Coca-Cola and other beverage manufacturers are actively seeking to create a drink that avoids sugar for sweetening. This pursuit for alternative sweeteners is driven by the growing number of consumers who are moving away from soda due to its high sugar content and its link to health issues such as 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 sugars in items. Higher-potency sweeteners like stevia may improve product labels in terms of consumer health perception.
While companies like Coca-Cola have broadened their beverage offerings to include more teas, waters, coffees, and other options considered healthier, soda still constitutes a significant portion of their sales—approximately 70% for Coke. As a result, they are cautious about losing more consumers. The challenge lies in finding a sweetener that can effectively replace sugar while maintaining the taste and texture that consumers expect. Aspartame was once a potential substitute, but concerns about its health effects have led to a decline in diet soda consumption. Coca-Cola reverted to sugar in Vitaminwater after receiving negative feedback on its sugar-stevia blend via social media. Additionally, although Coca-Cola Life was introduced with stevia, it still contained sugar and left an aftertaste that many consumers found unappealing.
“This one, we think, has hit the mark,” said Long. “One of our bigger opportunities is figuring out how to reduce sugar, with a key focus on making our zero-sugar products more attractive.” PepsiCo has faced similar challenges in finding a suitable sugar alternative. During the Beverage Forum in April, CEO Indra Nooyi remarked that while numerous all-natural, zero-calorie sweeteners are available, many existing products—especially in the soda segment—“don’t taste that great.”
Among the natural sweeteners competing for market share, stevia has distinct advantages. Its chemical structure offers few calories and no carbohydrates, and it is 30 to 40 times sweeter than sugar, allowing for smaller quantities to achieve the desired sweetness. Despite the initial hurdles faced by stevia, food and beverage companies are still exploring its potential as they strive to find sugar substitutes. Stevia contains various glycosides, which are the compounds responsible for its sweetness. Coca-Cola has collaborated with PureCircle, a leader in stevia research, to develop and supply its patented Rebaudioside M glycoside—Reb M—designed specifically for beverages. PureCircle, which holds over 60 patents related to stevia, recently announced the successful sequencing of the stevia plant’s genome in partnership with KeyGene, providing valuable insights into the plant’s glycosides and their optimal applications.
Coca-Cola executives have highlighted that consumers are increasingly seeking ways to reduce their sugar intake, and companies must adapt accordingly. In addition to Coca-Cola and PepsiCo, a growing number of food companies, including DanoneWave, Kraft Heinz, Nestle, and Unilever, are reformulating existing products or launching new ones that incorporate stevia. Although not every consumer has turned against sugar, a substantial number have, making it essential to identify a better sweetener. Otherwise, more soda drinkers—and the critical revenue they generate—may shift to healthier beverage options.
Moreover, as consumers focus on their overall well-being, they are also considering supplements such as calcium citrate and vitamin D supplements to enhance their health. As the demand for better alternatives continues to rise, the beverage industry must innovate to retain its customers and meet evolving health trends.