Tag Archives: PepsiCo Inc

PepsiCo Revives Diet Pepsi With Aspartame After Only a Year

PepsiCo Inc., struggling to cope with plunging sales and unpredictable consumers, is bringing back its old Diet Pepsi formula less than a year after phasing it out. 

Diet Pepsi, which was reformulated in August to drop the artificial sweetener aspartame, will be sold in its old recipe as Diet Pepsi Classic Sweetener blend in retro packaging, PepsiCo said Monday. As part of a broader revamp of its diet-cola lineup, the company also is renaming Pepsi Max as Pepsi Zero Sugar in the U.S. to more clearly show that the beverage has zero calories.

Pepsi
Pepsi Co. diet cola brands.
Source: Pepsi Co.

While PepsiCo says that Diet Pepsi without aspartame will continue to be the companys primary diet cola, reviving the drinks old recipe signals that the new version — an an attempt to woo consumers increasingly wary of aspartame — hasnt been a hit. Diet Pepsis sales volume fell 5.8 percent in 2015 and dropped roughly 11 percent at retail during the first quarter of 2016, according to data from Beverage Digest, which reported on the changes earlier.

When you change the taste of a product that people rely on for consistency of taste, that can have pretty damaging brand effects, said Adam Fleck, an analyst at Morningstar Inc. You always want to be right, but when the market is telling you that your product is not right for what they want — or certainly less than before — you have to make that shift.

The shares fell 0.4 percent to $101.55 at 10:54 a.m. in New York. PepsiCo, based in Purchase, New York, had gained 2.1 percent this year through the end of last week.

Read more: http://www.bloomberg.com/news/articles/2016-06-27/pepsico-to-revamp-its-diet-cola-lineup-in-a-bid-to-revive-growth

Sweetener switch: Diet Pepsi reformulating soda with aspartame again

Diet Pepsi devotees weren’t fans of the reformulated version with sucralose. Now PepsiCo is switching back to aspartame. (AP)

Diet Pepsi made with aspartame is returning to shelves in the U.S., after PepsiCo saw sales plummet following its reformulation of the drink last summer to remove the artificial sweetener.

PepsiCo says it will offer “Diet Pepsi Classic Sweetener Blend” made with aspartame starting in September, in 12-ounce cans, 2-liter bottles and 20-ounce bottles. The move is intended to appease fans who don’t like the taste of the reformulated drink, which is made with the artificial sweetener sucralose.

But PepsiCo Inc. said Diet Pepsi made with sucralose, commonly known by the brand name Splenda, will remain its primary diet soda offering. Those cans will be silver, while the “classic” Diet Pepsi with aspartame will be come in light blue packaging.

When PepsiCo removed aspartame from Diet Pepsi in August, it said the change was the No. 1 request by customers. Industry executives have blamed the declining sale of diet sodas on concerns people have about the ingredient. Several years ago, Coca-Cola Co. tested ads in select newspapers defending the safety of the sweetener.

PepsiCo’s replacement of the sweetener from Diet Pepsi tested the theory that it was to blame for fleeing customers, but the plan seems to have backfired.

In the first quarter of this year, sales volume for Diet Pepsi sank 10.6 percent, according to industry tracker Beverage Digest.

Diet Coke, which stuck with aspartame, saw volume decline a more moderate 5.7 percent.

Aspartame had been linked to cancer in lab mice, but it is approved for use and the Food and Drug Administration says more than 100 studies support its safety. PepsiCo’s decision to bring back Diet Pepsi with aspartame was first reported by the publication Beverage Digest.

Meanwhile, PepsiCo also said Monday that Pepsi MAX will be re-introduced as Pepsi Zero Sugar in the U.S. and will still contain aspartame.

Shares of PepsiCo Inc. slipped 13 cents to $101.85 amid a broad market sell-off. Its shares are up more than 7 percent over the past year.

Read more: http://www.foxnews.com/leisure/2016/06/28/sweetener-switch-diet-pepsi-reformulating-soda-to-include-aspartame-again/