Aspartame: Coca-Cola will be little affected by WHO decision – 06/30/2023 – Market
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Coke will have only limited impact if the world health agency classifies the artificial sweetener used in its Coke Zero, aspartame, as a possible carcinogen, thanks to its scale of production, analysts said on Friday.
Such a rating for aspartame by the World Health Organization’s (WHO) cancer research arm in July could prompt consumers, food companies, retailers and restaurants to decide whether to react or find alternatives.
But for Coke, whose low-calorie products made up a third of its total sales volume in 2022, analysts say the transition to a natural sweetener could be easier than for many other companies that use aspartame.
“Coca-Cola has one of the best production and distribution systems globally… and has overcome many obstacles in the past, such as sugar taxes and associated reformulations,” said Charlie Higgs, associate partner at the research firm Coca-Cola. Redburn consumer products.
In the past, beverage manufacturers such as Coca-Cola and PepsiCo have adjusted the composition of their ingredients to comply with ever-evolving policy changes.
In 2012, companies modified the process for making the caramel color in their soft drinks to meet requirements of a California initiative aimed at limiting people’s exposure to toxic chemicals.
Market analyst Grzegorz Drozdz of investment firm Conotoxia said the aspartame transition could affect Coke’s short-term profitability, but he doesn’t see a sharp decline in its long-term growth given its production history.
However, PepsiCo may gain an advantage over its competitor, as it previously switched from aspartame to a blend of sucralose and acesulfame potassium, according to CFRA Research.
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