Carcinogenic or not? WHO decision on aspartame would have this impact on Coca-Cola

Coca Cola will only see a limited impact if the world health agency classifies the sweetener artificial substance used in its Diet Coke, aspartame, as a possible carcinogen, thanks to its scale of production, analysts said on Friday.

The classification of the popular additive – scheduled for July – by the cancer research arm of the World Health Organization (WHO) could make consumers, food companies, retailers and restaurants decide whether to fight back or find alternatives.

But for Coca-Cola, whose low-calorie products accounted for a third of its total volumes sold by 2022, analysts said switching to a natural sweetener could be easier than many other companies that use aspartame.

“Coca-Cola has one of the best production and distribution systems in the world (…) which has successfully overcome many obstacles in the past, such as sugar taxes and associated reformulations“, said Charlie Higgsassociate partner of redburn ltda consumer staples research company.

In the past, beverage manufacturers such as Coca Cola and PepsiCo have adjusted their ingredient composition to comply with the policy changes.

In 2012, the companies modified their manufacturing process for the caramel coloring in their soft drinks to meet the requirements of a California ballot initiative that aims to limit people’s exposure to toxic chemicals.

the market analyst Grzegorz Drozdzof the investment firm Conotoxia LtdHe said the aspartame switch could affect Coca-Cola’s short-term profitability, but he doesn’t see a sharp drop in its long-term growth due to its production history.

However, PepsiCo could gain an advantage over its rival, having previously moved away from aspartame to a mix of sucralose and acesulfame potassium, he said CFRA Research.

The company first replaced the additive in some US diet soft drinks in 2015, but brought it back in some products a year later. It phased out aspartame again in 2020.

Source: Reuters