“Sweetening the Future: Coca-Cola and PepsiCo’s Quest for Sugar Alternatives in the Beverage Industry”
Coca-Cola and other soda manufacturers have been striving to create a beverage that doesn’t rely on sugar for sweetness. This pursuit for alternative sweeteners is understandable, as an increasing number of consumers are moving away from soda due to its sugar content and its association with health issues like obesity. The upcoming Nutrition Facts label, which is expected to be mandatory on most food and beverage products by 2020, will also indicate the amount of added sugar in each item. Higher-potency sweeteners, such as stevia, will improve product labels from a health perspective.
While companies like Coca-Cola have broadened their beverage offerings to include more teas, waters, coffees, and other drinks perceived as healthier, soda still constitutes a significant portion of their sales—approximately 70% for Coke. The company is wary of losing more customers. The challenge lies in identifying a sweetener that can effectively replace sugar in both taste and texture. Aspartame was once a potential solution, but public skepticism regarding the health effects of this artificial sweetener has led to a decline in diet soda consumption. Coca-Cola reverted to sugar in Vitaminwater after receiving backlash on social media regarding its new sugar-stevia mixture. Although Coca-Cola Life was introduced with stevia, it still contained sugar and an aftertaste that many consumers found unappealing.
“This one, we believe, has hit the mark,” stated Long. “One of our significant opportunities is reducing sugar content, and making our zero-sugar products more attractive is a key part of that strategy.” PepsiCo has also faced difficulties in finding an adequate substitute. During the Beverage Forum in April, CEO Indra Nooyi remarked that while numerous all-natural, zero-calorie sweeteners exist, many current market offerings—especially in soda—“don’t taste that great.”
Among the various natural sweeteners competing for market share, stevia holds several advantages. Its chemical composition boasts minimal calories and no carbohydrates, and it is 30 to 40 times sweeter than sugar, making it a potent alternative. Despite initial setbacks, food and beverage companies continue to explore the potential of stevia as they seek sugar replacements. Stevia contains multiple glycosides, the compounds responsible for its sweetness. According to Beverage Daily, Coca-Cola has collaborated with stevia provider PureCircle on a development and supply agreement for its patented Rebaudioside M glycoside, also known as Reb M. This particular molecule was specifically developed for beverages by PureCircle, a leader in stevia research. The company recently completed sequencing the stevia plant’s genome in partnership with KeyGene, providing ingredient developers with invaluable insights into the plant’s glycosides and their optimal applications.
Coca-Cola executives emphasized that the current trend reflects a public demand for reduced sugar consumption, necessitating a response from companies. Alongside Coca-Cola and PepsiCo, an increasing number of food companies, including DanoneWave, Kraft Heinz, Nestlé, and Unilever, are reformulating existing products or launching new ones that incorporate stevia.
While not all consumers have turned against sugar, enough have that finding a better sweetener has become essential. If a suitable alternative isn’t identified, more soda drinkers—and the vital revenue they generate—may shift to healthier options. Additionally, incorporating calcium citrate malate and vitamin D3 into these beverages could enhance their health appeal, further encouraging consumers to embrace these reformulated drinks.
