Wednesday, January 28, 2015

PepsiCo Expands Distribution of Stevia-Sweetened Cola

via WallStreetJournal


Pepsi TrueENLARGE
Pepsi True PHOTO: PEPSICO/ASSOCIATED PRESS
The stevia cola wars are slowly heating up as PepsiCo Inc. and rivalCoca-Cola Co. try to tap growing consumer thirst for natural sweeteners.
PepsiCo confirmed Monday it is starting a limited rollout of stevia-sweetened Pepsi True in stores in Denver, Minneapolis and Washington this week after launching the reduced-calorie cola on Amazon.com last October.
The expansion beyond online sales follows in Coke’s footsteps, which launched stevia-sweetened Coca-Cola Life in a small number of U.S. stores last August before expanding it nationally last November.
Beverage Digest, a trade publication, tweeted PepsiCo’s expanded distribution plans earlier Monday.
PepsiCo and Coke are hoping the zero-calorie sweetener, derived from the stevia plant, will lure back some consumers after a decadelong decline in U.S. soda volumes. Many calorie-conscious Americans have scaled back on regular soda, which is typically sweetened with high-fructose corn syrup. Growing numbers also are dropping diet soda because of health concerns over artificial sweeteners like aspartame.
Stevia can leave a bitter aftertaste and Coke and PepsiCo continue to experiment with formulations. Pepsi True and Coca-Cola Life are both sweetened with a mix of stevia and cane sugar.
Pepsi True and Coca-Cola Life both feature green-colored packaging to play up the use of natural sweeteners. U.S. store sales of natural sweeteners including agave, monk fruit and honey have risen in recent years and a growing number of consumers say they try to avoid high-fructose corn syrup, which they view as less natural than traditional sugar.
Pepsi True has 40% fewer calories than regular Pepsi. It will be sold in 10-ounce cans and 12-ounce glass bottles in the three cities, in addition to the 60-calorie, 7.5-ounce cans already sold online at Amazon.com and Walmart.com.
Coca-Cola Life has 35% fewer calories than regular Coke. In addition to the 60-calorie, 8-ounce glass bottles launched last year, it is now also available in 12-ounce cans and 20-ounce bottles nationally.
Andrea Foote, a PepsiCo spokeswoman, said there are no current plans to distribute Pepsi True nationally as the company continues to gauge consumer reaction. But “we feel good’’ about initial online orders, said Ms. Foote, who declined to share any hard sales data.
Scott Williamson, a Coca-Cola spokesman, also declined to share any hard sales data but said the rollout has been encouraging so far. “While still early, we’re pleased with how it is performing,’’ he said.

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