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A new guideline on sugar could be bad news for Coca Cola and Pepsi

Americans drink a lot of the stuff and are being told to stop.

LAST WEEK, US agriculture department the USDA released a major report on guidelines for healthy eating that completely contradicts how most Americans eat.

One of the biggest changes is strict limits on the amount of sugar Americans consume every day. The guidelines caution against added sugars, advising Americans to consume less than 10% of calories per day from added sugars.

Currently, 70% of Americans consume more added sugar than this recommended limit, with much of this coming from sodas. According to the Centers for Disease Control, roughly one-third of all the calories Americans get from added sugars are from soda and sugary drinks. They get the other two-thirds from processed foods like snack bars, cakes, breads, and ice cream.

Why target sugar?

Before sugar was the target of health advocates, fat was public enemy No. 1. However, as fat was pulled from recipes in the 1980s and ‘90s, food makers began to replace the ingredient with something else: sugar.

Now, scientific research is indicating that sugar — specifically, added sugar, as found in soda — can be similarly dangerous.

systematic review published in 2006 that examined 50 years of studies, found a link between the amount of sugar-sweetened beverages people consumed and weight gain and obesity.

PastedImage-124 Mr.TinDC / Flickr Mr.TinDC / Flickr / Flickr

Specifically, researchers found “strong evidence for the independent role of the intake of sugar-sweetened beverages, particularly soda, in the promotion of weight gain and obesity in children and adolescents.”

Since then, an increasing amount of damning research has emerged. As a 2009 study in the New England Journal of Medicine states, “the science base linking the consumption of sugar-sweetened beverages to the risk of chronic diseases is clear.”

While many foods high in natural sugars, such as fruit and milk, provide you with necessary nutrients and fill you up, sugary beverages lack the protein and fibre needed to balance out the impact of sugar. As a result, sugary drinks such as Coke or Dr. Pepper are more likely to contribute to weight gain.

“The correlations between soda and obesity are extremely strong,” Marion Nestle, a professor of nutrition, food studies, and public health at New York University and the author of the book “Soda Politics” told Business Insider.

What can the USDA do?

As evidence again sugary beverages piles up, there have been increasing efforts to curb Americans’ soda habit.

In 2013, while still in office, former New York City mayor Michael Bloomberg tried (and failed) to ban oversized sugary drinks. Around the same time, Berkeley, California, passed a tax on sugary beverages, and nearby San Francisco recently slapped warning labels on drinks with added sugar. Currently, 33 states have laws taxing sugary drinks.

PastedImage-4391 AP Photo / Wilfredo Lee AP Photo / Wilfredo Lee / Wilfredo Lee

Health groups’ new guidelines are additionally attempting to cut soda consumption in the US. In addition to the USDA’s new guidelines, in November, the FDA announced Americans should eat and drink no more than 50 grams of sugar a day — roughly the same amount of a bottle of Coke.

These changes may not have an immediate impact, but can yield huge results in the long term. For example, a 10% tax on sugar-sweetened beverages introduced in Mexico in January 2014 was associated with a 12% reduction in sales of taxed drinks.

While critics argue that this isn’t a large enough change to significantly impact consumers’ health, a 12% drop in sales is certainly enough to impact the soda business.

Even in an unscientific examination of beverage consumption in the US, it is clear that people have reduced their soda intake as the anti-sugar trend has grown. Per capita soda sales are down 25% since 1998, The New York Times reported in October.

Big soda’s reaction

Sugar tax PA Wire / PA Images PA Wire / PA Images / PA Images

Unsurprisingly, the soda industry isn’t pleased with efforts to turn customers away from sugary beverages. The American Beverage Association, the industry’s main lobby group, has already invested millions of dollars fighting laws to tax and label sugary beverages.

Anti-obesity advocates have drawn comparisons between tobacco and beverage industry groups, claiming that the American Beverage Association twists scientific research and misleading rebrands products in a way that is reminiscent of Big Tobacco’s prior efforts. So far, soda giants are trying to recoup lost sales by doing two things: convincing consumers that sweet sodas are ok to drink, as well as investing outside of traditional sugary drinks.

When it comes to attacking science, critics condemn Coca-Cola’s funding of research that emphasizes exercise over dietary changes for health and weight loss. The company promised in September to increase transparency about these research partnerships going forward. In December, emails leaked revealing that Coke helped pick a nonprofit’s leaders, edited its mission statement, and provided input on minor issues such as the group’s logo.

Research aside, if soda companies want to convince people to continue to drink soda, they need to cut down on sugar and calories. One way to do that is by making serving sizes smaller. In other words, companies want to make more money by selling less soda.

While the volume of soda Americans consume has dropped, the number of bottles and cans purchased is still rising. These smaller cans and bottles have the added bonus of generating greater profit.

“The consumer is moving to smaller packages,” Sandy Douglas said in a Morgan Stanley Global Consumer and Retail Conference in November. “A 12-ounce can traded to a 7-ounce can is a 30% reduction in volume, but it’s an increase in revenue.”

PepsiCo Soft Drinks AP / Press Association Images AP / Press Association Images / Press Association Images

It also makes the companies look good. When the American Beverage Association pledged in 2014 to cut calories by 20% by 2025, that didn’t require Coke or Pepsi to craft a lower-calorie can of soda. It could just mean that cans are getting 20% smaller.

However, soda giants do realise the need to diversify and expand beyond sugary soda.

PepsiCo CEO Indra Nooyi told investors in October that focusing solely on carbonated soft drinks was “a thing of the past.”

Instead, Pepsi and other major companies are developing new healthy beverages. This year, Pepsi is launching products like an organic Gatorade, new Aquafina flavored waters, and healthy vending machines. Similarly, Coca-Cola is debuting sparkling Minute Maid and sparkling Smartwater.

Sugary Soft Drinks AP / Press Association Images AP / Press Association Images / Press Association Images

Many of these products are still high in sugar (a 32-ounce bottle of PepsiCo’s Gatorade caneasily exceed the FDA’s 50-gram sugar limit). However, as the FDA and USDA push Americans to make healthier decisions, moderation is key to the future of Americans’ soda consumption.

The study on the impact of taxing sugary sodas in Mexico revealed that, in addition to driving a 12% reduction in taxed drinks, there was a 4% increase in purchases of untaxed drinks the year after the law was implemented. Especially as sugary beverage sales are on the decline, soda giant are eager to make up those sales with beverages perceived as nutritous.

Read: Coca Cola gave $1.5 million to scientists who say soft drinks don’t cause obesity

Read: San Francisco is being sued over its sugary drinks warning labels

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    Mute Guy Incognito
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    Aug 10th 2015, 8:45 AM

    did ye really have to turn Shane’s win into a dig an Enda Kenny? Shane deserves his own article on the Journal, without any spin in the story.

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    Mute Watcher-on-the-Wall
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    Aug 10th 2015, 8:58 AM
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    Mute Le Tigre
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    Aug 10th 2015, 8:19 AM

    In before people start b*tching about Enda Kenny

    Side note; They’d also b!tch if he DIDNT congratulate Shane Lowry

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    Mute Peadar Ó Gréacháin
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    Aug 10th 2015, 8:23 AM

    I was going to throw in a dig, he’s not worth it.

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    Mute Thomas Mac
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    Aug 10th 2015, 8:35 AM

    “Enda is a knobhead “- Thomas Mac .

    “Shane played great golf over the four days and thoroughly deserved this huge victory “-Thomas Mac

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    Mute John O'Neill
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    Aug 10th 2015, 6:16 PM

    Biffoff Enda…

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    Mute Pepper Brooks
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    Aug 10th 2015, 8:38 AM

    Click bait from the journal. This story is written solely to generate negative comments about Enda. About as subtle as a bull in a china shop. It’s standard procedure for the Taoiseach to congratulate major international sporting achievers. Anyway to be fair to Enda he is a sports fan, whatever else you think of him.

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    Mute Richard Cheney
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    Aug 10th 2015, 8:40 AM

    Comment of the week

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    Mute Peter Slattery
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    Aug 10th 2015, 8:42 AM

    Ah here, it’s not even 9am on Monday morning…

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    Mute Elma Phudd
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    Aug 10th 2015, 8:45 AM

    Also, like him or loathe him, a decent media outlet would surely refer to him as ‘Kenny’ in the headline. You wouldn’t read ‘David’ congratulates such and such in the UK. He’s still our Taoiseach.

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    Mute North Korean General
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    Aug 10th 2015, 8:46 AM

    Don’t think much of Enda the parasite…

    Well done Shane, U.S. Open next….

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    Mute Infidel
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    Aug 10th 2015, 8:48 AM

    It’s gutter journalism stuff and it totally distracts from Shane’s wonderful achievements. It should be about Lowry not Enda.

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    Mute Dave cullen
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    Aug 10th 2015, 9:48 AM

    Shane is an incredible talent,the other man is a dredge on Irish society.Hopefully lots more to come from Lowry.

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    Mute Wayne O'Fathaigh
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    Aug 10th 2015, 8:24 AM

    Surprised he found the time, yesterday as he was on the Tarmac at Knock waiting to great a known Pedophile protector and a man who bullied sexual abide victims and lied to the same victims about his knowledge of their attackers previous abuse!

    Yep that’s right Enda roles out the red carpet for Cardinal Timothy Dolan!

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    Mute Colin Reilly
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    Aug 10th 2015, 10:28 AM

    Could have sworn you were on about Gerry Adams until the second paragraph

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    Mute Wayne O'Fathaigh
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    Aug 10th 2015, 10:59 AM

    Strange how Enda will grandstand and criticise Gerry or the Catholic Church but then role out the red carpet for this man

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    Mute Colin Reilly
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    Aug 10th 2015, 11:38 AM

    You must love carpets, always banging on about them

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    Mute Michael Mc Gauley
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    Aug 10th 2015, 8:26 AM

    Wait now the British media will claim him as English. Delighted for u Shane.

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    Mute Steve Monk
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    Aug 10th 2015, 8:30 AM

    stupid comment

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    Mute VinHeffer89
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    Aug 10th 2015, 8:38 AM

    It’s not that stupid. As Brenda Fricker said, “When you’re pissed drunk at a train station you’re definitely Irish but when you win an Oscar you’re definitely British”.

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    Mute John Lennox
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    Aug 10th 2015, 4:54 PM

    Its a long standing tradition of the BBC to do this.

    Same applies for Scottish sports people, they are British when they win and Scottish when they lose.

    I don’t think it is a deliberate policy but just a deeply ingrained mindset in the British media.

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    Mute Freebetcitydcom Mike
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    Aug 10th 2015, 8:22 AM

    Shane lowry to Enda “its a pity the feeling isnt mutual”.

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    Mute Anto Curran
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    Aug 10th 2015, 8:25 AM

    Haha his congratulations message is so generic! it’s just short of him saying “well done on doing well in that game you play”

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    Mute John Smith
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    Aug 10th 2015, 9:21 AM

    The Irish amateurs also had a good week at the International European amateur open in Slovakia with a 2nd and 3rd place finish and 5 in the top 20, a huge achievement that shows that we keep producing great golfers on this island. Half the walker cup team could be Irish at this rate.
    http://www.irishgolfdesk.com/news-files/2015/8/9/second-in-european-again-classy-hurley-edges-ireland-closer-to-famous-five-for-walker-cup

    Great win for Shane, I hope he has a good week this week.

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    Mute Niall Power
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    Aug 10th 2015, 9:15 AM

    Hopefully the people of Mayo have seen enough not to reelect him?

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    Mute Cyril
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    Aug 10th 2015, 9:01 AM

    He is such a sad joke like something out a darbey o gill movie. Thats inda i am talking about he would not lace Shane’s shoes .

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    Mute gary kelly
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    Aug 10th 2015, 10:28 AM

    Great victory

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    Mute Peter Higgins
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    Aug 10th 2015, 4:29 PM

    Well done, Shane! It’s the other Lowry that terrifies Enda.

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    Mute The Irish Bull
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    Aug 10th 2015, 10:24 AM

    Well done Shane. Enda, PFO!

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    Mute Seamus Brady
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    Aug 10th 2015, 9:31 AM

    Does this mean that Shanes family have paid the water tax

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    Mute Eamon Mac Gowan
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    Aug 10th 2015, 1:13 PM

    Fellow Clara man Brian Cowen will be even more pleased.

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    Mute Eugene Conroy
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    Aug 10th 2015, 10:29 AM

    shane lowry tells enda we are all not so proud of you efforts

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    Mute Des Doran
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    Aug 10th 2015, 9:55 AM

    And how much will he tax him when he’ gets home?

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    Mute Ray Laffan
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    Aug 10th 2015, 10:13 AM

    Hes like Charlie in Italia 90

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    Mute Irish big fellow
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    Aug 10th 2015, 11:39 AM

    Smashing stuff Shane. Pity the spoilers that have nothing else to do but be cynical about your great victory. We are all proud of of you including Enda and maybes even the Sports Dept in RTE.

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    Mute Barty
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    Aug 10th 2015, 10:31 AM

    Has Shane been claimed by the English yet?

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