Will Artificial Sweeteners Help or Hurt Cola Companies?

PepsiCo and Coca-Cola, the world’s two leading cola companies, are both exploring new sweeteners to combat volume losses in the soda category. Pepsi is working on a substance called X617 allowing for reduced use of high fructose corn syrup and lower calorie totals. Coke has turned to stevia producer Pure Circle for the sweetener Reb-X. These attempts at sugar reduction are not only a way to chase lost sales, but attempt to change consumers’ mind about cola, which has declined in volume in North America due to the link between high sugar content and obesity. It remains to be seen if this can be accomplished, as consumers trust artificial sweeteners less and less.

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