Featured Company News – Singapore Fights Diabetes; Coca-Cola, PepsiCo among Seven Beverage Makers to Cap Sugar Content in their Products

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for The Coca-Cola Co. (NYSE: KO), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=KO. The Ministry of Health (MOH) in Singapore has set up the Diabetes Prevention and Care Taskforce (DPCT) which will help Singaporeans take charge of their health and live a diabetes free life. The DPCT has reached an agreement with seven major beverage manufacturers who have agreed to reduce the percentage of sugar in packaged sugar sweetened beverages (SSBs). The seven beverage manufacturers include The Coca-Cola Company (NYSE: KO), PepsiCo, Inc. (NYSE: PEP), Nestle SA, F&N Foods, Malaysia Dairy Industries, Pokka, and Yeo Hiap Seng. For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Impact of the agreement

As a result of this agreement, the beverage manufacturers have agreed to limit the maximum sugar content in all the drinks sold in Singapore to 12%. The Companies have time till 2020 to fully comply with the initiative. The seven manufacturers represent 70% market share of the total pre-packaged SSBs market in Singapore. The decision would reduce sugar consumption via SSBs by approximately 300,000 kg per year.

The agreement between the beverage Companies and the Singapore government would open new avenues of further partnerships to jointly find solutions to reduce the overall sugar consumption in Singapore. The Health Promotion Board (HPB) is also looking at providing additional choices to people to replace the sugary drinks. It has initiated collaborations with industry members and research institutions to find healthier ingredients and food products.

In addition, the DPCT is conducting studies to find out how Singaporeans can reduce their sugar consumption including taking lessons from other countries. Some of the action plans by DPCT include sugar tax, warning labels and advertising restrictions on SSBs with high sugar content.

Diabetes a growing health concern for Singaporeans

Diabetes is a leading public health concern worldwide and is one of the fastest growing conditions in the world. As per the statistics shared by International Diabetes Federation (IDF) Diabetes Atlas – 7th Edition 2015, over 400 million adults across the world were living with the condition in 2015. This figure is expected to rise to more than 640 million adults across the world or approximately one in ten adults, by the year 2040. Although the disease is quite common, it is manageable, the main reason for its spread it blamed on lifestyle habits of people. There are two types of diabetes, Type-1 which is potentially genetic and characterized by a complete lack of insulin production by the pancreas and Type-2 which is usually caused by weight gain (obesity) and lack of physical activity resulting in insufficient levels of insulin production. More than 90% of all diabetes cases are Type-2 diabetes.

Singapore has witnessed the growth of the disease amongst its citizens and is a growing and serious health concern. Singapore already has a population of over 400,000 people who are living with the disease. As per the details provided by MOH, one in three Singaporeans has a lifetime risk of getting diabetes and the number of those with diabetes is projected to reach one million by 2050, if current trends continue. Since Diabetes has become a major public health problem reaching epidemic proportions, the MOH declared “War on Diabetes” in April 2016. Under this umbrella, it has taken a multi-pronged approach to deal with the problem and keep Singaporeans healthy.

Singapore’s HPB launched several initiatives viz., Healthier Dining Programme, Healthier Ingredient Development Scheme and the Healthier Choice Symbol identifier etc. It has also come up with the Eat, Drink, Shop Healthy Campaign that generates awareness and encourages Singaporeans to adopt healthier food choices.

The MOH plans to continue with its efforts to motivate Singaporeans to live a healthy lifestyle and be free from diabetes. It has plans to help those Singaporeans who have diabetes to manage their condition.

Coca-Cola and PepsiCo’s improved product offerings

Coca – Cola and PepsiCo have already taken steps to reduce the sugar levels in their drinks in light of changing global consumer preferences and growing health concerns. In May 2017, the Company announced that it would be reducing the sugar content (including changing their product formulations where required) in more than 500 drinks globally in 2017 and offer more low-/no-sugar options. In FY16, Coca-Cola had reduced the sugar content in more than 200 of its drinks globally. The Company launched its Coca-Cola® Zero Sugar range of zero-sugar drinks in US on July 26, 2017.

In late July 2017, Coca-Cola opened a new storage and distribution center in Singapore. The $57.5 million facility is the Company’s first warehouse in Singapore that has an automated storage and retrieval system (ASRS). Coca-Cola had revealed at that time that it would expand its low- and no-sugar options and enhanced offerings in the Asia/Pacific region.

PepsiCo had unveiled its 2025 Sustainability Agenda on October 17, 2016, wherein the Company planned to manufacture healthier products that meet changing consumer preferences. As per the strategy, PepsiCo aims to have 100 calories or less from added sugar, in at least two-thirds of its drinks and reducing the percentage of saturated fats and sodium in its snacks and dips. PepsiCo offers more than 350 beverages with 100 calories or less. PepsiCo already has launched low-calorie options for virtually every drink they manufacture like Pepsi Next made with 60% less sugar, G2 with the same electrolyte formula as Gatorade but with 60% fewer calories, Trop50 the low-calorie option for Tropicana Orange, etc.

Last Close Stock Review

At the closing bell, on Wednesday, August 23, 2017, Coca-Cola’s stock marginally slipped 0.13%, ending the trading session at $45.54. A total volume of 6.52 million shares have exchanged hands. The Company’s stock price advanced 1.13% in the last three months, 9.31% in the past six months, and 3.85% in the previous twelve months. Moreover, the stock gained 9.84% since the start of the year. The stock is trading at a PE ratio of 47.64 and has a dividend yield of 3.25%. The stock currently has a market cap of $195.05 billion.

On Wednesday, August 23, 2017, the stock closed the trading session at $117.29, slightly declining 0.53% from its previous closing price of $117.92. A total volume of 2.62 million shares have exchanged hands. Pepsico’s stock price advanced 1.06% in the last three months, 7.08% in the past six months, and 8.72% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 12.10%. The stock is trading at a PE ratio of 24.84 and has a dividend yield of 2.75%. At Wednesday’s closing price, the stock’s net capitalization stands at $168.32 billion.

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