I think you have heard the news that “Pepsico will not use Aspartame in one of its products in America since this August.”
At the first sight of this news, we’re worried that Aspartame market will have to have a big change.
Pepsico is the muinternational company and the largest Aspartame consumer in the world. Pepsico is flag in the aspartame industry and carbonated drink industry.
If it would not use Aspartame, we guess many end users will also drop aspartame, tend to Acesulfame-K and sucralose.
We’re the Aspartame manufacturer, the damage can be fatal. Primarily because this is driven by consumers. It’s out of our control.
If for Aspartame trader or distributor there is no much influence. As Acesulfame-K and Sucralose also are their products.
We collect the news from Pepsico, finding that Pepsico will not use Aspartame in one of its products only in America since this August.
Here I would like to give you some analyst:
1.Pepsico will stop add Aspartame in Diet coke only in US market, Pepsico in other countries will still use Aspartame.
2.The sales of Pepsico’s Diet coke drops 5.2% last year in US market, but in other countries market do not have such big drop, so we estimate the sales drop is the main reason that Pepsico will not add Aspartame in US , to get more sales in US, as aspartame is sometime considered not safe.
3.Coca-Cola still use Aspartame, do not change their sweeteners formula. Coca-Cola claim the ingredients that Coca-Cola use are all safe after heard the news “Pepsico will not use Aspartame in one of its products in America since this August.” Frankly speaking, carbonated drink is commonly considered not safe, and sales drop also happen in China.
1.I think the sales drop of carbonated drink in China and U.S. is due to the competition of other drinks including bottled water.
2.The change only applies to the U.S. market on Diet Pepsi, Caffeine Free Diet Pepsi and Wild Cherry Diet Pepsi. It will not apply to other Pepsi drinks, such as Diet Mountain Dew.
3.Coca-Cola announced that it has no plans to change the sweetener in Diet Coke, which is the country’s top-selling diet cola.
4.The safety of APM has been approved by U.S. FDA and the Europe. It should not be the main reason for the sales drop and the change of APM of diet Pepsi.
5.I heard this may help the sucralose suppliers in China. But sucralose price from China is so low due to competition. Is it around FOB $35/Kg – $40/Kg now.
The impact to suppliers in China should be small. Most suppliers do not supply to Pepsi.
With the March price drop to average $11.50 FOB China, is it still profitable for most of the suppliers in China.
The cost in China will continue to increase mainly due to the strict enforcement of environmental pollution control.
The increase of labor cost is also a concern.
Let’s what happens in future about Aspartame.