Sheinbaum Urges Coca-Cola to Increase Use of Mexican Cane Sugar

President Claudia Sheinbaum urged The Coca-Cola Company to increase the use of Mexican cane sugar in soft drink production instead of imported fructose, seeking to support the domestic sugar industry amid falling prices and rising sweetener imports. The proposal reflects broader policy efforts to strengthen national agricultural supply chains while the beverage sector navigates higher excise taxes, evolving consumer preferences and sustainability requirements. 

President Claudia Sheinbaum addressed issues related to sugar use in beverages, as well as water consumption and recycling in production plants, during a meeting with executives from The Coca-Cola Company. The president explained that during the meeting, held earlier this week, she raised concerns about the growing use of fructose syrup, much of it imported, in the production of soft drinks instead of cane sugar produced in Mexico. In this context, Sheinbaum said she proposed meeting with companies in the sector to review how much Mexican-origin sugar could once again be incorporated into soft drink production.

“I asked them about soft drinks, which are made with a lot of fructose, most of which is imported, and which increasingly use less sugar produced in Mexico. Even when they use cane sugar, the soft drink tastes different,” Sheinbaum said. The topic of Coca-Cola made with cane sugar has resurfaced repeatedly in recent years, as many consumers argue that it has a better flavor than versions sweetened with corn syrup and is perceived as a more authentic or less artificial product.

Mexican Coke, as the cane sugar version is popularly known, has also created a premium market in the US, where the beverage has been sold in retail chains such as Costco and Sam’s Club since 2009 in 350ml to 500ml glass bottle formats. The product’s popularity is such that in July last year, Donald Trump announced that Coca-Cola would begin using cane sugar again in its products, to which the company responded that more details regarding product innovations would be shared soon.

Sheinbaum explained that the goal of the proposal is to support Mexico’s sugar sector, particularly amid the current environment of low domestic sugar prices. In recent years, she noted, the soft drink industry has increased its use of fructose, a sweetener largely imported from abroad, which has led to a steady reduction in the use of Mexican cane sugar. According to industry representatives, imports of corn syrup have grown exponentially in recent years. While they initially stood at around 200,000t/y, they now exceed 1.2Mt/y.

Challenges facing the national industry are also linked to both legal and illegal imports, even though Mexico is largely self-sufficient in sugar production. Claudia Fernández, Executive President, National Chamber of the Sugar and Alcohol Industry (CNIAA), highlighted that between January and October 2025 more than 350,000t of sugar entered the country through so-called technical smuggling, triggering a sharp decline in prices. This situation has resulted in losses of MX$25 billion for the sector, while sugarcane producers alone have seen their income reduced by MX$15 billion.

During the meeting with Coca-Cola executives, the issue of taxes applied to sugary beverages was not discussed. Under the newly appointed IEPS tax, the price of soft drinks could increase by up to MX$3.08/L. However, the main Coca-Cola bottlers in Mexico, such as Coca-Cola FEMSA and Arca Continental, have indicated that the industry is currently undergoing a period of adjustment driven by regulatory changes, fiscal pressures and evolving consumer preferences.

In response, companies have promoted strategies focused on beverages with reduced sugar content or no calories, while also strengthening returnable packaging formats and presentations that help maintain competitive prices in the market. Industry executives say the goal is to adapt to a more complex consumption environment, where rising taxes and inflation could affect sales volumes in the coming years. At the same time, they emphasized their willingness to continue dialogue with Mexican authorities to find mechanisms that balance public health policies with the economic viability of the soft drink industry.

Sheinbaum also noted that excessive sugar consumption is harmful and emphasized that the issue should be analyzed based on scientific studies and recommendations from public health experts. Another topic discussed during the meeting was water management at the company’s industrial plants. Coca-Cola representatives presented information on their water recycling processes and stated that the water discharged from their operations meets standards higher than those established by Mexican environmental regulations.

The president added that any new industrial plant must comply with environmental impact assessments, which are primarily processed at the state level. These evaluations include measures related to water management, recycling and compliance with environmental regulations. Sheinbaum also noted that the locations of the new facilities that form part of the company’s investment plan in Mexico will be announced at a later date.

The Coca-Cola Company recently announced a US$6 billion investment in Mexico. While details on the allocation and timeline have not yet been disclosed, the announcement comes as the country prepares to co-host the 2026 FIFA World Cup, an event executives expect to boost consumer engagement and demand for beverages in the Mexican market.