Coke's new drink may be unveiled without FDA approval


The Coca-Cola Co. (NYSE: KO) is expected to launch a drink this week with an ingredient that has not yet received Food & Drug Administration approval, according to The Wall Street Journal. The new drink is a non-carbonated juice containing a natural, calorie-free sweetener made from the herb stevia.

Coke plans to market three juice drink flavors in its Odwalla line using this natural, noncaloric sweetener. PepsiCo Inc. (NYSE: PEP) also has several drinks ready to go in the U.S. market using stevia. There's only one little problem, though. The FDA has approved stevia only as a dietary supplement, but labeled it an "unsafe food additive" in 1991 because some studies suggested adverse health effects from stevia-based products. Companies working with Coke and Pepsi to make the sweetener have submitted new data to refute that but have yet to receive approval.


Thing is, it seems an approval isn't actually required under the FDA's voluntary program for new ingredients. Already Cargill Inc., which makes Coke's stevia-based sweetener, is marketing and selling a table-top version, called Truvia. So while Pepsi is holding its new drinks while waiting for the FDA's blessing, Coke may not wait and could unveil the drinks in the U.S. before the approval.

It's quite possible, then, the American consumer could be exposed to an ingredient the FDA right now deems unsafe. If Coke doesn't wait for the approval, it takes a financial and PR risk, not to mention a chance with consumers' health. If the FDA doesn't end up approving stevia as a food additive, Coke will have to recall these products and could suffer all kinds of consequences, from bad PR to perhaps some legal ramifications.

I know the rivalry between the two companies has always been great, but is this really worth it just to beat Pepsi and come out with stevia-sweetened juices first?

Reader Comments (Page 15 of 15)

Symbol Lookup
IndexesChangePrice
DJIA-6.6612,496.15
NASDAQ+11.042,850.12
S&P 500+2.231,318.86

Last updated: May 23, 2012: 06:11 PM

Hot Stocks

General Electric

19.180.00(0.00)

Alcoa

8.61+0.12(+1.41)

Apple Inc

570.56+13.59(+2.44)

Google Inc 'A'

609.46+8.66(+1.44)

Bank of America

7.17+0.19(+2.72)

Wal-Mart Stores

64.58+0.85(+1.33)

Exxon Mobil Corp

82.04+0.09(+0.11)

Ford

10.41+0.22(+2.16)

Citigroup

27.15+0.23(+0.85)

IBM

196.12-0.70(-0.36)

Yahoo

15.38+0.09(+0.59)

Starbucks

55.29+1.92(+3.60)

Microsoft

29.11-0.65(-2.18)

Home Depot

48.74+0.48(+0.99)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1337811114306 ms.