Shares of high fructose syrup producer ADM tumble after Trump says Coca-Cola agrees to use real cane sugar
"I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so. I'd like to thank all of those in authority at Coca-Cola," the president wrote in a Truth Social post published Wednesday.
"This will be a very good move by them — You'll see. It's just better!" Trump also wrote.
In premarket trading, ADM shares were recently down nearly 3%. But the stock tumbled as much as 6% on the comments. Other related stocks also fell, including global ingredients provider Ingredion, which lost more than 7%.
The move comes as the stock has seen gains over the past few months, having risen about 13% over the last three. It's also up nearly 7% year to date.
When asked about Trump's announcement, Coca-Cola did not explicitly agree to the change.
"We appreciate President Trump's enthusiasm for our iconic Coca-Cola brand," the company said in a statement. "More details on new innovative offerings within our Coca-Cola product range will be shared soon."
Coca-Cola shares were marginally higher in the premarket Thursday, rising 0.3%. Shares have also risen more than 11% year to date, outperforming the broader market.
Meanwhile, Corn Refiners Association, an industry trade group, issued a statement warning about the potential job losses that could follow such a switch.
"Replacing high fructose corn syrup with cane sugar doesn't make sense," John Bode, the group's president and CEO said. "President Trump stands for American manufacturing jobs, American farmers, and reducing the trade deficit. 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."
The Trump administration has previously called on food companies to reformulate products, with Health and Human Services Secretary Robert F. Kennedy Jr. telling executives earlier this year that he wants "the worst ingredients" out of food.
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