The WHO Has Declared Diet Coke Could Cause Cancer. What’s Been the Impact on the Stock?
Key takeaways
- Leading health body has declared aspartame as a possible cancer risk
- The sweetener is most commonly found in soft drinks like Diet Coke, Diet Dr Pepper and Sprite Zero
- Coca-Cola’s stock price has been largely unaffected by the news
The World Health Organization has deemed a sweetener used in popular soft drinks like Diet Coke, Pepsi Max, and others a possible cancer-causing ingredient. But the risk is so low, you don’t need to give up your Diet Coke habit any time soon — and investors on Wall Street have taken the same view about the stock. Here’s the latest.
Investing doesn’t always have to be about the straight and narrow. Let your portfolio live a little with Q.ai’s Guilty Pleasures Kit. Offering diversity across alcohol, tobacco and gambling companies, the Kit uses a sophisticated AI algorithm to predict which ‘taboo’ stock might perform well and realign the holdings as needed to help you build wealth.
Download Q.ai today for access to AI-powered investment strategies.
What’s the WHO said?
WHO has determined aspartame, a sweetener that’s a key ingredient in many household-name diet soda drinks, to be ‘possibly carcinogenic to humans’. However, it has deemed the risk low and advises it’s still safe for the average person to consume 0–40mg of aspartame per kilogram of body weight each day.
Aspartame can be found in more than just soft drinks — it’s used in some desserts, reduced sugar sauces and ketchup, and even toothpaste. The global food industry first introduced it in the 1980s.
The WHO said the International Agency for Research on Cancer (IARC) would continue to monitor the situation as more studies into the sweetener’s effects were conducted.
Has the announcement affected Coca-Cola stock?
The concern around aspartame has been kicking around for a couple of decades already, so in all honesty, the big announcement didn’t affect the stock much. Shares have remained largely flat, though saw a 1.1% climb on Friday.
Coca-Cola stock is currently down 3.45% since the start of 2023, but the consumer staples sector has been plagued with supply chain issues, rising costs and households with less disposable income.
The key factor will be whether the announcement hits Coca-Cola sales. In the first quarter, the company’s earnings and revenue beat analyst expectations, with sales of $11 billion being a 5% increase from the previous year. Coca-Cola’s latest earnings report is due later this month.
The bottom line
Aspartame has been on the WHO’s radar for some time, so the announcement wasn’t a huge shock. Investors should keep an eye out for a dip in sales at the likes of Coca-Cola and Pepsi, but it’s unlikely that the announcement will have a huge impact on the stocks given the health risk is low.
Who says investing has to be all work and no play? Give your portfolio some spice with Q.ai’s Guilty Pleasures Kit. It’s all about the edgier stuff — think booze, tobacco, and betting companies. The Kit’s brainy AI gets to work predicting which ‘offbeat’ stocks are set to boom and shuffles the holdings to keep you in the green.
Download Q.ai today for access to AI-powered investment strategies.
