Latest news with #John Murphy
Yahoo
6 days ago
- Business
- Yahoo
Coca-Cola CFO says the company will launch Trump-backed cane sugar soda: ‘He is a big supporter of the option'
is launching a cane sugar version of its flagship soda in the U.S., with CFO John Murphy confirming to Fortune that President Trump has endorsed the initiative that has been in development for 12-18 months. The move comes as the beverage giant works to address recent sales challenges in America, including lingering effects from a viral misinformation campaign and affordability pressures on lower-income consumers. Coca-Cola is moving forward with plans to launch a cane sugar version of its flagship soda in the U.S. market, with chief financial officer John Murphy confirming that President Donald Trump has endorsed the initiative following his recent social media claims. In an interview with Fortune, Murphy said the cane sugar variant 'has been in our pipeline for some time' and typically requires 12-18 months from development to launch. 'He is a big supporter of the option,' Murphy said of Trump. 'He has heard about it and is a big fan of the option. It's certainly been well reported.' Pressed for specifics on whether the cane sugar Coke will channel the 'Mexican Coke' model—popular in the U.S. for its glass bottles and distinctive taste—Murphy said: 'I think for commercial reasons, I'm going to wait until the U.S. team is ready to divulge all the details, so more to come on that in a couple weeks.' Murphy emphasized that expanding product options reflects broader market demand: 'Here in the U.S. there is just so much demand for variants and new options on both existing and the new. This [Coke made with cane sugar] is an option for the Coke portfolio and one we're excited about.' Fake viral TikTok video hit Coke sales The announcement comes as Coca-Cola navigates a challenging market environment. Coke reported second quarter results for 2025 on Tuesday, showing modest revenue growth driven by pricing and mix, significantly higher operating income and margins, and strong brand engagement despite a small global volume decline. Murphy attributed recent softness in U.S. and Latin America sales to two primary factors: lingering effects from a viral misinformation campaign and pressure on lower-income consumers. A false TikTok video that circulated in February claimed the company was collaborating with the Department of Homeland Security on deportations of Hispanics from the U.S. to Mexico. 'It was clearly false, but it went viral and for a period of six weeks or so, it had a significant short-term impact on the business in Texas, California, and in Mexico,' Murphy explained. The company has been recovering from that incident, but Murphy noted that affordability remains a challenge for lower-income consumers. 'While the U.S. consumer has been reported overall as resilient, there is a segment of the population, the lower income segment, that is under pressure given the cumulative impact of price increases on their household basket over the last two to three years,' he said. Coke pushing into AI The company is also accelerating its use of artificial intelligence across operations. 'AI is here, we see it positively impacting our end-to-end business,' Murphy said, noting applications in supply chain, innovation, marketing and finance. 'We're in the early stages of AI being part and parcel of how companies will operate to raise the overall performance bar.' The secret to working for 37 years at Coca-Cola Murphy, who is approaching his 37th anniversary with Coca-Cola next week, credited his longevity to two principles established by former longtime Chairman and CEO Robert Woodruff. Quoting Woodruff's philosophy, he said: 'One, which is very relevant to today's work, is that the world belongs to the discontented. So I think staying curious and, to some degree, unhappy with wherever you are is a great motivator to do more. 'And the second, which is maybe my favourite quote of his; there's no limit to what a person can do if they don't mind who gets the credit. I think it's a wonderful piece of advice for anybody, whether it's year one or year 37, to take on board, and if you live your life against those two quotes, I think you can survive just about anywhere.' This story was originally featured on
Yahoo
22-07-2025
- Business
- Yahoo
Coca-Cola confirms plans for new cane sugar soda in US market after Trump touts 'REAL Cane Sugar' Coke
Coca-Cola (KO) said drinks with real cane sugar are coming to its US portfolio this fall, but the high fructose corn syrup that is a staple in its current lineup is still here to stay. "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 confirmation from Coca-Cola comes less than a week after President Trump took to social media to announce the company would be using "REAL Cane Sugar" in its drinks in the US. At the time, the company said it appreciated the president's enthusiasm for its drinks. On Tuesday, Coca-Cola reported earnings for its second quarter that topped forecasts, with adjusted earnings per share coming in at $ 0.87, higher than the $0.83 analysts had expected, according to Bloomberg data. Adjusted revenue in the quarter tallied $12.62 billion compared to forecasts for $12.55 billion. The company said its 5% increase in net revenues were driven by a 6% increase in prices and its mix of goods sold, along with a 1% decline in concentrate sales. Coke shares were down about 1.2% in premarket trade following the results. Global unit case volume fell 1% in the quarter, led by a 3% decline in Asia Pacific. Volumes declined 2% in Latin America and 1% in North America. A 3% volume increase growth in Europe, Middle East, and Africa offset the declines. "Overall in seen the benefits of some of our more developing markets in the equation," Murphy said. Murphy added, however, that developed economies in Western Europe were "performing more like the United States." The company also updated its guidance, saying it now expects adjusted earnings per share to rise 3% against the $2.88 it reported a year ago. Its revenue for the year is now expected to face a 1%-2% currency headwind, with organic sales still forecast to rise 5%-6% for the year. "June turned out to be a disappointing month," Murphy said, with tariff uncertainty continuing to create uncertainty into 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 your guidance." As for when its cane sugar products hit the shelves in the US, the company expects this to happen in the fall, with more details to follow. US consumers may also see this new mix in a glass bottle, which Murphy called an "underutilized option" in the US market. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
