• Coca-Cola is set to launch a cane sugar version of its classic soda in the U.S. this fall.
• The decision follows advocacy from President Trump and Health Secretary Robert F. Kennedy Jr.
• Quarterly earnings showed Coca-Cola beat revenue expectations despite declining volumes.
• Higher prices have offset decreases in consumption as consumers become more price-sensitive.

Coca-Cola announced plans to introduce a cane sugar version of its classic soda in the U.S. this fall, responding to advocacy from President Trump, who claimed to have influenced the company. Trump expressed on social media that Coca-Cola "agreed to do so," emphasizing that the change would be "better" for consumers, according to SCMP and Channel News Asia.

This latest move by Coca-Cola comes on the heels of the company's second-quarter earnings report, where it reported a 2.5% rise in revenue, attributed to increased pricing despite a 1% drop in total case volumes. CEO James Quincey noted that demand for zero-calorie drinks remains strong, highlighting the successful sales of Coca-Cola Zero Sugar, which rose by 14%, according to Reuters and BBC.

The decision to use cane sugar is part of a larger push for healthier ingredients in response to public health advocacy, especially from Health Secretary Robert F. Kennedy Jr., who has also criticized high-fructose corn syrup (HFCS). According to industry analysts, while the switch may cater to consumer preferences, it could also lead to increased production costs and supply chain changes, reports Le Monde and NPR.

Amidst this backdrop, Coca-Cola also faces challenges with declining sales in critical markets, including North America and Mexico, primarily due to economic pressures causing consumers to be more price-sensitive. Recent boycotts influenced by social media also temporarily affected sales among Hispanic consumers, though these impacts have reportedly been resolved, according to Reuters and Reuters.