20 April 2024

New Diet Pepsi Leaves Loyalists with Bad Taste

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The new Diet Pepsi is having a rough debut since PepsiCo Inc. replaced the artificial sweetener aspartame with less-controversial sucralose in a bid to reverse plunging industrywide diet-soda sales. Sales have kept sinking since the reformulated cola began surfacing on store shelves more than a month ago, and Diet Pepsi loyalists are using words like “yuck” and “unpalatable” to broadcast their distaste on Twitter and Facebook.

The change also has put a spotlight on the artificial sweetener sucralose, commonly known as Splenda, which has had a lower profile—and thus less pushback—among consumers than aspartame. Only 3% of sucralose mentions have been positive and 17% have been negative on Twitter over the past three months, according to social media tracker Sysomos. For aspartame, 1% were positive and 7% were negative.

PepsiCo Chief Executive Indra Nooyi says it is too early to tell how consumers are responding to the new formula.  The company says initial consumer sentiment often skews negative when established brands change and that it received just over 3,000 complaints over the summer, fewer than the roughly 9,000 expected but more than nearly 370 positive responses.

The company tested the new Diet Pepsi with thousands of consumers for about two years before the launch and says three-quarters liked the taste. Prior to the introduction, its surveys indicated the No. 1 reason consumers were dropping diet cola was aspartame—a zero-calorie sweetener blamed for everything from autism to diabetes.

The Food and Drug Administration approves all artificial sweeteners as safe before allowing them in food and drinks. Some studies, though, have suggested links to cancer or other health risks. The Center for Science in the Public Interest, a U.S. consumer health group, recommends avoiding aspartame, sucralose and acesulfame potassium, another sweetener in Diet Pepsi and other sodas.

All of PepsiCo’s diet soda sales fell 6.6% in the U.S. in the four weeks ended Sept. 19, worse than the 5.7% decline over the previous 52 weeks, according to Morgan Stanley, citing Nielsen store-scanner data. That also was steeper than the 3.4% drop in diet soda sales at Coca-Cola Co., which hasn’t removed aspartame from Diet Coke.

Consumers are notorious complainers online. Social-media tracker Networked Insights estimates negative statements about new products typically outnumber positive statements four to one. But it estimates the ratio for Diet Pepsi to be 6 to 1. “The early verdict on Diet Pepsi does not look promising,” said Rick Miller, a vice president at Networked Insights.

Diet Pepsi has won converts like the Hinds family of Charleston, W.Va., which had sworn off aspartame. It has switched to Diet Pepsi, preferring the taste to Dr Pepper Snapple Group Inc.’s Diet Rite, a cola also sweetened with sucralose instead of aspartame. “I never said it’s 100% safe or chemical free, but [sucralose] may be the lesser of two evils,” said Fred Hinds, a 50-year-old health care consultant.

Taste matters, however, and tweaking recipes of big brands is risky business. Coke learned the hard way in 1985, when it introduced New Coke before quickly switching back after consumers rebelled. Diet soda drinkers also typically drink a lot, making their taste buds particularly sensitive to change, said Virginia Lee, a beverage analyst at Euromonitor International.

At the same time, health-conscious consumers increasingly are trying to steer clear of all artificial sweeteners. In an International Food Information Council survey this March, 37% of Americans said they tried to avoid aspartame but 25% also tried to avoid sucralose.

PepsiCo says it is rolling out thousands of National Football League-themed advertising displays in stores featuring Diet Pepsi and is ramping up free “sip samples” across the country after shipping the new version to celebrity athletes and musicians.

Sysomos estimates Diet Pepsi generated more than 5 million Twitter impressions when the wives of NF L quarterbacks Matt Ryan and Ryan Tannehill tweeted their samples tasted “great” and “better than ever” to thousands of followers, who then retweeted the messages. The players’ wives weren’t directly paid by Pepsi for their endorsements, however, a portion of Pepsi’s contract with the NFL is allocated for local player deals.

Click here to access the full article on The Wall Street Journal.

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