Coca-Cola (KO) announced that it will introduce beverages made with real cane sugar to its U.S. lineup this fall, while continuing to offer its signature products sweetened with high fructose corn syrup.
“It’s an ‘and,’ not an ‘or,’” Coca-Cola CFO John Murphy told Yahoo Finance on Tuesday. “[Cane sugar is] another option to offer a consumer here in the United States that’s continuously looking for more choice.”
The company’s announcement follows closely on the heels of President Trump’s recent social media post highlighting Coca-Cola’s use of “REAL Cane Sugar” in U.S. drinks. At the time, Coca-Cola expressed appreciation for the president’s enthusiasm.
On Tuesday, Coca-Cola reported stronger-than-expected second-quarter earnings, with adjusted earnings per share of $0.87 beating analyst estimates of $0.83, according to Bloomberg data. Adjusted revenue totaled $12.62 billion, slightly surpassing forecasts of $12.55 billion. The 5% net revenue increase was driven by a 6% price rise and favorable product mix, partially offset by a 1% decline in concentrate sales.
Shares of Coca-Cola slipped about 1.2% in premarket trading after the earnings release.
Global unit case volume declined 1% during the quarter, with notable drops in Asia Pacific (-3%), Latin America (-2%), and North America (-1%). These declines were partly offset by a 3% volume gain across Europe, the Middle East, and Africa.
“Overall in Europe … we’ve seen the benefits of some of our more developing markets in the equation,” Murphy said, while noting that developed Western European economies are “performing more like the United States.”
Coca-Cola updated its full-year guidance, projecting adjusted earnings per share growth of 3% over last year’s $2.88. The company anticipates a 1%-2% currency headwind on revenue, but expects organic sales to rise 5%-6% in 2025.
“June turned out to be a disappointing month,” Murphy admitted, citing ongoing tariff uncertainties impacting the second half of the year. “We think we can manage absorbing any of the impacts with the various levers that we have at our disposal. It’s always a local decision as to how to utilize those levers, but right now, it’s something that we factored into our rest-of-year guidance.”
Coca-Cola plans to roll out its new cane sugar beverages in the U.S. this fall, with further details to come. Murphy also suggested consumers might see these products offered in glass bottles, which he described as an “underutilized option” in the U.S. market.
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