Dive Brief:
- Coca-Cola plans to launch a version of its namesake soda this fall made with U.S. cane sugar. Coke with sugar will not replace most Coke that is made with high fructose corn syrup.
- The beverage giant said the cola “is designed to complement the company’s strong core portfolio and offer more choices across occasions and preferences.”
- The news comes less than a week after President Donald Trump said Coca-Cola agreed to use cane sugar in its signature soda in the U.S. High-fructose corn syrup has been previously criticized by Health and Human Services Secretary Robert F. Kennedy Jr. as “a formula for making you obese and diabetic.”
Dive Insight:
Coca-Cola is no stranger to using sugar in its popular cola. Coke in some countries, such as Mexico, uses sugar. Coca-Cola imports the beverage from Mexico to the U.S. for consumers who prefer the taste or who view sugar as a more natural ingredient.
CEO James Quincey told analysts on Tuesday that Coca-Cola also uses cane sugar in its other products, including coffee, lemonade and tea.
Coke with sugar “will be an enduring option for consumers,” Quincey said. "We are definitely looking to use the whole toolbox of available sweetening options to some extent where there are consumer preferences."
After peaking in 1999, soft drink consumption has fallen every year as people become more health-conscious and prices increase, according to IBISWorld. Consumers are forecast to drink 42 gallons of soft drinks this year, down from nearly 50 gallons at its peak.
The decline has prompted soda makers to look for ways to have their core brands appeal to more consumers. Earlier this week, PepsiCo said it would launch a Pepsi offering with prebiotics this fall.
