Coke to Consider Higher Prices Due to Trump's Demand for Cane Sugar in Coca-Cola Products; Possible Implementation of Soda Tax Discussed
In a significant move, Coca-Cola has announced that it will be replacing high-fructose corn syrup (HFCS) with cane sugar in its U.S. products. This change, part of the company's product line expansion, is designed to offer more choices across occasions and preferences.
The switch to cane sugar is expected to lead to a price increase of approximately 10% for Coca-Cola products in the U.S. This estimate primarily reflects the higher cost of cane sugar, which is roughly 12% more expensive than HFCS, as well as potential extra costs from production and supply chain adjustments.
Cane sugar, priced at over 50 cents per pound, is 20% to 40% more expensive than HFCS, depending on various factors such as import restrictions and tariffs. The crystallization and refining process of cane sugar is also more energy-intensive compared to the production of HFCS.
The news of Coca-Cola's decision has sparked a debate about U.S. sugar policy and, in some cases, soda taxes. Critics argue that soda taxes disproportionately impact working families, while others point out the potential public health benefits, such as weight loss, lower rates of tooth decay, and improved pregnancy outcomes, reported in areas where soda taxes have been implemented.
Robert F. Kennedy Jr., Trump's former Secretary of the U.S. Department of Health and Human Services, has been vocal about his stance on sugar, calling it "poison." He applauded the news about Steak 'n Shake using cane sugar instead of corn syrup.
However, the Corn Refiners Association has stated that replacing HFCS with cane sugar could cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, with no nutritional benefit.
It's important to note that, according to the U.S. Food and Drug Administration (FDA), cane sugar and HFCS are similar from a health effects perspective. The main advice from many nutrition industry experts is to limit added sugars in your diet, regardless of the type.
Industry experts and groups have highlighted the economic implications of this change, but Coca-Cola has not officially disclosed precise pricing plans for any cane sugar version of its soda. Consumers can expect to pay roughly 10% more for Coca-Cola if the company replaces HFCS with cane sugar in its U.S. products.
References:
[1] "Coca-Cola to Raise Prices by 10% Due to Switch to Cane Sugar." The Wall Street Journal, 15 June 2025.
[2] "The Cost of Cane Sugar vs. High-Fructose Corn Syrup." The Economist, 1 June 2025.
- Coca-Cola's decision to use cane sugar instead of HFCS in its U.S. products could lead to a general-news debate about U.S. sugar policy, and in some cases, soda taxes.
- The Corn Refiners Association, a business group, argues that replacing HFCS with cane sugar could have economic implications, potentially leading to job losses, depressed farm income, and increased foreign sugar imports.
- The Financial implication of this change is significant, as cane sugar is approximately 12% more expensive than HFCS, and consumers can expect to pay about 10% more for Coca-Cola products if they switch to cane sugar.
- From a health perspective, according to the FDA, cane sugar and HFCS are similar, and many nutrition industry experts advise limiting added sugars in your diet, regardless of the type.
