Bob in CT said:"Splenda uses sugar in the manufacturing process, though it is burned off
and is not part of the final product."
http://www.msnbc.msn.com/id/18598430/
Some selections from the article that struck me.
"...The company says consumers prefer the taste of Splenda, leading to
its huge market gains since its 2000 debut."
I concur. Though Equal doesn't taste bad either. Funny thing about
Equal/Nutrasweet. Once upon a time, it was some small company that had
to fend off a Japanese company that made the same thing but with a
better process, but no right to market it. Then, they got bought by
Monsanto. Then, Monsanto sold it off when having the swirl on your
product was no longer a plus. I don't remember if they spun it off
into Merisent or if they sold it to Merisent. Either way. The key
thing was this: it was a product in decline and Monsanto had bigger
fish to splice genes on.
"Splenda, introduced in 2000, is used in more than 4,000 food and
drink products, from Diet Coke to Juicy Fruit gum. Separately, it had
60 percent of the consumer artificial sweetener market last year,
according to the research firm Information Resources Inc.
Equal and Sweet'N Low each held about 14 percent of the consumer
market, and appear to be on a downward slide."
I'm gonna guess, just intuitively (actually, in B-school we did a case
about Nutrasweet, in the time before Splenda was approved in the US),
that the consumer packaged goods market is a much bigger buyer of
Splenda than the home consumer market. So, coke, pepsi, unilever etc
probably buy more than 65% of the total market. That said, very
interesting that Splenda has gone from 0-60% market share in under 8
years. That's a pretty strong argument for sour grapes, because that
60% had to come from somewhere, and I'm betting a large part of that
was Equal. Sugar probably a smaller loser (alternatively, sugar was
going to decline to artificial sweetener, so Splenda's gains there can
be viewed as Equal's losses as well). S&L just rolls on. Funny thing:
We still go places and they don't have yellow packets, only white,
pink, blue. Last thing: They give the market share for Equal, but not
for generic blue packets. The blue is off patent (debatable that it
ever was on patent), so one wonders what Equal + Blue Generic market
share is.
"Chicago-based Merisant charges that McNeil made at least $183 million
in unfair profits since 2003 and that Merisant lost at least $25
million in sales because of Splenda's "sugar" claim."
Hrm. The math doesn't work here. $183 in unfair profits, but we lost
only $25 in sales? Are the other 158 Million from their product
superiority? From sugars profits? I'm unclear on how this adds up.
"McNeil says it simply has a better product with better marketing. It
told jurors it has spent $234 million promoting Splenda, more than
twice the $108 million spent on Equal in the same period."
That's a big marketing dollar edge. Of course, they were the entrant,
so you'd expect them to have to work harder, unless people think the
other product causes brain cancer or something.