
Coca-Cola beats on zero-calorie drinks, higher prices; to launch cane sugar-based drink
Food companies are increasingly lookingto include healthier substitutes as they respond to Health Secretary Robert F Kennedy Jr's Make America Healthy Again campaign.
Last week, President Donald Trump said Coca-Cola had agreed to use real cane sugar in the US.
While there are some slight differences between cane sugar and corn syrup as sweeteners, experts have said that too much of either is not good for consumers.
Coca-Cola already sells Coke made from cane sugar in other markets, including Mexico, and some US grocery stores carry glass bottles with cane sugar labeled "Mexican" Coke.
The switch to cane sugar will also drive up costs for the company, industry analysts have said. Changes in the formulation of the rest of the Coke sold in the US, and other beverages and candies, would involve significant adjustments to supply chains.
Rival PepsiCo, which topped quarterly earnings estimates last week, also said it would use natural ingredients in its products if consumers want it.
Coca-Cola reiterated that the hit to costs due to "global trade dynamics" remained manageable.
The company has said it would look at affordable packaging options such as plastic bottles when Trump imposed a 25% duty on aluminum imports. As of June, tariffs on aluminum imports have doubled to 50%.
Coca-Cola's comparable revenue rose 2.5% to $12.62 billion in the second quarter, beating estimates of $12.54 billion, according to data compiled by LSEG.
Annual comparable earnings per share is expected to be near the top end of its target of a 2% to 3% rise, helped by a weaker dollar.
Volumes fell in North America "due to the continued uncertainty and pressure on some socioeconomic segments of consumers," CEO James Quincey said on a post-earnings call.
Demand for pricey fizzy drinks has remained choppy in recent quarters, especially in developed countries as consumers, especially in lower-income segments, turned more price-sensitive.
Coca-Cola's volumes slipped 1% in the three months ended June 27 after rising 2% each in the previous two quarters, largely due to declines in key markets such as Mexico and India, as well as for its Coca-Cola brand in the US.
Quincey added that a boycott-related hit to demand in the US and Mexico was now largely resolved.
Volumes had fallen in the first half of the year in North America due to Hispanic consumers in the US and Mexico boycotting the company's legacy brands after a viral video of Coca-Cola laying off Latino staff and reporting them to Immigration and Customs Enforcement.
Prices rose 6% overall in the second quarter, led by increases in some inflationary markets.
Coca-Cola's shares have risen 12.5% this year, as of yesterday's close.
Coca-Cola Zero Sugar volume jumped 14%, driven by growth across all geographies, and was a bright spot in the quarter.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


RTÉ News
2 hours ago
- RTÉ News
Iran and Europe begin fresh nuclear talks in Turkey with questions over future UN sanctions
Iran has pushed back on suggestions of extending a UN resolution that ratifies a 2015 nuclear deal as it began the first face-to-face talks with Western powers since Israel and the US bombed it last month. Delegations from Iran, the European Union and the so-called E3 group of France, Britain and Germany, arrived for talks at the Iranian consulate in Istanbul. The European countries, along with China and Russia, are the remaining parties to a 2015 deal - from which the US withdrew in 2018 - that lifted sanctions on Iran in return for restrictions on its nuclear programme. A deadline of 18 October is fast approaching when the resolution governing that deal expires. At that point, all UN sanctions on Iran will be lifted unless a "snapback" mechanism is triggered at least 30 days before. This would automatically reimpose those sanctions, which target sectors from hydrocarbons to banking and defence. To give time for this to happen, the E3 have set a deadline of the end of August to revive diplomacy. Diplomats say they want Iran to take concrete steps to convince them to extend the deadline by up to six months. Iran would need to make commitments on key issues including eventual talks with Washington, full cooperation with the International Atomic Energy Agency, and accounting for 400kg (880 pounds) of near-weapons grade highly enriched uranium, whose whereabouts are unknown since last month's strikes. Minutes before the talks began, Iranian Foreign Ministry spokesperson Esmaeil Baghaei told the state news agency IRNA that Iran considered talk of extending UN Security Council Resolution 2231 to be "meaningless and baseless". The United States held five rounds of talks with Iran prior to its airstrikes in June, which US President Donald Trump said had "obliterated" a programme that Washington and its ally Israel say is aimed at acquiring a nuclear bomb. However, NBC News has cited current and former US officials as saying a subsequent US assessment found the strikes destroyed most of one of three targeted Iranian nuclear sites, but that the other two were not as badly damaged. Iran denies seeking a nuclear weapon.


RTÉ News
4 hours ago
- RTÉ News
Countries who refuse US beef are 'on notice' says Trump
US President Donald Trump has said countries who refuse American beef are "on notice", after Australia announced that it would be relaxing import restrictions on the product. Australia said it would loosen biosecurity rules for US beef, something analysts predicted would not significantly increase US shipments because Australia is a major beef producer and exporter whose prices are much lower. "We are going to sell so much to Australia because this is undeniable and irrefutable Proof that US Beef is the Safest and Best in the entire World," Mr Trump said in a post on Truth Social. "The other Countries that refuse our magnificent Beef are ON NOTICE," the post continued. Mr Trump has attempted to renegotiate trade deals with numerous countries he says have taken advantage of the United States – a characterisation many economists dispute. "For decades, Australia imposed unjustified barriers on US beef," US Trade Representative Jamieson Greer said in a statement, calling Australia's decision a "major milestone in lowering trade barriers and securing market access for US farmers and ranchers." Australia is not a significant importer of beef but the United States is, and a production slump is forcing it to step up purchases. Last year, Australia shipped almost 400,000 metric tons of beef worth $2.9 billion to the United States, with just 269 tonnes of US product moving the other way. Australian officials say the relaxation of restrictions was not part of any trade negotiations but the result of a years-long assessment of US biosecurity practices. Canberra has restricted US beef imports since 2003 due to concerns about bovine spongiform encephalopathy (BSE), or madcow disease. Since 2019, it has allowed in meat from animals born, raised and slaughtered in the US but few suppliers were able to prove that their cattle had not been in Canada and Mexico. On Wednesday, Australia's agriculture ministry said US cattle traceability and control systems had improved enough that Australia could accept beef from cattle born in Canada or Mexico and slaughtered in the United States. The decision has caused some concern in Australia, where biosecurity is seen as essential to prevent diseases and pests from ravaging the farm sector. "We need to know if (the government) is sacrificing our high biosecurity standards just so Prime Minister Anthony Albanese can obtain a meeting with US President Donald Trump," shadow agriculture minister David Littleproud said in a statement. Australia, which imports more from the US than it exports, faces a 10% across-the-board US tariff, as well 50% tariffs on steel and aluminium. Mr Trump has also threatened to impose a 200% tariff on pharmaceuticals. Asked whether the change would help achieve a trade deal, Australian Trade Minister Don Farrell said: "I'm not too sure." "We haven't done this in order to entice the Americans into a trade agreement," he said. "We think that they should do that anyway."


Irish Examiner
4 hours ago
- Irish Examiner
Diplomats to meet in Turkey to discuss Iran's nuclear programme
Iranian and European diplomats are set to meet in Istanbul on Friday to embark on the latest drive to unpick the deadlock over Tehran's nuclear programme. Representatives from the UK, France and Germany, known as the E3 nations, will gather at the Iranian consulate building for the first talks since Iran's 12-day war with Israel in June, which involved US bombers striking nuclear-related facilities. The talks are centred on the possibility of reimposing sanctions on Iran that were lifted in 2015 in exchange for Iran accepting restrictions and monitoring of its nuclear programme. The return of sanctions, known as a 'snapback' mechanism, 'remains on the table', according to a European diplomat speaking on condition of anonymity due to the sensitivity of the talks. Donald Trump pulled the US out of the 2015 deal to lift sanctions on Iran (Julia Demaree Nikhinson/AP) 'A possible delay in triggering snapback has been floated to the Iranians on the condition that there is credible diplomatic engagement by Iran, that they resume full co-operation with the IAEA (International Atomic Energy Agency), and that they address concerns about their highly-enriched uranium stockpile,' the diplomat said. European leaders have said sanctions will resume by the end of August if there is no progress on containing Iran's nuclear programme. Tehran, meanwhile, has said the US, which withdrew from the 2015 deal during President Donald Trump 's first term, needs to rebuild faith in its role in negotiations. Deputy foreign minister Kazem Gharibabadi said Iran's engagement was dependent on 'several key principles' that included 'rebuilding Iran's trust – as Iran has absolutely no trust in the United States'. In a social media post on Thursday, he also said the talks should not be used 'as a platform for hidden agendas such as military action2. Mr Gharibabadi insisted that Iran's right to enrich uranium 'in line with its legitimate needs' be respected and sanctions removed. Iran has repeatedly threatened to leave the Nuclear Non-proliferation Treaty, which commits it to refrain from developing nuclear weapons, if sanctions return. Friday's talks will be held at the deputy ministerial level, with Iran sending deputy foreign minister Majid Takht-e Ravanchi. A similar meeting was held in Istanbul in May. The identity of the E3 representatives were not immediately clear but the European Union's deputy foreign policy commissioner is expected to attend.