MW 'If I was writing the checks at Coke, I wouldn't write the check for this,' one expert says about cane-sugar Coke

By Charles Passy

The new Coca-Cola offering will soon vie against the classic version made with high-fructose corn syrup

Call it old Coke vs. new Coke, version 2.0.

At least that's how some food and beverage experts are viewing what lies ahead for Coca-Cola (KO) now that the company has announced it will introduce a version this fall of its signature beverage made with cane sugar, much in line with what President Donald Trump shared last week. The cane sugar-based Coke will be offered alongside the standard Coke, which has been made for decades with high-fructose corn syrup.

The situation somewhat echoes what happened in the '80s, when Coca-Cola introduced a new version of its iconic sip, only to face enormous consumer backlash. That led the company to bring back the old version, dubbed Coca-Cola Classic, which was sold alongside the new Coke. Eventually, the classic Coke won out and new Coke was discontinued.

That saga shows the challenges a company faces when it pits two versions of its key product against each other. And some experts say the results could be no less problematic for Coca-Coca this time around with the rollout of cane sugar-based Coke.

"If I was writing the checks at Coke, I wouldn't write the check for this," said Phil Lempert, a consumer-products analyst known as the "Supermarket Guru."

Lempert points to numerous issues that Coca-Cola could face, beginning with the fact it will have to spend large sums to market the new product - and he thinks it will still be a tough sell for established Coke drinkers who are fine with the existing offering. Add in fact the cane sugar-based Coke will likely cost more - that's why Coca-Cola and other food and drink companies switched from cane sugar to high-fructose corn syrup years ago - which could make it an even tougher sell, Lempert said.

Others see potential for the new Coke to find a foothold in the market as a niche product that complements the existing Coke. They note there's already evidence of consumer demand for a cane sugar-based version of the soft drink by virtue of the fact that imported Mexican-made Coke, which is produced using cane sugar, is highly sought after by some Coke fans in the U.S., despite it being a pricier product.

And that's to say nothing of the fervor that accompanies the arrival of Passover when Coca-Cola releases a cane sugar-based version to adhere with the Jewish dietary laws tied to the spring holiday. But non-Jewish customers who are fans of Mexican Coke are often the ones buying the Passover edition.

Considering the U.S. demand for Mexican Coke alone, Coca-Cola "may actually have a market" for the new product, said William Grand, a retail expert who is the CEO of NutriFusion, a food company.

Some also wonder if demand for a cane sugar-based Coke will be additionally fueled by Trump's support for the idea - "It's just better!" he said of the taste - so his often-ardent followers may opt to buy the product almost purely for political reasons.

Taylor Foxman, founder of the Industry Collective, an advisory firm that works in the food, beverage and cannabis sectors, said it can be risky for a newer company to put out products that compete with each other because of the need to capture the public's initial attention with just one or two signature items.

But for an established company like Coca-Cola, adding a product is simply a way to give consumers more options, Foxman said.

Coca-Cola didn't respond to a MarketWatch inquiry about the launch of its cane sugar-based version. But during an earnings call on Tuesday, Coca-Cola Chief Executive James Quincey said the new offering fits into the company's desire to experiment.

"It takes a long time to build a new franchise with consumers, but you've got to try things," he said.

Steve Zagor, a food-industry consultant who also teaches at Columbia University, agrees that experimentation is key for a company like Coca-Cola that's striving to tap new consumers.

It's no secret that soda consumption has declined over the years, after all, and health concerns related to high-fructose corn syrup have become a hot topic, with Robert F. Kennedy Jr., head of the Department of Health and Human Services, vowing to ban the sweetener.

Zagor said that offering a cane sugar-based version allows Coca-Cola to see if there's demand for such a product, with the idea it could expand the idea to other beverages in its lineup. "It's a great way to put your toe in the water," he said.

Coca-Cola isn't alone in the soda world when it comes to recent product additions. PepsiCo (PEP) just announced it was launching Pepsi Prebiotic Cola, a soft drink designed to give soda drinkers a healthier alternative. Aside from the fact it's made with prebiotic fiber, the new drink also uses cane sugar instead of high-fructose corn syrup.

Some might question if PepsiCo is competing with itself here because the prebiotic soft drink is not dissimilar to the offerings from Poppi, a beverage brand recently acquired by the company.

A PepsiCo spokesperson said that there's room for both Pepsi Prebiotic Cola and Poppi products on store shelves.

The products "serve different consumer preferences and cohorts," the spokesperson said.

-Charles Passy

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July 22, 2025 18:09 ET (22:09 GMT)

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