Coca-Cola: The surreal thing is actually its brand appeal
Gift this article
The Coca-Cola Company, based in the US, saw its stock shrug off the cost impact of a revised sweetener plan revealed this week. Earlier too, its share price had been flat after President Donald Trump posted that he'd been 'speaking to Coca-Cola about using REAL cane sugar in Coke" in America; it had agreed, he said, and was thankful. As the company told investors a few days later, it plans to launch a cane variant of its fizzy drink this autumn as an extra choice.
The Coca-Cola Company, based in the US, saw its stock shrug off the cost impact of a revised sweetener plan revealed this week. Earlier too, its share price had been flat after President Donald Trump posted that he'd been 'speaking to Coca-Cola about using REAL cane sugar in Coke" in America; it had agreed, he said, and was thankful. As the company told investors a few days later, it plans to launch a cane variant of its fizzy drink this autumn as an extra choice.
This leaves space for business as usual; specifically, for cheaper corn syrup to remain its US bulge-bracket sweetener. It also tips this legendary brand into a swirl of political intrigue. Just recently, Trump's health secretary talked about the risks of corn syrup, all but calling it toxic.
Also Read: Bring back The Zing Thing, Coca-Cola
In the land famed for its free market, we thus have the spectacle of a nudge that has stunned corn farmers, left folks puzzled over how cane sugar is any better, and prompted critics of the White House to link it with the alleged sway held by a rich sugarcane lobby, one that's happy with sugar prices kept high by an import-tariff shield, but may have spied a sweeter pile of profit in a public sales prod.
America is no stranger to dirigiste detours, especially in its farm sector. This intervention, however, is directed at America Inc. Stakeholders include Warren Buffett and perhaps also his fan base of value investors. In symbolic terms, cola market distortion is a blow to the myth of US capitalism being too deeply dug in to display Soviet characteristics. Admittedly, it's not command-and-control.
To Coca-Cola's credit, its words betray no hint of giving up its focus on sugar reduction across its beverage portfolio, as shelf offtake dictates and healthy intake demands. So its steady stock can be explained by an impact that's expected to be too soft to disturb a business boasting of a 3% dividend yield.
Arguably, though, what keeps Coca-Cola cool under pressure is also the real secret of its success: brand power. That this cola's effect on taste buds was only a minor factor hit home in 1985, thanks to its New Coke fiasco. This was a sweeter version formulated to take on its zesty rival Pepsi, a move it had to reverse in response to a rebellion among Coke loyalists, as Mark Pendergrast tells the tale in For God, Country and Coca-Cola (1993).
The company's taste research with blindfold tests was promptly binned for a return to its classic formula—marketed as 'The Real Thing."
Also Read: Mint Explainer: Campa Cola and the power of nostalgia
Many suspect Coca-Cola's flip-flop was a marketing stunt, which the business denies. If it was a lesson, it's a valuable one. Think of dreams. Even if they engage all five of our senses, we usually recall them as audio-visual. All dream-sellers know this, but Coca-Cola has a special edge in its mass outreach.
As a brand, the aural and cursive appeal of its label has no parallel. It rolls easily off the tongue, thanks to four easy syllables—with the curvy letters of each appearing to blend into a flowing sea of red. So familiar is it, that it breezily passes the mirror test: One can 'read' its lateral inversion in a flash. Such brand appeal is an enviable asset, for it frees the cola formula for strategic tweaks in the larger quest to serve an evolving market. Sugar is all but irrelevant.
So long as the brand's marketers can creatively keep its target audience engaged by putting a dream—rather than just a soda can—within an 'arm's reach of desire,' to echo an internal slogan, The Coca-Cola Company could surf the frothy waves of a sugar shake-up. It's a real asset. Topics You May Be Interested In
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
7 minutes ago
- Indian Express
Agriculture a stumbling block in talks, but India-US trade in sector sees surge
Even as agriculture, along with purchase of Russian oil, has emerged as a key sticking point in the trade talks between India and the United States, here's an interesting fact: Trade in farm produce between the two countries is actually booming and poised to touch a new record this year. During January-June 2025, India's imports of agricultural products from the US were, at $1,693.2 million, a whopping 49.1% more than the $1,135.8 million for the same six months of the last calendar year. India's agricultural exports to the US, too, were up 24.1%, from $2,798.9 million in January-June 2024 to $3,472.7 million in January-June 2025 (see chart). With US President Donald Trump doubling the tariff on import of goods from India to 50 per cent on Wednesday, the impact remains to be seen, but the trends so far suggest two-way farm trade at least surpassing previous highs. If the current growth rates hold, India's agricultural exports to the US could top $7.7 billion, and that of the US to India could be over $3.5 billion in 2025. The US's exports to India have been led by tree nuts — mainly almonds and pistachios — which were valued at $1.1 billion-plus in 2024, and registering further 42.8% annual growth during the first six months of this year. The other three big-ticket items are ethanol, soyabean oil and cotton. Ethanol exports from the US to India, worth over $420 million last year, are basically for manufacturing alcohol-based chemicals, medicines and other industrial uses. The US wants India to open up imports of ethanol also for fuel use, i.e. blending with petrol and diesel. India has been resisting that, just as much as it is not allowing imports of genetically modified (GM) maize and soyabean. US farmers mostly grow only GM maize (corn) and soyabean. India currently permits imports of non-fuel ethanol and oil, produced from GM corn and soyabean respectively, but not the whole grain and oilseed as such. Although the trade negotiations between the two sides are stuck due to India not yielding on GM crops, US exports of both corn-derived ethanol and soyabean oil to India have posted strong growth. The huge jump in soyabean oil exports from the US this year is likely to be sustained by India's move, on May 31, to slash its import duty from 27.5% to 16.5%. Cotton exports from the US have also been growing on the back of India turning into a net importer of the natural fibre. India's agricultural exports to the US are somewhat more diversified. While seafood (primarily frozen shrimp) has been the top item, there are others as well — from spices and essential oils to basmati rice, processed fruits & vegetables and baked foods — that have been doing well, with annual shipment value exceeding $200 million each. It's not clear how much of all these exports would be affected, especially with the new Trump tariff. Take seafood, where India's exports of $2,483.8 million in 2024 was just behind Canada ($3,956.9 million) and Chile ($3,030.1 million), and ahead of Indonesia ($1,907.9 million), Vietnam ($1,790.4 million) and Ecuador ($1,616.4 million). As of now, the 50% tariff on India is above that of all these competitors: Chile (10%), Ecuador (15%), Indonesia (19%), Vietnam (20%) and Canada (35%). While seafood exports from India have remained buoyant, growing by 32.5% year-on-year in January-June, sustaining that may not be easy as the tariff differentials bite. But the fact that agriculture trade per se between India and the US is booming should be some consolation in the present situation where talks are at a standstill.
Deccan Herald
7 minutes ago
- Deccan Herald
In Gaza, hunger as a weapon of war
The genocide and famine engineered by Israel in Gaza have raised new questions to a world that has continued to fail with answers. A humanitarian crisis of unimaginable proportions has unfolded in Gaza after the Israeli government imposed a near-total siege and prevented all aid from reaching the strip, while continuing military action. The situation may be political and diplomatic, but at its core is a deeply moral issue. During the Holocaust, the world did not have knowledge of the full extent of the atrocities. But the genocide in Gaza is taking place in full view of the world – a section of the international community is complicit by supporting Israel, while others are unable to stop it for various reasons. Evidence has emerged on widespread starvation, malnutrition, and disease causing a spike in hunger-related deaths. Malnutrition levels among children under five have reached 16.5%..Israel has violated all tenets of morality and international law. The International Court of Justice has passed strictures against the regime and acknowledged the risk of genocide in Gaza. The United Nations and major international humanitarian bodies such as Amnesty International and Doctors Without Borders have expressed serious concern over the situation in Gaza. More than at any time in history, hunger is being used as a weapon of war. Access to water is restricted and there are severe curbs on supply of fuel and other commodities. Not even basic medical facilities are available and offers of medical aid and assistance are turned away. As much as 92% of the houses in Gaza have been destroyed and forced displacement orders have been issued in about 86% of the territory. The Gaza Humanitarian Foundation, set up by Israel and the US, is a cruel joke, running just four distribution centres against the 400 that the UN and the other agencies had the failure of the indirect ceasefire and hostage release talks in Doha, there are reports of Israel planning a bigger offensive for the 'conquest of Gaza'. The talks had aimed at a 60-day truce, inflow of aid, and exchange of half of the Israeli hostages with jailed Palestinians in Israel. There is opposition in Israel to the extension of war, but Prime Minister Benjamin Netanyahu has sounded determined and US President Donald Trump supportive. The UN Conference on Palestine has proposed a two-state solution and some of the major countries, including France and the UK, have decided to recognise a Palestinian state. More than 145 countries have recognised Palestine. The question the world must answer is why it has failed to recognise and act on the basic human responsibility to the people of Palestine.
Economic Times
7 minutes ago
- Economic Times
Trump and Putin meet in person soon? White House signals fresh push from US to end Russia-Ukraine conflict amid tariff threats
Donald Trump is trying to end the Russia-Ukraine war. He might meet Vladimir Putin next week. A White House official says the meeting's schedule and location are not yet fixed. Trump is also open to meeting Volodymyr Zelenskyy. The US may impose sanctions against Russia. Marco Rubio says much needs to happen before a Trump-Putin meeting. Tired of too many ads? Remove Ads Threat of US sanctions Tired of too many ads? Remove Ads Rubio lowers expectations for a meeting Would work toward an end to the Russia-Ukraine war, says Trump As US President Donald Trump seeks to end the Russia-Ukraine war, he could meet in person with his Russian counterpart Vladimir Putin as soon as next week, a White House official said Wednesday (August 6, 2025). The White House official, however, did not confirm the schedule of the meeting yet and cautioned that no location has been official was not authorized to speak publicly and spoke to The Associated Press on condition of anonymity to discuss internal plans. The White House said Trump was also open to a meeting with both Putin and Ukrainian President Volodymyr Zelenskyy. If Trump meets Putin, it would be their first meeting since he returned to office in 2025 after winning the presidential polls in 2024. The meeting of two leaders would be a significant milestone in the 3-year-old war, though there's no promise that such a meeting would lead to the end of the fighting since Russia and Ukraine remain far apart on their who appeared before reporters later at the White House, didn't answer questions about a potential location for a meeting, but when asked about a summit with Putin and Zelenskyy, said, 'There's a very good prospect that they will' meet. The president declined to predict how close he was to reaching a deal to end the fighting, saying, 'I've been disappointed before with this one.'Earlier on Wednesday, the same White House official said the U.S. was still expected to impose secondary sanctions against Russia on Friday, after a 10-day deadline that Trump imposed was to expire. The White House has not yet released details about the has threatened 'severe tariffs' and other economic penalties if the killing doesn't stop. Trump has also threatened to slap tariffs on nations that buy Russian oil, which could increase import taxes dramatically on China and India. He said Tuesday he hadn't publicly committed to any particular tariff rate and indicated that his decision could depend on an outcome of the meeting with has expressed increasing frustration with Putin over Russia's escalating strikes on civilian areas of Ukraine, intended to erode morale and public appetite for the war. The intensified attacks have occurred even as Trump has urged the Russian leader in recent months to to a query on a potential Trump-Putin meeting in an interview with Fox Business, Secretary of State Marco Rubio said, 'A lot has to happen before that can occur.' Rubio said Washington would be having talks with its European allies and the Ukrainians over the next few days. He said a Trump meeting directly with the leaders of Russia and Ukraine would help close an agreement, but said, 'We've got to get close enough to that point so that a meeting like that will be productive and worth doing.' 'Today was a good day, but we've got a lot of work ahead," he said. "There are still many impediments to overcome.'News of a potential meeting with Putin, which was first reported by The New York Times, came hours after Trump's special envoy Steve Witkoff met with Putin in Moscow. Trump had posted earlier on Truth Social that Witkoff 'had a highly productive meeting' with Putin in which 'great progress was made.'Trump said earlier Wednesday that he had updated America's allies in Europe and that they would work toward an end to the war 'in the days and weeks to come.' White House press secretary Karoline Leavitt said in a statement that the 'Russians had expressed their desire' to meet with Trump. The Kremlin has not yet commented on any potential meetings with met with Putin days before the White House's deadline for Russia to reach a peace deal with Ukraine or potentially face severe economic penalties that could also hit countries buying its oil. The meeting between Putin and Witkoff lasted about three hours, the Kremlin foreign affairs adviser, Yuri Ushakov, said Putin and Witkoff had a 'useful and constructive conversation' that focused on the Ukrainian crisis and, in a nod toward improving relations between Washington and Moscow, 'prospects for possible development of strategic cooperation" between the United States and Russia.
