Trump's Cane Sugar Push for Coca-Cola Faces Supply Chain Hurdles

Core Insights - Coca-Cola is beginning to roll out a new product made with American cane sugar, but the rollout is constrained by limited domestic sugar supply and production capacity in glass bottles [2][3][5]. Group 1: Product Development - The new Coke product using US cane sugar was announced by President Trump and is expected to be unveiled this fall [3]. - Coca-Cola currently uses high fructose corn syrup, which is cheaper than cane sugar, for its signature product in the US [3]. - The company aims to replicate the success of the Mexican version of Coke, which uses cane sugar, by offering a similar product with American cane sugar [5]. Group 2: Supply Chain Challenges - US cane sugar production accounts for approximately 30% of the nation's sugar supply, with the remainder sourced from sugar beets and imports [4]. - The limited availability of cane sugar in the US is a significant challenge for Coca-Cola in expanding its new product line [2][4]. - The company is facing additional challenges related to tariffs, trade policies, and the impact of government shutdowns on food aid payments [2]. Group 3: Production Capacity - Coca-Cola's ability to produce the new drink in glass bottles is a limiting factor, as the production process differs from that used for cans [6]. - The company plans a phased rollout starting in select markets, with a broader scale-up anticipated by 2026 [6].