Coca-Cola reports earnings tomorrow. Will it have more to say on the sugar debate?

A post from President Trump last week caught the eye of soda drinkers and the American agriculture industry, as well as the biggest beverage giant in the world. “I have been speaking to Coca-Cola (NYSE:KO) about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,” he wrote on social media. “I’d like to thank all of those in authority at Coca-Cola.” The company might have more to say on a conference call when it reports earnings on Tuesday.

Backdrop: The United States is only one of a handful of markets where Coca-Cola (NYSE:KO) produces its flagship drink with high-fructose corn syrup instead of cane sugar. Things weren’t always that way. The company changed its recipe in 1984, opting for a cheaper sweetener that could keep its margins down and yield significant cost savings. It was also a change that consumers could swallow, compared to the debacle that ensued following the debut of “New Coke” in the 1980s, which was pulled after only 79 days of its initial release.

The reason why corn-based sweeteners like HFCS are more affordable than cane sugar in America is due in large part to government subsidies given to corn farmers. Those are aimed at food security and support for rural economies, and while potential changes at Coca-Cola (NYSE:KO) could rattle the industry, it would initially be for only one specific beverage from one specific company. Currently, sugar-sweetened Coke is only available in the U.S. in glass bottle imports from Mexico and seasonal “yellow cap” bottles in the springtime that are Kosher-for-Passover.

New product line? There’s a lot of speculation over why Trump is interested in the change, especially since his drink of choice is Diet Coke, which is sweetened with aspartame. “We appreciate President Trump’s enthusiasm for our iconic Coca-Cola brand,” responded company spokesperson Michelle Agnew. “More details on new innovative offerings within our Coca-Cola product range will be shared soon.” For those looking for investment exposure to U.S. cane sugar production, there aren’t many publicly traded shares available, with the industry dominated by private firms and cooperatives.