A seemingly offhand comment by President Donald Trump may have caused more than political rumination; it’s now causing turmoil in commodity markets, with impacts for ETF investors.On Wednesday, Trump said Coca-Cola Co KO was considering making the move from high-fructose corn syrup (HFCS) to cane sugar for its U.S. drinks. Although the soft drink giant hasn’t made any announcement, the statement was sufficient to cause shares of corn refiners Archer-Daniels-Midland Co ADM and Ingredion Inc INGR to decline i ...

Replacing high-fructose corn syrup with cane sugar could come at a cost, according to industry experts. Bulk high-fructose corn syrup cost about $0.35 per pound for 2025, only rising from $0.27 in 2015, and remaining fairly close to this price in the past few years, according to data from the U.S. Department of Agriculture (USDA).  In comparison, the price of refined white sugar is $1.01, which is up substantially from $0.61 in 2015.On Wednesday, President Donald Trump relayed that Coca-Cola agreed to use " ...

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Vita Coco Company, Inc. (COCO) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Vita Coco Company, Inc. is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. T ...

Key Takeaways KO is expected to post Q2 revenues of $12.6B, up 1.9% YoY, but EPS may dip 1.2% to 83 cents. Favorable price/mix and digital investments are likely to support revenues despite volume weakness. Currency headwinds and soft demand in key markets may weigh on KO's margin and EPS performance.The Coca-Cola Company (KO) is slated to report second-quarter 2025 earnings on July 22, before the opening bell. The company is expected to register year-over-year top-line growth when it posts second-quarter ...

Core Viewpoint - The announcement by former President Trump regarding Coca-Cola potentially switching back to real cane sugar in its U.S. products has sparked significant attention and concern within the industry, particularly affecting corn syrup manufacturers like Archer-Daniels-Midland, whose stock dropped by 8% in after-hours trading [2]. Group 1: Historical Context and Ingredient Changes - Coca-Cola originally used cane sugar as the sole sweetener in its classic formula until the 1980s when high fructose corn syrup (HFCS) began to replace it due to lower production costs influenced by U.S. corn subsidy policies [3][5]. - By the 1980s, nearly 40% of added sugars in the U.S. market were HFCS, leading Coca-Cola to switch its U.S. formula to HFCS while maintaining flexibility for other products [3][5]. Group 2: Market Variations and Consumer Preferences - In contrast to the U.S. market, countries like Mexico, the UK, and Australia still use cane sugar in Coca-Cola, creating a unique consumer preference for the "Mexican Coke," which is often sold at a premium due to its nostalgic value [7]. - The flavor profiles of cane sugar and HFCS differ significantly, with HFCS providing a quick sweetness and cane sugar offering a more prolonged, nuanced taste experience [7][8]. Group 3: Economic and Supply Chain Considerations - Transitioning back to cane sugar would significantly increase production costs for Coca-Cola, potentially leading to higher retail prices and reduced market competitiveness [9]. - The existing supply chain for HFCS is well-established, and switching to cane sugar would require substantial adjustments, including sourcing new suppliers and modifying processing equipment [9][10]. - The HFCS industry supports approximately 120,000 jobs, and a shift to cane sugar could result in a 3%-5% reduction in these positions, impacting the livelihoods of many in the food manufacturing sector [9]. Group 4: Political and Consumer Resistance - The U.S. agricultural subsidy structure heavily favors corn production, with about 60% of agricultural subsidies allocated to corn and other grains, complicating any potential shift to cane sugar [10]. - Consumer taste preferences have evolved, and while some may long for the original formula, many have adapted to the HFCS version, creating uncertainty about market acceptance of a potential switch back to cane sugar [10][11].

Market Trends & Industry Dynamics - President Trump's influence on Coca-Cola potentially leading to a switch to real cane sugar in the US, moving away from corn syrup used since the early 1980s [2] - The potential switch is linked to the health secretary's "Make America Healthy Again" campaign, targeting additives like high fructose corn syrup [5] - The corn lobby opposes the move due to potential harm to corn farmers and constituents [9] Investment Opportunities & Potential Risks - Switching to cane sugar could cost Coca-Cola hundreds of millions, potentially billions of dollars due to supply chain changes, bottling, distribution, and labeling [7] - The US does not produce enough cane sugar, necessitating imports, potentially from countries like Brazil, which could be affected by tariffs upwards of 50% [8][10] - Corn refiners in the US may face significant problems if Coca-Cola switches to cane sugar [9] Company Strategy & Business Decisions - Coca-Cola has neither confirmed nor denied the switch, stating "more details on new innovative offerings coming soon" [3] - The decision to use high fructose corn syrup since 1985 was driven by subsidies for corn farmers, making it a cheaper option [6] - The change would require a significant overhaul of Coca-Cola's supply chain, including new suppliers and labeling [7]

Core Viewpoint - The article discusses President Trump's unexpected announcement that Coca-Cola will consider using cane sugar as a sweetener in the U.S., which has sparked significant public interest and debate about the implications of this change [2][3]. Group 1: Coca-Cola's Sweetener History - Coca-Cola originally used cane sugar in its formula since the 19th century but switched to high fructose corn syrup (HFCS) in the late 1970s due to cost factors [3][13]. - The U.S. market has seen a long-standing preference for HFCS due to government subsidies for corn, making it cheaper than cane sugar [16][27]. Group 2: Political and Economic Implications - Trump's push for Coca-Cola to revert to cane sugar is seen as a move that could disrupt the established corn syrup industry, which has significant political backing [26][27]. - The potential switch to cane sugar could lead to increased costs for Coca-Cola, affecting product pricing and possibly leading to job losses in the corn syrup sector [26][27]. Group 3: Consumer Preferences and Health Concerns - Many consumers still associate cane sugar with a more authentic taste, despite the long-term use of HFCS in the U.S. [20][24]. - There are ongoing debates about the health implications of HFCS versus cane sugar, with some studies linking HFCS to obesity and other health issues [23][24]. Group 4: Market Variations - Coca-Cola uses different sweeteners in various markets based on local costs and consumer preferences, with cane sugar being favored in regions like Mexico due to lower costs [15][16]. - The article highlights that the choice of sweetener is largely driven by economic factors rather than purely consumer health concerns [15][27].

Group 1: Stock Performance - Coca-Cola (KO) closed at $70.59, marking a +1.91% move from the prior day, outperforming the S&P 500's daily gain of 0.54% [1] - Over the past month, Coca-Cola shares appreciated by 0.09%, while the Consumer Staples sector experienced a loss of 1.49% [1] Group 2: Earnings Forecast - Coca-Cola is expected to release earnings on July 22, 2025, with a predicted EPS of $0.83, indicating a 1.19% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $12.59 billion, reflecting a 1.86% increase compared to the previous year [2] Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are projected at $2.97 per share and revenue at $48.26 billion, representing changes of +3.13% and +2.55% from the prior year [3] - Recent changes to analyst estimates indicate positive sentiment regarding Coca-Cola's business and profitability [3] Group 4: Zacks Rank and Valuation - Coca-Cola currently holds a Zacks Rank of 2 (Buy), with a history of outperforming the market [5] - The company is trading at a Forward P/E ratio of 23.36, which is a premium compared to the industry average of 17.88 [6] - Coca-Cola's PEG ratio stands at 3.63, compared to the industry average of 2.56 [6] Group 5: Industry Context - The Beverages - Soft drinks industry is part of the Consumer Staples sector, with a Zacks Industry Rank of 81, placing it in the top 33% of all industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]

Industry Response - Coca-Cola and corn refiners responded to Trump's comment about using "real cane sugar" in Coke [1] Market Trend - The article discusses the ongoing debate and potential shift in sweetener preferences within the beverage industry [1]

Group 1 - The company announced a quarterly dividend of $0.51 per share [1]