• by Karlene Lukovitz  @KLmarketdaily, December 14, 2010

With consumers more concerned than ever about sugar and calorie consumption, leading beverage marketers' quest for the perfect, natural low- or no-calorie sweetener continues. The latest news: PepsiCo is "very, very close" to launching a lineup of products that will represent a taste breakthrough, chairman and CEO Indra Nooyi revealed during a Beverage Digest conference on Dec. 13.

Nooyi confirmed that the breakthrough involves a combination of sweeteners and flavor enhancers that heighten sweetness and prevent an aftertaste, enabling low-cal drinks to taste better than ever. She declined to be more specific about the products or a launch date, but said the company is optimistic, adding, "let's see what happens next year," reports Moneycontrol.com.

In August, PepsiCo announced a four-year deal with flavor R&D company Senomyx to develop and commercialize natural and artificial sweetness enhancers and natural sweeteners. The artificial enhancers are to be used in small quantities -- a tradeoff consumers are expected to accept in return for low-calorie options that taste more like sugar, Senomyx told The Wall Street Journal.

During the conference, Coke North America president Sandy Douglas offered no specifics about its sweetener initiatives, but stressed that the company's R&D efforts are "as busy as anyone in the industry" and noted the importance of ensuring that innovations are consistent with brand image.

Earlier this week, Coca-Cola announced a new partnership with flavor R&D/development company Cromocell Corp. that "entails the discovery and development of sweetness enhancers, natural sweeteners and other flavor ingredients." Coke had had a long-standing partnership with Senomyx, but the two parted ways two months prior to Senomyx's signing with PepsiCo.

Dr Pepper Snapple Group CEO Larry Young also confirmed that his company is experimenting with sweeteners and enhancers.

Both Coca-Cola and PepsiCo have already invested in development of natural, zero-calorie sweeteners using the stevia plant. Coca-Cola partnered with Cargill to develop Truvia, and PepsiCo worked with Merisant Co. to develop PureVia. The respective stevia sweeteners are used by Coca-Cola in varieties of Vitaminwater, and by PepsiCo in its Tropicana's reduced-calorie Trop50 and varieties of SoBe Lifewater. The NPD Group recently reported that beverage and food products containing stevia sweeteners are showing consumer acceptance levels nearly on par with those of products containing aspartame.

However, according to some reports, newer solutions seek to overcome difficulties in using stevia-based sweeteners in carbonated drinks.