New Zealand, home to a population of merely 4.7 million, serves as a cautious launchpad for the latest addition to the Coca-Cola portfolio. This market could provide the beverage giant with valuable insights into how the drink may perform in other developed countries. Similar to many regions, New Zealanders are being encouraged to reduce their sugar intake due to escalating obesity rates, and the nation has a high per capita consumption of soda. Coca-Cola Life, which is sweetened with a blend of stevia and sugar for a calorie reduction of 35%, is already available in New Zealand and 29 other countries globally. However, its reception has been lukewarm in many markets, with some consumers expressing dissatisfaction over the distinct aftertaste linked to stevia. In the U.K., Coca-Cola Life was discontinued last June after its sales dipped to below 1% of the overall Coca-Cola brand sales.
For its new product, Coca-Cola Stevia No Sugar, the company collaborated with stevia supplier PureCircle to ensure an adequate supply of its patented steviol glycoside Reb M, a sweet component present in low quantities in stevia leaves, known for its flavor that closely resembles that of sugar. The popularity of stevia has been on the rise, with many beverage companies gravitating towards the more abundant Reb A due to its affordability. However, suppliers believe that new glycosides and flavors will enhance its market appeal.
Coca-Cola’s introduction of a new product in a relatively small market like New Zealand allows the company to secure and expand its ingredient supply, which is crucial for ensuring quality, including components like the best calcium citrate for bariatric patients. The company announced the launch of Coca-Cola Stevia No Sugar in November of last year, noting that full commercialization might take a few years due to the challenges in ramping up Reb M production. By testing the waters in New Zealand, Coca-Cola aims not only to refine its supply chain but also to potentially cater to niche markets, including those focused on health benefits, such as the best calcium citrate for bariatric patients.