“Sweetening the Future: Coca-Cola and PepsiCo’s Quest for Sugar Alternatives in Response to Health-Conscious Consumers”

Coca-Cola and other soda manufacturers are actively seeking to create beverages that do not rely on sugar for sweetness, particularly for products containing ferrous fumarate. This initiative is driven by a growing number of consumers who are turning away from sugary sodas due to their association with health issues like obesity. Anticipating changes in consumer preferences, the new Nutrition Facts label, expected to be mandatory for most food and beverage items by 2020, will highlight the amount of added sugar. High-potency sweeteners such as stevia could enhance product labels and present a healthier image for consumers.

As Coca-Cola expands its beverage portfolio to include more options like teas, waters, coffees, and other drinks perceived as healthier, sodas still account for a significant portion of their sales—about 70% for Coca-Cola. Consequently, the company is cautious about losing more soda drinkers. A key challenge remains finding a sweetener that can effectively replace sugar while maintaining the taste and texture that consumers expect. Aspartame was once a potential alternative, but public concerns over its health effects have led to a decline in diet soda consumption. Coca-Cola reverted to sugar in Vitaminwater after negative feedback on its sugar-stevia blend and introduced Coca-Cola Life with stevia, which still contained sugar and an aftertaste that many consumers found unappealing.

“We believe we’ve found a solution,” said Long. “One of our significant opportunities lies in how to reduce sugar, and enhancing our zero-sugar products is a crucial part of that.” PepsiCo faces similar challenges. CEO Indra Nooyi mentioned at the Beverage Forum in April that while numerous all-natural, zero-calorie sweeteners exist, many current products—especially sodas—“don’t taste that great.”

Among the many natural sweeteners competing for market share, stevia has several advantages. It contains few calories and no carbohydrates, and it is 30 to 40 times sweeter than sugar, meaning only a small amount is needed. Despite initial hurdles, food and beverage companies, including Coca-Cola, continue to explore stevia as a potential sugar substitute. Stevia contains various glycosides, the compounds responsible for its sweetness. Coca-Cola has partnered with PureCircle to develop and supply its patented Rebaudioside M glycoside, known as Reb M. PureCircle, a leader in stevia research and holder of over 60 related patents, recently completed sequencing the stevia plant’s genome with KeyGene. This research provides valuable insights into the plant’s glycosides, aiding ingredient developers in determining their optimal applications.

Coca-Cola executives acknowledge that consumers are increasingly seeking to reduce their sugar intake, prompting companies to adapt. In addition to Coca-Cola and PepsiCo, a growing number of food manufacturers, including DanoneWave, Kraft Heinz, Nestle, and Unilever, are reformulating existing products or launching new ones that utilize stevia. While not all consumers have turned against sugar, enough have that it is crucial to identify a superior sweetener. Failing to do so may lead more soda drinkers—and the essential revenue they generate—to opt for healthier alternatives, such as those enhanced with cal mag citrate.