Coca-Cola $KO is launching a cane-sugar soda this fall in the U.S., the beverage company announced in its second quarter earnings Tuesday.
Coca-Cola is bringing cane-sugar back in a new product launching this fall in the U.S., the company said in its second quarter earnings
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Coca-Cola $KO is launching a cane-sugar soda this fall in the U.S., the beverage company announced in its second quarter earnings Tuesday.
The company’s new product announcement comes nearly a week after President Donald Trump took to Truth Social Wednesday to declare that Coca-Cola had agreed to switch from high-fructose corn syrup to real cane sugar in its U.S. beverages.
The post said, “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. This will be a very good move by them — You’ll see. It’s just better!”
At the time, Coca-Cola didn’t immediately confirm the president’s remarks. Instead, it said, “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand. More details on new innovative offerings… will be shared soon.”
The beverage company said in a press release on its earnings report that its new cane-sugar product will “expand its Trademark Coca-Cola product range” and is intended to “offer more choices across occasions and preferences.”
Trump's comment comes amid a push by the administration to pressure food and beverage companies into cleaner ingredient lists. Health and Human Services Secretary Robert F. Kennedy Jr. has publicly criticized HFCS as “a formula for making you obese and diabetic,” and has urged food makers to remove what he calls “the worst ingredients” from their products; however, nutritional experts generally agree sugar offers no significant health advantages over HFCS.
Coca-Cola beat some of Wall Street's expectations during its second quarter earnings posted before the bell Tuesday. The soda company reported an earnings per share of $0.87 with a revenue of $12.5 billion.
Zacks Equity Research estimated Coca-Cola would report a decline in its earnings, with an earnings per share of $0.83 on a $12.59 billion revenue. The soda company exceeded analysts EPS expectations but fell below revenue projections.
Coca-Cola updated its full year guidance in its earnings report, stating it now expects an earnings per share growth of about 3%.
After the company’s earnings report was released, its stock fell 0.8% to $69.54 pre-market, Barrons reported. The company’s stock opened at $69.45 after closing Monday at $70.07, according to MarketWatch.
Although the company beat analysts’ EPS estimates, Coca-Cola reported a decline in its unit case volume globally and failed to surpass revenue projections. This decline showed in Tuesday’s premarket movement as investors were hesitant to push the stock up and instead let it fall nearly 1%.
The beverage producer reported a 1% decline in global unit case volume, due to declining growth in Mexico, India, and Thailand offsetting positive growth in Central Asia, Argentina, and China.
The company’s North American unit case volume dropped 1%, due to a decline in Coca-Cola.
Unit case volume grew in Europe, the Middle East, and Africa by 3%, while it dropped 2% in Latin America and 3% in Asia Pacific.
Sparkling soft drinks dipped 1% while the company’s trademark beverage Coca-Cola declined 1%. However, Coca-Cola Zero Sugar grew 14% from growth “across all geographic operating segments,” the report said.
Juice, value-added dairy and plant-based drink options dropped 4%.
Coca-Cola owns Dasani, Coca-Cola, Fairlife, Fanta, Powerade, Minute Maid, Sprite, and more.
—Emily Price contributed to this article.
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