Market

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Showing posts with label Coke. Show all posts
Showing posts with label Coke. Show all posts

Wednesday, February 20, 2013

SUGAR IN FOODS-THE WRITING ON THE WALL!

Health pundits are becoming increasingly concerned that all efforts to rein in food industry from making high sugar products and persuading consumers to cut down on sugar consumption are proving to be ineffective during the past two decades. From time to time there have been strident voices advocating stringent action against food industry which is raking in billions of dollars by churning out such sugar sweetened products after realizing the weakness of humans to sweet tasting foods. Whether there is any unanimity or not on this issue, excess sugar intake has been unequivocally implicated in many diseases which debilitate human beings reducing the quality of life for millions, with mortality rate progressively climbing up! Here is the latest scientific documentation that seems to justify clamping down on the food industry through coercive policies to restrict added sugar in processed foods. 

"As currently formulated, Coke, Pepsi, and other sugar-based drinks are unsafe for regular human consumption," said CSPI executive director Michael F. Jacobson. "Like a slow-acting but ruthlessly efficient bio-weapon, sugar drinks cause obesity, diabetes, and heart disease. The FDA should require the beverage industry to re-engineer their sugary products over several years, making them safer for people to consume, and less conducive to disease." In a 54-page regulatory petition filed today with the FDA, CSPI details the substantial scientific evidence that added sugars, especially in drinks, causes weight gain, obesity, and chronic diseases like diabetes, heart disease, and gout. In particular, a growing number of clinical trials have found that people who are assigned to drink sugary beverages gain more weight than those assigned to drink sugar-free beverages. Other clinical studies found that high-sugar diets increase triglycerides, LDL ("bad") cholesterol, and liver fat. "If one were trying to ensure high rates of obesity, diabetes, or heart disease in a population, one would feed the population large doses of sugary drinks," said Walter Willett, professor of nutrition and epidemiology at the Harvard School of Public Health. "The evidence is so strong that it is essential that FDA use its authority to make sugary drinks safer." Willett is one of 41 leading scientists and physicians who signed a letter to FDA commissioner Margaret Hamburg in support of the petition. Willett and his colleagues have conducted epidemiology studies that strongly link consumption of sugary drinks to obesity, heart disease, diabetes, and gout. Soda and other sugar drinks are the single biggest source of calories in the American diet.Americans, on average, consume between 18 and 23 teaspoons—about 300 to 400 calories worth—of added sugars per day. Teens and young adults consume half again more than the average. About one-fifth of adolescents aged 12 to 18 consume at least 25 percent of their calories from added sugars, according to the government's 2007-2008 National Health and Nutrition Examination Survey. About 14 million people of all ages consume more than one-third of their calories in the form of added sugars. The FDA classifies high-fructose corn syrup, sucrose, and other sugars as "generally recognized as safe," or "GRAS" in agency parlance. To be GRAS, there must be a scientific consensus that the ingredient is safe at the levels consumed. CSPI's petition contends that the current scientific consensus is that added sugars are unsafe at the levels consumed. The petition asks the FDA to determine what level of added sugars would be safe for use in beverages, and to require those limits to be phased in over several years. The petition did not propose a specific safe level, but notes that several health agencies identified two-and-a-half teaspoons (10 grams) as a reasonable limit in a healthier drink. In 1982 and again in 1988, the FDA committed to undertake a new safety determination if sugar consumption increased, or if new scientific evidence indicated a public health hazard. Both of those conditions have been met, which CSPI says obligates the FDA to act".

If there is a convincing perception that sugar including High Fructose Corn Syrup is becoming a public hazard, governments in any responsible country is duty bound to take pro-active steps to protect its citizens from the consequences of such practices of the industry. While the evidence is clear regarding the ill effects of sugar, what is lacking is the will to restrain the organized industry which seems to have a vice-like grip on the governing class in most of the countries where it has predominance! One cannot but agree with the suggestions in the above critique that upper limits for sugar in foods and beverages must be enforced sooner than later.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, February 4, 2013

DECLINE OF SODA-IS IT A REAL THING?

Caffeine is being demonized as an undesirable food constituent that can be addictive and stimulant to be avoided by children, old age people and pregnant women. But till to date it has never been implicated in any health disorders of serious dimension. With the advent of cola beverages, caffeine consumption started increasing as it is a significant component in all such drinks. While caffeine was a matter of concern in these drinks, over a period of time it was overtaken by the sugar content in these drinks which was held responsible, at least partly, for the obesity syndrome in a country like the US. It is shocking that an average American gulps down more that 500 ml of cola beverage a day which constitutes almost 40% of liquid intake! In spite of many policy orchestrations and campaigns to reduce soda consumption, there was hardly any impact on this practice. Against such a background the recent news that Americans are switching over to coffee from soda in large numbers is a welcome development. Here is a take on this phenomenal change in the consumer attitude of late.  

"Ten years ago, Americans drank enough soda every year to fill a small aquarium. Fifty-three gallons of the stuff per person. That's half a liter of Diet Coke on an average day. Compare that to our other favorite liquid-caffeine companion. For every cup of coffee we consumed in 2003, we drank two cups of soft drink. For $1 we spent on joe, we spent $4 on soda. Now look where we are: Soda is in a free fall, with domestic revenue down 40%. Coffee culture is ascendant, up 50% in 10 years. In another decade, the United States could easily spend more on coffee than soda — something utterly unthinkable at the turn of the century (industry data via IBISWorld)"

Whether more consumption of coffee is better in terms of health is a debatable point but such a shift in consumer behavior will definitely contribute to lesser intake of sugar and its attendant benefits. The million dollar question is regarding the future of the soda industry which has been raking in record money for the last 6-7 decades through a captive consumer market? Probably the industry may yet see the writing on the wall and hopefully offer better products with more emphasis on the well being of the consumer. Explosive growth of coffee shops like Starbucks and others can have another implication because unlike the classic black coffee drink usually consumed in that country, the new "Avatars" are selling sugar laden variants of coffee using sugar syrup liberally and if this trend continues Americans will be back to square one, making no difference whether one drinks soda or coffee!  

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Friday, December 7, 2012

WILL THE BIG FISH FROM OUTSIDE SWALLOW THE SMALL INDIAN FISH? UNLIKELY

This country is now hotly debating about the desirability of allowing foreign investment in retailing and Delhi is literally on the boil with politicians of all hues and colors expressing their views in the Parliament as well as outside. But does any one have any idea about what is happening at the ground level? Obviously not! Otherwise the discussion would have become an exercise in futility. Whether it is Walmart or Tesco or any other global giant coming to India, if past experience of other similar investors from abroad like Starbucks, McDonalds or KFC is to be reckoned with, it is not easy for any of them to get a firm foothold in India for a long time to come. The reason is that the culture, tradition, lifestyles and attitudes of a vast majority of the people in this country, except for a minority segment, will not allow them to co-habit with the ambiance, luster, lavishness and service offered by the investors from abroad who may have deep pockets and vast experience in luring new customers. Here is a piece of nostalgic reminiscence of a typical Indian citizen after experiencing the pleasure of seeing the foreign players operating in the country, enjoying the same for a few days and then reverting back to the old style of dhabas and chaiwallahs.

'A blind lascivious beggar sings a bhojpuri ditty. Pregnant clouds over Bombay monsoon raindrops like the breasts of Khajuraho; heavy and laden. It is an overcast afternoon and the sun is no more. Humidity and sweat tugs at the will to go on. A long line of India's young and trendy in Converse, in UCB, all Adidas and iPhonery wait for their turn at the recently opened Starbucks. Growing up in India, I remember queuing up outside the very first McDonalds in New Delhi for an hour to have a seven-rupee ice cream. KFC took us to giddy heights of rapture. A chicken wing in hand and a glass of frothy Coke in the other, we had arrived. We were no longer Indians any more. We were cosmopolitan Americans. It didn't last that long. We fell out of love with the Golden Arches and the Colonel and reverted back to our cuisine. The scales fell and we realised that tandoori chicken, a bit of chilli and a pickled onion on the side was timeless. It was forever. Similarly, this is still a nation of roadside and railway station chai-wallahs. City workers, students and manual labourers all frequent little shacks by the roadside for a spot of tea dust in hot milk. Corpulent politicians in spotless tunics, world-weary swamis and lecherous vagabonds squat under flimsy tarpaulins with a kulhad of cardamom chai and a slice of wheat rusk; a rare egalitarianism in a country riven by class and caste.The friendly chai-wallahwith his muzzein-like call in the morning is a constant in an ever-changing India. Starbucks and a host other shiny coffee-wallahs will never equal the pavement camaraderie".

Probably there may be lot of truth in what is said above. But one need not expect that these new mega players with sackful of money will run away soon from the country because their strength is patience, perseverance and vast experience in dealing with people in emerging countries like China, Mexico, Brazil, Indonesia etc. A classical example of am entirely foreign product taking deep roots in India is the Noodles first introduced almost two decades ago and it was after sustaining persistent losses for a long time did this product started making money for the manufacturers. Probably the new foreign players like Starbucks may also become established after a few years if they persist, though losing heavily in the first few years in the bargain. Same applies to FDI in retail also. The task for foreign players is not going to be easy and they should not expect an easy walk over any where in the near future.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, August 22, 2010

MOVE OVER POP SODA, MILK IS COMING-A MNC'S CHANGE OF MIND

Soda business is considered huge and all sweetened drinks with or without fizz come under this category. The spat between Government of India (GOI) and the famed soda maker Coke in 1977 resulting in the exit of this multinational giant from India is part of history. The issue was simple as GOI wanted the Coke to deposit the formula for making the cola beverage with the government to assess whether it contains any harmful additives and Coke refused to oblige resulting in closing its shop in the country. GOI was able to come out with a look-alike product to Coke beverage promptly named "77" through its own R & D group which unfortunately could not replace Coke in the market, Parle's Thums Up getting the benefit. To day Coke and Pepsi after entering India in nineteen nineties dominate beverage market to, under their respective brand names. Under scanner in many countries for their sugar, caffeine and phosphoric acid loaded drinks causing obesity and many health disorders, Coke at least is trying to bring about an image make over by getting into healthier product portfolio as reflected by its recent launch of milk based beverages in the Indian market.

"India is a huge test market for us and success of a global brand depends on how it fares in India," Coca Cola India Vice President (Marketing) Ricardo Ford told reporters here The company launched its 'Mazza Milky Delite,' a blend of mangoes and milk. Priced at Rs 15, the 200 ml tetra pack Delite is likely to have national rollout by December next. "We have several global brands and may introduce some of them in India in future," Ford said. "We'll have to select a portfolio that will cater to the national taste," Ricardo Ford further added".

It is useful to recall the efforts made by GOI in nineteen eighties to "persuade" soft drink industry to include at least 10% fruit juice in synthetic beverages with the avowed intention of giving a boost to fruit juice industry. Even compulsory "fortification" of soft drinks with fruit juice was considered at one time though the same did not materialize for reasons not known. The combination of Mango pulp with milk is a tricky proposition because of the vulnerability of casein in the milk to precipitation due to the pulp acidity. Probably the technological prowess of this soft drink giant enabled it to come out with its latest offering.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com