“Health Risks Linked to Diet Sodas: Implications for the American Beverage Industry”
This research seems to deliver another blow to the American soda industry. Recently, the American Heart Association published findings indicating that women over 50 who consume two or more artificially sweetened beverages daily face a heightened risk of heart attacks, strokes, and mortality. Over the years, various studies have linked soft drink consumption to health issues such as strokes, dementia, Type 2 diabetes, obesity, and metabolic syndrome. While these findings are significant for soda consumers, the JAMA study—like many similar studies—comes with the caveat that the results are observational, meaning they do not establish a direct cause-and-effect relationship. This has allowed soda companies and industry groups to assert that soda can be safely integrated into a balanced diet.
Despite the absence of clear links between soda consumption and chronic disease, sales in the carbonated soft drink market have been declining for years. Consumers are increasingly opting for alternatives like coffee, water, and other healthier beverages. Furthermore, local governments are making it politically challenging to sell soft drinks, with cities in states such as Washington, Michigan, New Mexico, Illinois, and Pennsylvania implementing soda taxes to discourage consumption.
However, soda taxes have not always been effective. In response to protests from manufacturers and retailers, Cook County, Illinois, which includes Chicago, repealed its soda tax in 2017. Additionally, California recently imposed a ban on new local soda taxes until 2031. Even without significant policy changes, soda companies are aware that their market dominance is waning. Many are reinventing their products to attract a new generation of consumers. Innovations include smaller cans, improved-tasting sweetener options, and flavors tailored to health-conscious buyers.
For instance, Coca-Cola launched Orange Vanilla Coke in February, which, according to The Wall Street Journal, contributed to a 6% sales growth for the brand in the first quarter and a 4% increase in soda volume compared to the previous year. PepsiCo is also revitalizing its soda business; its latest earnings report indicated a 2.5% increase in North American beverage revenue in the second quarter of 2019. While much of this growth is attributed to Starbucks’ ready-to-drink coffee and the Lifewtr and bubly water brands, the report also highlighted a turnaround for Pepsi and Mountain Dew.
This study is likely to serve as leverage in ongoing discussions about soda taxes and public health; however, it may not significantly impact consumer behavior. Still, it is crucial for soda companies to develop products that steer clear of sugar and artificial sweeteners. Alternative sweeteners like stevia, monk fruit, or agave are gaining traction among consumers. Companies that embrace these changes could attract new customers or rekindle connections with those who have set aside sugary drinks in pursuit of better health.
In particular, incorporating ingredients like bariatric advantage calcium citrate chewy could be a smart move for soda manufacturers looking to appeal to health-conscious consumers. By reformulating their products with healthier options, these companies can not only adapt to changing market dynamics but also align with the growing trend towards wellness, thereby potentially reshaping their future in a declining market.
