Pressure on Nutrition and Health in Soft Drinks: The Industry’s Response

Legislative measures and voluntary pressures continue to grow in popularity

Sugar taxes or soft drinks levies, continue gaining popularity, and are now used in countries such as the UAE, UK, or Ireland, among many more. Beyond this, there are ever stronger recommendations and labelling regulations coming from governments, which educate consumers in what is healthy and unhealthy creating further pressures for the industry to conform, and differently depending on country.

Companies have been using four key strategies to manage with the ‘go healthy’ pressures

Among many others four key strategies have stood out in the soft drinks industry: reformulating existing portfolios, diversifying portfolios, focus on packaging, and embracing indulgence.

Maintaining sweetness and taste takes priority in reformulations

Where the pressure to reformulate is driven by fiscal policies, such as sugar tax –reformulation with high intensity sweeteners is the most common response. This shows that maintaining the same sweetness level and as much of the original taste is priority, and possibly the safest initial response for the industry.

Same products’ increasingly differ across markets with regards to formulation

Though legislative measures are increasing, they differ significantly depending on country and even state. This, along with consumer preference, determines local recipes and reformulation efforts, leading to significant differences in products' tastes and creating a discrepancy in the products’ positionings internationally.

Energy drinks’ are in a tricky position with regards to sugar and caffeine regulations, but their sales continue growing

Energy drinks are intended to provide energy, through their sugar content, caffeine content or other energizing ingredient –most of which are scrutinized by regulators and even the public. Despite being the most challenging category energy drinks continue their positive performance. This may be thanks to multi-approach strategies used by companies for the category.