced in the Midwestern U.S., with Iowa and Illinois being major production areas. As a result, America's corn farmers and refiners have already responded negatively to Trump's announcement.
"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," said Corn Refiners Association President and CEO John Bode. "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."
In addition, tariffs and restrictions placed on foreign sugar imports have seen sugar prices in the U.S. surge over the past few years. According to the Sweetener Users Association, U.S. sugar costs have risen from $27.2 per pound in 2013 to $54.1 in 2024, more than double the global rate of $25.7.
These effects are already evident when comparing Coca-Cola made with cane sugar to versions made with corn syrup. A 24-pack of Mexican coke —which uses pure cane sugar—costs $40.69 at Costco, compared with only $25 dollars for the canned, corn-syrup equivalent.
These price differences could increase, given the further tariffs Trump is currently threatening on imports from many of America's main sugar suppliers, such as Brazil and Mexico. In addition, the Department of Agriculture has recently announced further restrictions on the import of "specialty" sugars, such as organic cane, as part of its "farmers first" policy.