Coca-Cola will only see a limited impact if the World Health Organisation classifies the artificial sweetener used in its Diet Coke, aspartame, as a possible carcinogen, thanks to its scale of production. If the WHO’s cancer research arm classifies aspartame as a possible carcinogen, it could lead to changes in consumer behaviour and industry practices.
According to analysts, Coca-Cola is expected to experience limited negative effects from such a classification due to its scale of production. The company’s strong production and distribution systems may make it easier for them to switch to a natural sweetener compared to other companies that use aspartame. Analysts also mention Coca-Cola’s ability to navigate challenges in the past, such as sugar taxes and the reformulations associated with them.
The article notes that both Coca-Cola and PepsiCo have made adjustments to their ingredient composition in the past to comply with evolving policy changes. For instance, they modified the manufacturing process of caramel colouring in response to a California ballot initiative.
While shifting away from aspartame may impact Coca-Cola’s short-term profitability, analysts believe that its long-term growth prospects would not be significantly affected due to its production history. On the other hand, PepsiCo, which has already moved away from aspartame to a blend of sucralose and acesulfame potassium, could potentially have an advantage over Coca-Cola.
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