Coca-Cola is releasing a US version of its soda with cane sugar. But why did the company change to high fructose corn syrup in the first place. [Music] >> In the late '7s, US soda companies found that their standard sweetener, which is cane sugar, was getting expensive.Labor costs kept domestic sugar prices high, and new tariffs in the early 80s on cheaper to produce international sugar, meant importing was expensive, too. But then they found a new cheaper sweetener option that was being subsidized by the U ...

Market Trends & Industry Dynamics - Pepsi's CEO discussed the possibility of transitioning away from corn syrup, contingent on making sugar more affordable in the US through government intervention and farming strategies [1] - The beverage industry might see a shift towards using real cane sugar, driven by consumer demand and potentially influenced by the US President's affinity for Coca-Cola products [11][12] - A potential increase in demand for sugar could arise from beverage and packaged food companies introducing products with cane sugar, impacting syrup companies [9][10] Product & Strategy - Coca-Cola's full sugar platform (Coke Red can) represents less than 5% of its total global volumes, excluding Diet Coke and Coke Zero Sugar [4] - A complete conversion from high fructose corn syrup to cane sugar across all Coca-Cola products is unlikely, but the launch of a cane sugar-based product is possible, similar to Mexican-style Coke [5][6] - Pepsi will adapt to consumer preferences, potentially moving towards cane sugar-based sodas if there is sufficient demand [11] Cost & Supply Chain - Sugar is more expensive in the US than in many other parts of the world, necessitating a conversation with the government to reduce costs [1] - The US imports a significant amount of cane sugar, primarily from Brazil, as domestic production is limited to parts of Louisiana and Florida [7][8] - High fructose corn syrup became prevalent in the 1980s due to its lower cost compared to sugar [9]

Market Trends & Consumer Preferences - President Trump stated Coca-Cola will update its American ingredients list to use real cane sugar instead of high fructose corn syrup [1] - Coca-Cola's response to the claim didn't explicitly confirm the switch to cane sugar, hinting at potential new product offerings [3] - The company might introduce a new line of Coke with pure cane sugar while maintaining the existing formula [3] Company Strategy & Innovation - Coca-Cola is considering introducing something called New Coke [4] - The company previously introduced multiple versions of Coke, such as Coke Zero, without changing the primary brand name [6] - The introduction and subsequent reversal of "New Coke" in the 1980s is a case study in business schools regarding marketing and corporate governance [5][6] Financial Implications - Archer Daniels Midland's shares are down by approximately 57% in pre-market trading [2]