Aspartame Decision Defend

July 22, 2016

A couple weeks ago milk* blogged about PepsiCo’s decision to bring back aspartame in their soft beverage products. “When we launched Diet Pepsi aspartame-free, it’s because there was a huge consumer need for that product, PepsiCo CEO Indra Nooyi said. She continued to say, “People get incredibly fastidious about their products and don’t want to have any changes”. However in the wake of rapid sales decline, PepsiCo announced its decision to bring back aspartame. The soft drink will be marketed as Diet Pepsi “Classic Sweetener Blend”, while the aspartame-free version will still remain. In an effort to increase sales and broaden their consumer base, the company is marketing to both sides of the aspartame argument. Nooyi has been asked some challenging questions concerning the risks tied to bringing back the aspartame offering in relations to their diet beverage portfolio. “It was important for us to own the distribution system because once you have control over the distribution system, you can pump a lot of niche products through it”, Nooyi defended back. PepsiCo is urging analysts to look past soda trends and more into Liquid Refreshment Beverage (LRB), which market grew 2.8% last fiscal year with bottled water, energy drinks, and ready-to-drink coffee products.

BACK TO BLOG