PepsiCo (NYSE:PEP) – Major Change in Diet Pepsi


PepsiCo (NYSE:PEP)

Sweeping Change

If you are one of the many millions of diet cola drinkers- DIET PEPSI in particular- get ready for a major change in how it may taste. On Friday, April 24,2015 PepsiCo (NYSE:PEP) announced they will be making a sweeping change to their Diet Pepsi line of beverages. In a move that Pepsi deemed was spurred by “customer demand evolving”, Pepsi announced they will be replacing the artificial sweetener aspartame(known as Equal or Nutrasweet) with another artificial sweetener-Sucralose(known as Splenda). – CNN Money


Declining Sales

While some say the flavor change may not be significant, Pepsi believes the use of Aspartame has been a drag on sales of Diet Pepsi. The move follows a 5.2 percent decline in Diet Pepsi’s sales volume last year, according to Beverage-Digest. Sales of Coca-Cola’s Diet Coke, which also uses aspartame, dropped 6.6 percent. While Pepsi makes other diet beverages that also contain Aspartame, the Company stated no intentions as of now on changing their ingredient base.


Will The New Diet Pepsi Be Safer?

“Aspartame is one of the most exhaustively studied substances in the human food supply, with more than 100 studies supporting its safety,” the agency  (FDA) said. “FDA scientists have reviewed scientific data regarding the safety of aspartame in food and concluded that it is safe for the general population under certain conditions.” – Bloomberg


While there is controversy when any artificial food product is used, it seems there is less public concern or fears when the Splenda product is used.  STEVIA, one very popular natural product used by the really health conscious consumers would be another great alternative, but the higher cost would likely make it not favorable to major diet cola producers. Time will tell if the new Diet Pepsi will help bolster sales and if the consumer finds it still as appealing to their palates.