Latest news with #cornSyrup
Yahoo
20-07-2025
- Business
- Yahoo
Coke's shift to cane sugar would be expensive, hurt US farmers
By Marcelo Teixeira, Karl Plume and Renee Hickman NEW YORK (Reuters) -A possible move by Coca-Cola , and other beverage and food industries, to use cane sugar instead of corn syrup as a sweetener would be difficult and expensive to implement, while mostly negative for farmers in the United States. U.S. President Donald Trump said on Wednesday that Coca-Cola had agreed to use cane sugar in its beverages in the country after his discussions with the maker of the top soda pop brand. Health Secretary Robert F. Kennedy Jr. and activists from his Make America Healthy Again (MAHA) campaign have been pushing for changes in ingredients used by the food and beverage industry, claiming the proposed substitutes are healthier. Kennedy has said the consumption of both sugar and high fructose corn syrup are unhealthy, and scientists say sugar presents some nutritional benefits over high fructose corn syrup. Coca-Cola already sells Coke made from cane sugar in other markets, including Mexico, and some U.S. grocery stores carry glass bottles with cane sugar labeled "Mexican" Coke. In response to Trump's comment, Coca-Cola said "more details on new innovative offerings within our Coca-Cola product range will be shared soon.' PepsiCo also said on Thursday it would use sugar in its products like Pepsi beverages if consumers want it. Industry analysts, however, said changes in the formulation of the rest of the Coke sold in the U.S., and other beverages and candies, would involve significant adjustments to companies' supply chains, since corn syrup and sugar come from different producers. It would also involve changes to product labeling, and cost more. "Food and beverage industries started to use corn syrup in the U.S. in the past because of costs. It is cheaper than sugar," said Ron Sterk, a senior editor at SOSland Publishing, an information provider for the ingredients industry in the U.S. He said the beverage industry uses 55% High Fructose Corn Syrup, or 55HFCS, while bakers use 42% HFCS. The Corn Refiners Association said the complete elimination of high fructose corn syrup from the U.S. food and beverage supply would cut corn prices by up to 34 cents a bushel, resulting in a loss of $5.1 billion in farm revenue. "The resulting economic shockwave would lead to rural job losses and significant economic consequences to communities across the country," CRA said. Agricultural processors such as Archer-Daniels-Midland and Ingredion, two of the largest HFCS producers, grind corn at mills dotted around the Midwest farm belt to produce corn sweetener and other goods like ethanol biofuel. Shares of both companies fell on Thursday. ADM is estimated to ship 4 billion to 4.5 billion pounds of high fructose corn syrup every year, accounting for roughly 6% to 7% of projected 2026 earnings, said analyst Heather Jones of Heather Jones Research. "If Coke were to shift the entirety of its HF55 usage to cane, the cost increase would very likely exceed $1 billion given the current price gap between HF55 and cane sugar and the probability of very large price increases for the latter," Jones said in a research note. To produce one pound of HFCS, the industry uses around 2.5 pounds of corn, so a large shift in corn syrup use in the U.S. would hurt demand for the cereal, hurting corn growers, while probably boosting imports of cane sugar since there is not enough produced in the U.S. to satisfy American consumers' sweet tooth. SUGAR DEFICIT Around 400 million bushels of corn are used annually to make corn syrup for drinks and other food products, representing around 2.5% of U.S. corn production, according to U.S. government data. The U.S. produces around 3.6 million metric tons of cane sugar per year, half of that in Trump's home state of Florida, compared with around 7.3 million tons of corn syrup. Trump's ongoing trade wars, however, would make it difficult to cover the deficit, sugar analyst Michael McDougall said. "It will most likely come from Brazil," he said, referring to the world's top cane sugar producer, "but Trump just hit Brazil with a 50% import tariff." Not only does cane sugar cost more, but Coca-Cola has independent bottlers with hundreds of facilities already designed for use with high fructose corn syrup, said James McDonnell, partner at CIL Management Consultants. A reformulation would require additional investments, said McDonnell, and it is unlikely that bottlers would want to eat the cost. Consumers will also balk at the added cost, he said, "and you thought they were angry at the price of eggs!" Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Times
18-07-2025
- Health
- Irish Times
Coca-Cola defends corn syrup after Trump claims he struck cane sugar deal
The Coca-Cola company has defended its use of corn syrup after Donald Trump 's claim Wednesday that he had apparently convinced the brand to switch to using sugar cane in its US drinks, as it does in Mexico and the UK and Ireland. '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. I'd like to thank all of those in authority at Coca-Cola,' Trump said in a social media post late Tuesday . 'This will be a very good move by them – You'll see. It's just better!' Initially, the drinks giant responded with a neutral statement of appreciation for 'President Trump's enthusiasm' for Coke, and a vague message about 'new innovative offerings within our Coca-Cola product range' to come. On Thursday, however, the soft drinks company released an additional statement making positive claims about high-fructose corn syrup, a product that some blame for soaring obesity rates and which has become a target of US health secretary Robert F Kennedy jnr 's 'Make America healthy again' movement. 'The name sounds complex, but high fructose corn syrup (HFCS) – which we use to sweeten some of our beverages – is actually just a sweetener made from corn,' Coca-Cola said in a statement. 'It's safe; it has about the same number of calories per serving as table sugar and is metabolised in a similar way by your body.' It added that the American Medical Association 'has confirmed that HFCS is no more likely to contribute to obesity than table sugar or other full-calorie sweeteners', and said: 'Please be assured that Coca-Cola brand soft drinks do not contain any harmful substances.' In 2023, the association released a statement saying it recognised 'that at the present time, insufficient evidence exists to specifically restrict use of high fructose corn syrup (HFCS) or other fructose-containing sweeteners in the food supply or to require the use of warning labels on products containing HFCS'. Trump's rather abrupt entry into the Coca-Cola sugar debate comes as he struggles to move past a growing controversy over the release of files relating to the disgraced sex offender Jeffrey Epstein , a one-time friend of Trump's. "I have been speaking to — The White House (@WhiteHouse) The president's high consumption of Diet Coke is well documented, including the installation of a red 'Diet Coke button' near his desk that he can press in order to summon a staff member with the drink. Diet Coke contains neither corn syrup nor sugar cane, but aspartame, a low-calorie artificial sweetener. A switch by Coca-Cola to using sugar cane could trade implications for the $285 billion US soft drinks market. In Mexico Coca-Cola is made with cane sugar and packaged in glass bottles. Some is imported into the US, where it sells unofficially as 'Mexican Coke' at a premium over its domestic counterpart. In the 1980s Coca-Cola's US arm changed its formulation to use high-fructose corn syrup, supported by US farming subsidies, and not imported sugar cane subjected to import tariffs. But turning back the clock could prove costly if Trump's high US tariffs on nations that produce sugar cane continue to apply. [ Is Trump's tariffs plan working for the US? And where does it go next? Opens in new window ] Trump had previously clashed with the company over voting access in Georgia, where the company is based. But in advance of his second inauguration as president in January of this year, the company's chief executive, James Quincey, presented Trump with an inaugural Diet Coke bottle. – The Guardian
The Guardian
17-07-2025
- Health
- The Guardian
Coca-Cola defends corn syrup after Trump claims he struck cane sugar deal
The Coca-Cola company has defended its use of corn syrup after Donald Trump's claim Wednesday that he had apparently convinced the brand to switch to using sugar cane in its US drinks, as it does in Mexico and the UK. '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. I'd like to thank all of those in authority at Coca-Cola,' Trump said in a social media post late Tuesday. 'This will be a very good move by them — You'll see. It's just better!' Initially, the drinks giant responded with a neutral statement of appreciation for 'President Trump's enthusiasm' for Coke, and a vague message about 'new innovative offerings within our Coca-Cola product range' to come. On Thursday, however, the soft drinks giant released an additional statement making positive claims for high-fructose corn syrup, a product that some blame for soaring US obesity rates and which has become a target of health secretary Robert F Kennedy Jr's Make America Healthy Again movement. 'The name sounds complex, but high fructose corn syrup (HFCS) – which we use to sweeten some of our beverages – is actually just a sweetener made from corn,' Coca-Cola said in a statement. 'It's safe; it has about the same number of calories per serving as table sugar and is metabolized in a similar way by your body.' It added that the American Medical Association 'has confirmed that HFCS is no more likely to contribute to obesity than table sugar or other full-calorie sweeteners', and said: 'Please be assured that Coca-Cola brand soft drinks do not contain any harmful substances.' In 2023, the AMA released a statement saying it recognized 'that at the present time, insufficient evidence exists to specifically restrict use of high fructose corn syrup (HFCS) or other fructose-containing sweeteners in the food supply or to require the use of warning labels on products containing HFCS'. Trump's rather abrupt entry into the Coca-Cola sugar debate comes as he struggles to move past a growing controversy over the release of files relating to the disgraced sex offender Jeffrey Epstein, a one-time friend of Trump's. The president's high consumption of Diet Coke is well-documented, including the installation of a red 'Diet Coke button' near his desk that he can press in order to summon a stafff member with the drink. Diet Coke contains neither corn syrup nor sugar cane, but aspartame, a low-calorie artificial sweetener. A switch by Coca-Cola to using sugar cane could trade implications for the $285bn US soft drinks market. Coca-Cola in Mexico is made with cane sugar and packaged in glass bottles. Some is imported into the US, where it sells unofficially as 'Mexican Coke' at a premium over its domestic counterpart. In the 1980s Coca-Cola's US arm changed its formulation to use high-fructose corn syrup, supported by US farming subsidies, and not imported sugar cane subjected to import tariffs. But turning back the clock could prove costly if Trump's high US tariffs on nations that produce sugar cane continue to apply. Trump had previously clashed with the company over voting access in Georgia, where the company is based. But ahead of his second inauguration as president in January of this year, the company's CEO, James Quincey, presented Trump with an Inaugural Diet Coke Bottle.
