Artificial Sweeteners

Artificial Sweeteners

Artificial Sweeteners

PART1. CURRENT MARKETING SITUATION

Current Market Situation

Artificial sweeteners have made their way in our societies after a much debate, bans and controversies (Clemens, 2010). These sweeteners both natural and artificial are being used extensively in drinks and other processed food products. These products are widely available in the markets and are being consumed without any hesitation from the general public. The availability of the some natural sweeteners such as Stevia as a substitute to sugar or as a sweetener is not permitted is still not permitted around the world except in Japan where they are commonly used as sweeteners. Until 2008, Stevia was not permitted to be labelled and sold as food additive. Due to the increase in obesity, many people are looking for sugar alternates irrespective of the fact that they are neither obese nor diabetic. People willing to remain in shape are using sugar alternatives like these and others so that they can enjoy the sweetness without any side effects. With the legislation being relaxed all over the world, the market for Stevia based products is looking more lucrative and promising.

Product Situation

Truvia has been jointly developed by The Coca Cola Company and Cargill as a sugar substitute. Truvia has been marketed and distributed by Cargill and as food ingredient since its introduction in 2008. It is made of natural herbs and extracts so it is marketed as a natural sweetener (Cargillfoods.com, 2012). In the United States it has already received wide recognition and has passed the sales record of its competitors. There had been scepticism on the products in these categories before but since the formula of this product is new, there is no evidence stating it as harmful. It is recommended as a safe product and it contains 95% rebaudioside A (rebiana)( Maki et al, 2008).

Competitive situation

Truvia has been launched in 2008 while most of the products in similar category are already available in market. The quality of this product has been widely accepted and appreciated by the consumers. This product has already has increased its market share and surpassed the sales of Cumberland Packing Corporation's Sweet'n Low and Mersant's Equal. Still the top competitor with the leading market share is Splenda which Truvia will have to target. Among other competitors is PureVia which is also a stevia-extract sweetener belonging to the portfolio of PepsiCo. Since Australia has a huge sugar industry, the development ...