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August 15, 2012
By: Diana Cowland
Health and Wellness Analyst, Euromonitor International
Consumer demand for natural ingredients ceases to wane. The sweetener stevia, from the plant stevia rebaudiana (known for its intensely sweet leaves), is one natural ingredient that has seen its use—particularly in soft drinks—increase rapidly since it was permitted in the U.S. in December 2008 and in the EU in December 2011. Numerous New Products Many large companies, such as PepsiCo, The Coca-Cola Co, Unilever Group, Ito En and now Yakult Honsha Co Ltd, have spotted the potential and launched drinks sweetened with stevia. One of the most successful brands to date, PepsiCo’s Trop50, generated retail sales of $160 million in 2011 (equivalent to 78 million litres), just three years after being introduced to the market. In 2012, the brand widened its range, launching green tea and white tea mixes designed to target the health-conscious consumer. No doubt wanting some of PepsiCo’s success with stevia, Coca-Cola is looking to expand its coverage in Europe. The regular Sprite variant (not Sprite Green) now contains stevia in France and its Nestea brand with stevia is set to launch in more EU countries in 2012, including the Czech Republic, Austria, Greece, Italy, Poland, Slovakia, Slovenia, Benelux and Germany. Asian Brands Bring Green Tea to the U.S. Incorporating stevia into RTD green tea can be used to advocate the product’s health benefits. Ito En, a top 20 global soft drinks player in 2011, launched Teas’Tea Plus half & HALF in April 2012, which is a green tea flavored with apple, lemon or peach, and sweetened with stevia. The product markets the fact that it contains catechins, an antioxidant present in tea, which, according to the product, helps to maintain a healthy heart and neutralize free radicals. While this seems a particularly strong claim for a drink, it highlights the fact that stevia manufacturers could benefit from promoting the naturalness of their product to boost sales of beverages with a cardiovascular health positioning. Stevia & Probiotics Yakult Honsha Co’s Yakult Light containing stevia has been available in the U.S. since mid-July. It contains two-thirds less sugar and 30 calories. A major selling point will be the fact that the product will not contain high fructose corn syrup. Using stevia to sweeten a product already well known for its health benefits could help promote the product’s added value while aligning with the consumer view that the fewer artificial ingredients contained in a product, the healthier it is. Also a Solution for Obesity? Obesity is multifactorial, but drinks in particular are routinely seen as a major contributor to the global obesity epidemic. The logic behind the accusation is compelling—one litre of a standard cola contains 420kcal, and all from sugar. The consumption of eight litres of cola (or any other standard carbonate beverage) per week, which is not an unrealistic quantity by any means, amounts to the caloric equivalent of 1lb of body fat. Although stevia still needs to be combined with sucrose to mask its bitter aftertaste, it could reduce the calorie content of a drink by half without sacrificing either sweetness or naturalness. As a result, low-calorie soft drinks are set to enjoy another serious boost in popularity and, perhaps more importantly, the sweetener also has a potential role to play in halting rising global obesity levels.
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