While the sweetest of soft drinks may now be off limits in high-school vending machines, some hip new options may soon be available to the nation's students. In May 2006, the beverage industry voluntarily agreed to stop selling full-calorie sodas in schools. The agreement stated that companies could sell milk, water, diet sodas, sports drinks, and unsweetened and low-calorie juices.
The industry has now expanded this list to include additional beverages meeting the criterion of fewer than 100 calories per 12 ounces. Certain flavored iced teas and vitamin-flavored waters fit the bill. Most varieties of Glaceau VitaminWater, a recent acquisition of Coca-Cola (NYSE: KO), have 75 calories or less. The same is true for the various flavors of SoBe LifeWater, owned by PepsiCo (NYSE: PEP).
The enhanced-water craze is certainly sweeping the nation, so why shouldn't high schoolers be able to partake? Sales of the beverage type hit $884.7 million from $20 million in 2000. And even with the addition of artificial flavoring and (in many cases) caffeine, enhanced waters are certainly a better alternative to full-sugar (or full-corn-syrup) soft drinks. Nevertheless, Margo Wootan, a nutritional expert with the Center for Science in the Public Interest, told the Wall Street Journal that the increased number of mid-calorie drink choices is not a positive development.
At my (private) high school, I drank full-calorie mugs of hot chocolate each and every morning and at least 2 regular Mountain Dews each afternoon between classes and nightly play practice. And I was perfectly in shape, because I ate relatively well and remained active. Taking Coca-Cola Classic out of the schools is merely one tiny step in fighting America's growing problem of obesity among the youth.
Beth Gaston Moon is an analyst at Schaeffer's Investment Research.
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