The Coca-Cola Company (NYSE:KO) To Leverage Advantame Advantage


Dallas, Texas 05/22/2014 (FINANCIALSTRENDS) – A per a news report, the Food and Drug Administration has now approved the 6th sugar substitute. The U.S FDA says that Advantame has now successfully passed the process of the food-additive petition and that it can now be used in different foods and beverages. It has the ability to remain stable at very high temperatures and this makes it useable as the ingredient in cooking. In addition, it can be also used as a tabletop-sweetener too.

The preferred substitute

The manufacture of sugar substitutes and the subsequent approval from the regulator reflects emergence of the new trends in the food & beverage industry. Though there have been certain health concerns related to the use of the sugar substitutes, this approval reflects that the safe substitutes can also be produced. The trend will benefit companies who produce these substitutes, but it will also benefit the food and beverage companies which capitalize on the 1st-mover advantage in utilizing these sugar substitutes.

Advantame blends extremely well with caloric as well as non-caloric sweeteners, and provides food & beverage companies like The Coca-Cola Company (NYSE:KO) and General Mills, with an opportunity to reduce the calories in their products even as they maintain the same profile and taste. This sugar substitute effectively enhances flavors of products like fruit & dairy, citrus as well as mint, and its gives companies the opportunity to experiment with new products that have different taste profiles.

Earnings report

In separate news KO last issued the company’s quarterly-earnings data on April 15th. It reported earnings per share of $0.44 for the quarter, which missed the average analyst projection of $0.45 by $0.01. It reported revenue of $10.58B for the quarter, versus the average projection of $10.61 billion. In the same quarter of the previous year, it posted earnings per share of $0.46.

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