This Could Be a Big Problem for Coca-Cola Stock
Coca-Cola (NYSE: KO) is a good income stock to own, but on the growth front, the company has been fighting a tough battle for years as consumer tastes shift gradually toward healthier drink options. For its part, the company has adapted and evolved its portfolio. Its Diet Coke and Coke Zero products have been major contributors to its top-line growth. But demand for them could soon take a hit.
According to reports, the International Agency for Research on Cancer (IARC), which is part of the World Health Organization, is going to formally declare aspartame a possible carcinogen this month. Both Diet Coke and Coke Zero contain aspartame. Having a key ingredient in some of its top-selling beverages linked to cancer -- even potentially -- is obviously not going to be good for Coca-Cola's business.
The challenge for soda companies such as Coca-Cola and rival PepsiCo will be determining how best to respond to this news. There's been much debate over the years as to which artificial sweeteners are safe and whether they do more harm than good. There have been conflicting studies as to their safety.
Source Fool.com
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