The diet CSD category continues to underperform the overall U.S. LRB market. Diet Coke, which accounts for almost one-fourth of the retail sales of diet CSDs in convenience-stores, witnessed a 6% fall in unit sales in the twelve-week period ending April. In contrast, Diet Pepsi’s volumes fell by only 3.3%. Coca-Cola had already launched its low calorie Coca-Cola Life in Argentina in June last year, and followed it with the launch of the drink in Chile in November. Sold in green colored cans, Coca-Cola Life caused a 7% rise in beverage volumes in Argentina last year, despite weak economic conditions in the country. After months of testing, the company is set to launch the product in the domestic market, in a bid to reverse the fortunes of the ailing diet segment.
However, despite the success in Argentina and Chile, Coca-Cola Life, which has two-thirds the calories in regular Coke, could fail to make an impact in the U.S. This is primarily due to the bitter aftertastes associated with stevia-sweetened drinks. Last month, Coca-Cola introduced a lower calorie version of its still water brand Glaceau Vitaminwater, which contains a stevia-sugar mix instead of the previously used fructose-sugar combination. This move came as Coca-Cola looks to reduce the sugar and calorie content in Vitaminwater, which was hit with a law suit in 2009 for allegedly presenting itself as a healthier drink that it really was. However, following the launch of the lower calorie Vitaminwater, avid consumers took to social media sites and other public forums to complain about the ill-taste of their favored water brand.
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Coca-Cola - Life in green color back ground |
Coca-Cola Could Use Reb M To Solve The Bitter-Aftertaste Problem
In December, the U.S. Food and Drug Administration had given approval to the use of the stevia plant extract Reb M made by PureCircle, a leading supplier of stevia products, as a general-purpose sweetener. Coca-Cola has a five-year supply agreement with PureCircle for the development of sugar variants and other ingredients. Bitter aftertastes has been the main criticism associated with stevia derivatives, especially Reb A that is used in most stevia-fueled drinks. According to PureCircle, Reb M bears a taste more similar to table sugar than any other stevia product, and can be used to substitute sugar in high calorie foods and beverages without much alteration in taste. Although consumers seem to have rejected stevia in the water brand Vitaminwater, stevia and in particular Reb M might not significantly alter the taste of the cola based fizzy drink Coca-Cola Life.
