Trump's Coke push will cost thousands of farm jobs, corn group warns
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A case of Coca-Cola. Photo: Justin Sullivan/Getty Images
President Trump's push to switch the sweetener in Coke to cane sugar could cost thousands of U.S. jobs, an influential corn industry group said.
Why it matters: A can of soda just became a minor political crisis, adding to a White House pile that includes the Jeffrey Epstein controversy, drama at the Federal Reserve, and a near-boiling trade war.
Catch up quick: Trump, in a Truth Social post Wednesday night, said Coca-Cola Co. had agreed to use real cane sugar in its products, which he added was "just better!"
- The company later issued a statement that did not confirm it was switching its entire Coke product line to cane sugar from high fructose corn syrup (HFCS), saying only it would have "more details on new innovative offerings" soon.
Yes, but: That was enough for the Corn Refiners Association to warn Wednesday of huge consequences.
- "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," the group's president and CEO, John Bode, said in a statement on its website.
- Bode's group is the trade association representing companies that make sweeteners, oils and other products from corn.
The intrigue: If Coke really did shift entirely to cane sugar from high fructose corn syrup, it could represent an economic hit to Iowa (the country's largest corn producer), while serving as a boon to Florida (the top cane sugar producer).
- It would also weigh on the corn industry.
- An analysis conducted by AI investment analytics group Reflexivity found the switch could cost the corn industry almost $1.2 billion annually in lost revenue to farms and HFCS processors.
- At the same time, Reflexivity said, it could add more than $600 million a year to Coca-Cola's sweetener costs.
- Were all that cane acquired domestically, the firm estimated, it would require a roughly 36% increase in U.S. production.
By the numbers: Shares in corn refiners Archer Daniels Midland and Ingredion were both about 1% lower in mid-afternoon trading, having pared much sharper early losses.
The bottom line: Coke's product roadmap was always of high interest to farmers and investors.
- Now, it'll be near the top of the D.C. agenda, too.
Editor's note: This story has been updated with additional market data.
