Coca-Cola’s stock faced significant fluctuations following remarks made by former President Donald Trump regarding the potential for reformulating its products. Coca-Cola’s shares have spiked almost 7% year to date. The real punchline was directly related to Trump’s mention of the company’s supposed agreement to trade its high fructose corn syrup in exchange for cane sugar, which sent the firm’s stock tanking by as much as 6%. In that broader market context, Coca-Cola has actually done very well — its shares are up over 11% in 2023.
Trump expressed his enthusiasm for Coca-Cola’s iconic brand, stating, “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!” When contacted for clarification on the case Trump outlined in North Carolina, Coca-Cola declined to verify any deal to eliminate its ingredients.
Experts have expressed serious concerns regarding the unintended consequences of such a reformulation. John Bode, president and CEO of a food industry group, emphasized that switching from high fructose corn syrup to cane sugar would cost thousands of American food manufacturing jobs and depress farm income. He stated, “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 Trump administration has, surprisingly, recently pushed food companies like Coca-Cola to reformulate their products. This is not the first time Health and Human Services Secretary Robert F. Kennedy Jr. has called on industry executives to remove toxic ingredients from food. It’s an administration that’s been deeply committed to bringing back American manufacturing jobs. The latter includes an express goal of cutting the nation’s trade deficit.
With respect to the market reaction, bio similar or generic related stocks saw declines. Ingredion, a major supplier of high fructose corn syrup, saw its shares fall more than 5% after Trump’s announcement, reflecting investor concerns about the potential ramifications for the industry.
Coca-Cola weighed in on the social media drama by congratulating ampho Trump on his excitement for Coca-Cola. “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand,” the company stated, maintaining its position while navigating the public discourse surrounding its product formulations.