In a social media post on Wednesday, President Donald Trump announced that Coca-Cola (NYSE: KO) had agreed to use cane sugar in its beverages distributed in the U.S.
The company has not yet posted any official updates, and KO stock remained stable in the hours following the news. However, Coca-Cola remains a cornerstone in the consumer staples sector, backed by decades of brand strength, consistent performance, and strong dividends.
Should you invest in Coca-Cola?
At press time, KO shares were trading at $69.37, up 0.14% in pre-market.
While investors are eagerly expecting to see whether Trump’s announcement will have an effect on the stock, the reality is that Coca-Cola continues to outperform in the sector as it is, serving some 600 million consumers in 31 countries.
For instance, the company posted a 6% organic sales growth in Q1 2025, outperforming its chief competitor, Pepsi (NASDAQ: PEP), which reported a 1.2% increase in the same metric.
Likewise, its long record of annual dividend increases, now exceeding 60 years, cements Coca-Cola’s reputation as a Dividend King, even if the current yield of 2.80% sits near the low end of its historical range.
To put things into perspective, Warren Buffett’s investment company, Berkshire Hathaway (NYSE: BRK.B), holds roughly 400 million KO shares and earns $816 million annually in dividends.
How did the sugar industry react?
Shares of Archer Daniels Midland (NYSE: ADM) and Ingredion (NYSE: INGR), two of the largest publicly traded corn processors, dropped 6.3% and 8.9%, respectively, in after-hours trading.
John Bode, chief executive of the Corn Refiners Association, made a statement on the official website, saying:
“Replacing high fructose corn syrup with cane sugar doesn’t make sense…. Replacing high fructose corn syrup with cane sugar would cost thousands of American food manufacturing jobs, depress farm income, and boost imports of foreign sugar, all with no nutritional benefit.”
Trump’s announcement comes as his health secretary, Robert F Kennedy Jr, continues to criticize highly processed foods.
While Kennedy has attacked high-fructose corn syrup, his stance regarding sugar in general has also been aggressive, as he has blamed it for obesity epidemics.
The market thus remains uncertain, with more official updates and confirmations pending from all parties involved.
Featured image via Shutterstock
