Sign up here.
Expanding availability introduces numerous complications. Domestic sugar—as Coca-Cola CEO James Quincey promised to use—is expensive due to the Department of Agriculture’s strict production controls and import restrictions. Levies on sugar have existed since 1789, and the U.S. government began offering farmers financial support in 1981 to stabilize prices. According to the Sweeteners Users Association, domestic sugar costs about 50 percent more than the international market rate.
Additionally, corn enjoys significant U.S. backing. It is the most heavily subsidized crop, with growers receiving approximately $3 billion in direct payments, insurance, and loans. Corn accounts for 30 percent of all agricultural assistance in the country. Promoting Coke made with sugar complicates various policy goals and could increase imports from Mexico.
Moreover, both ingredients conflict with other White House priorities. Although Trump consumes Diet Coke, his Secretary of Health and Human Services, Robert Kennedy, has labeled high fructose corn syrup and sugar as harmful. He aims to prevent low-income Americans from purchasing soda with food assistance funds. These disputes over Coke’s formulation highlight problematic U.S. economic policies.
CONTEXT NEWS
Coca-Cola announced on July 22 its plan to introduce a version of its flagship soda sweetened with U.S. cane sugar instead of high-fructose corn syrup after President Donald Trump stated on July 16 that he had discussed the idea with the company.
Editing by Jeffrey Goldfarb; Production by Pranav Kiran
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Jennifer Saba is a columnist based in New York. Her focus is media, technology, and retail. Prior to joining Breakingviews in 2015, she was a reporter with Reuters news. She began her career in advertising.
— News Original —
Sign up here. n nMaking it more widely available bubbles up a multitude of complications. Homegrown sugar – as Coca-Cola CEO James Quincey vowed to use – is pricey because the Department of Agriculture tightly controls production and limits imports. There have been levies on it since 1789, and the U.S. government started providing farmers with financing in 1981 to help underpin prices. It costs about 50% more today for domestic sugar than what’s sold internationally, according to the Sweeteners Users Association trade group. n nThere’s also the matter of U.S. support for corn. It’s the most subsidized crop in the country, with growers receiving some $3 billion of direct payments, insurance and loans from the government. The feed grain accounts for 30% of all U.S. agricultural assistance. Championing Coke with sugar muddles the various policy objectives while also inviting more imports from Mexico. n nMoreover, both ingredients contradict other White House positions. Although Trump guzzles Diet Coke, his Secretary of Health and Human Services Robert Kennedy has denounced high fructose corn syrup and sugar as poison and wants to prevent low-income Americans from buying soda with their food assistance money. These clashes over Coke’s recipe mainly serve to accentuate distasteful U.S. economic formulas. n nCONTEXT NEWS n nCoca-Cola said on July 22 that it plans to roll out a version of its signature soda sweetened with U.S. cane sugar instead of high-fructose corn syrup after President Donald Trump issued a statement on July 16 saying he had been discussing the idea with the company. n nEditing by Jeffrey Goldfarb; Production by Pranav Kiran n nOur Standards: The Thomson Reuters Trust Principles., opens new tab n nOpinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. n nJennifer Saba is a columnist based in New York. Her focus is media, technology and retail. Prior to joining Breakingviews in 2015, she was a reporter with Reuters news. She began her career in advertising.
— news from Reuters