Case Study: Coca- Cola Reformulations to Lower Sugar and Calories
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2 Case Study: Coca- Cola Reformulations to Lower Sugar and Calories
3 Today: more than 500 brands & 3500 products in 206 countries 1st Sparkling drinks 1st RTD coffees 1st Juices and juice drinks 2nd Packaged water
4 129 years of innovation 1886 The original version 1941 Fanta 1961 Sprite 1982 Diet Coke 1983 Caffeine free Coca-Cola 2006 Coca-Cola Zero 2012 Sprite with Stevia Extract 2014 Coca- Cola Life
5 Our UK portfolio: providing choice All of our 19 brands in the UK have a reduced or no sugar/calorie alternative
6 We offer choice and information to consumers Products We are developing a portfolio of products that correspond to local consumer needs Choice We aim to offer variety of choice of products, pack sizes and calorie contents Nutrition Clear and simple information
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9 Our key considerations when reducing sugar and calories in drinks What are we trying to achieve? The commitments we have made What will be the taste impact? What regulatory restrictions are there? Which sweetener to use? What is the likely consumer acceptance? How will we convey the message?
10 Regulatory considerations Food additives regulation Regulation EU 1129/2011 amending Annex II of Regulation (EC) 1333/2008 of the European parliament of the council by establishing Union list of food additives Regulates which food additives are permitted in which foods and drinks and at what level. Sweeteners permitted in soft drinks only energy- reduced or with no added sugar. Energy reduced means a food with an energy value reduced by at least 30 % compared with the original food or a similar product. Nutrition and health claims regulation Regulation (EC) 1924/2006 on nutrition and health claims made on foods. Nutrition claims annex has a category of reduced energy requires a 30% reduction in calories compared to original or a similar product
11 Key challenge when using sweeteners is finding the right profile and intensity Sweetener Sweetness vs sucrose Acesulfame K 200 Advantame Aspartame Cyclamate Sucralose 600 Saccharin salt of Na, K, Ca 500 Sweetening power Taste profile Time profile Neohesperidine DC Thaumatin Neotame Steviol glycosides 200
12 The consumer - concerns about food issues Food additives regulation Regulation EU 1129/2011 amending Annex II of Regulation (EC) 1333/2008 of the European parliament of the council by establishing Union list of food additives Regulates which food additives are permitted in which foods and drinks and at what level. Sweeteners permitted in soft drinks only energy- reduced or with no added sugar. Energy reduced means a food with an energy value reduced by at least 30 % compared with the original food or a similar product. Nutrition and health claims regulation Regulation (EC) 1924/2006 on nutrition and health claims made on foods. Nutrition claims annex has a category of reduced energy requires a 30% reduction in calories compared to original or a similar product Source: Food Standards Agency, May 2015
13 The consumer - concerns about ingredients % Concerned Unconcerned Don't know Source: Lightspeed/GMI Mintel Base: 2,000 internet users aged 16+
14 Stevia is one of the strategies required to achieve our commitments + P P P P P Replacement strategy or line extension No taste compromise At least 30% calorie reduction (legal requirement) With sweeteners of natural origin Strong communication strategy in place
15 What is stevia? A member of the chrysanthemum plant family native to Paraguay (e.g., chamomile, chrysanthemums, daisy, lettuce, sunflower and tarragon) Powdered leaves used by the Guarani people of Paraguay for centuries to sweeten beverages Grown today in Asia and South America A unique source of intense sweetness Up to 400 times sweeter than sugar 11 main steviol glycosides in the leaf Reb A is main glycoside in the leaf Reb A Approved in many countries including the US, Canada, Australia, Japan and Europe
16 Challenges with stevia extract developments require cross functional solutions
17 Reduced sugar and calories by 37% in 2012 Communicated positively on taste
18 Coca- Cola Life journey R&D with suppliers to develop purified stevia extract High purity stevia leaf extract GRAS status by FDA Steviol glycosides (reb A) approved in Europe 2011 Experience of reformulating Sprite
19 Sugar reduction is not just compensating sweetness Original formulation (10 brix) Reformulation (< 7brix) Sugar reduction affects Sweetness which drives flavour and balances sourness Texture which enhances product palatability Taste vehicled by sugar Turbidity by maintaining small particles in suspension Colour As sugar provides a light amber colour to be compensated with: Stevia extracts Acids blends Texturants (Pectin, CMC ) flavouring dosage Maskers and enhancers Process and formulation Cloudiness, juice% Colour Rework?
20 Coca- Cola Life journey Extensive internal testing with stevia extract Launch of Coca- Cola Life in Argentina and Chile 2013
21 A robust menu approach to improve the screening efficiency Product Guidance Research Product development Product Screening Research Screening approach Super taster panel Internal tasting Systematic approach Preference Mapping Temporal Dominance Sensation (TDS) Evaluate the sweetness profile over time of stevia formulations vs. current formulations full sugar. Product Development Production + Ageing + Micro-release Confirmation phase Panel / TDS Production + Ageing + Micro-release External screening Blind or branded extended sip test
22 Coca- Cola Life journey Development of European Coca- Cola Life prototypes Various sugar contents Extensive Consumer testing UK launch of Coca- Cola Life 2014 Sugar 6.4g/100ml 33% less than full sugared colas in GB
23 Challenges with stevia developments High product preference on market Parity overall liking Regulatory constraints Replacement strategy Sustainable brand promise and equity Claimable benefits
24 Learnings Cross functional approach needed Will take time to get it right Extensive sensory and consumer testing required Replacement strategy Use of bitterness masking agents and more Consumer education needed Sustainable brand promise and equity
25 Consumer education 50% of UK consumers don t understand Coke Zero contains no sugar or calories Coca- Cola research 2014
26 Great tasting products with stevia extract with less sugar and calories New stevia extracts More effective bitterness inhibitors Erythritol permitted in soft drinks
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