Fizzy Battle of Freedom and Regulation
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23 OCTOBER 2023
Fizzy drinks, also known as soft drinks, carbonated beverages, or soda, have a universally recognised taste. That distinct blend of sweetness and carbonation has a unique appeal that transcends borders and cultures.
According to Statista, just the top two fizzy drink companies spend about $3Bn to $4Bn annually for their advertisements.
The annual revenue of these top two companies is about $30 to $40 Bn, and if their market capitalisation is to be measured, they would be included in the G-20 list of countries.
These finances give these companies immense leverage with the respective governments. They can also boast of giving employment to millions in manufacturing, sales, distribution and resales.
Each year, about 350 Bn litres of soft drink is sold worldwide, with an average consumption of 50 L per person per year.
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...top two fizzy drink companies spend about $3Bn to $4Bn annually for their advertisements
What is it about these beverages that captivate the taste buds of the young and old alike?
One of the primary reasons is the power of advertising and marketing. Fizzy drinks are among the most heavily advertised and marketed products globally, and their campaigns often target young people.
These advertisements associate fizzy drinks with fun, excitement, and socialisation, making them irresistible to the youth. The message conveyed is clear: consuming these beverages enhances your enjoyment of life.
Fizzy drink companies are masterful in creating an allure around their products. The mind games they employ are powerful and worth exploring.
One common tactic is emotional appeal. Fizzy drink advertisements associate their products with positive emotions like happiness, fun, celebration and friendship.
They create the impression that consuming these drinks will lead to a better mood and an overall more enjoyable experience.
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...if their market capitalisation is to be measured, they would be included in the G-20 list of countries
The sensory appeal is a significant factor. Fizzy drinks are marketed not just for their taste but also for the sensory experience they offer.
The sound of carbonation, the refreshing taste, and the tingling bubbles are prominent in marketing campaigns. Indian market is targeted as comforting in the summers.
Youth and popularity are themes frequently employed. Many advertisements target younger demographics, associating their products with youth culture, popularity, and social acceptance.
The message is that drinking these beverages will make you more attractive and part of the “in-crowd.”
Nostalgia is another tool in their arsenal. Some fizzy drink companies tap into the well of nostalgia, evoking feelings of childhood or past experiences. Familiar slogans, logos, or retro packaging can transport consumers back in time.
Celebrities often grace the screens, endorsing the product in fizzy drink commercials, creating a perception that if you consume these products, you’ll be more like these influential figures.
The allure of fame and fortune becomes intertwined with the beverage’s appeal.
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an average consumption of 50 L per person per year
Let’s turn the spotlight onto Indian celebrities who have endorsed fizzy drink brands. In the vibrant world of Indian cinema, sports and entertainment, numerous stars have lent their charisma to these beverages.
These endorsements are not just marketing strategies; they are an integral part of the industry.
Off late, some sporting celebrities have declined to endorse fizzy drinks. It is a trend that is catching up with the debate between the content in the bottle versus the sheen due to advertisements.
Limited-time offers are a classic marketing strategy that plays on the fear of missing out. Promotions with limited availability create a sense of urgency and scarcity, encouraging people to purchase quickly.
Companies often attempt to give their products a “health halo.” They promote low-calorie or sugar-free versions, creating the impression of a healthier choice, even when artificial sweeteners are used.
Large portion sizes and bundle deals encourage consumers to buy more than initially intended, subtly playing on the desire for value for money.
Fizzy drinks have their dark side, too.
The primary concern revolves around the high sugar content in many fizzy drinks. The sugar load in these beverages is immense, and excess sugar intake has been linked to various health issues, most notably obesity, type 2 diabetes, and heart disease.
The sweetness that we find so appealing also hides a potential health landmine.
Furthermore, fizzy drinks are not just guilty of empty calories; they’re culprits of “liquid calories.”
These beverages provide little to no nutritional value apart from the calories derived from sugar, and consuming them can quickly add up to a significant calorie intake.
The result? Weight gain and obesity, particularly in children and adolescents.
Another concern, often overshadowed, is the impact on dental health. The high sugar and acidity levels in fizzy drinks can erode tooth enamel and lead to dental cavities, impacting oral health.
It is an apprehension that has dental professionals encouraging moderation when it comes to consuming these beverages.
With these concerns in mind, one might wonder why governments don’t take a more active role in regulating the sale and consumption of fizzy drinks.
After all, if these beverages can contribute to such significant health issues, shouldn’t stricter controls be in place?
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...fizzy drinks are not just guilty of empty calories; they’re culprits of “liquid calories”
The answer, however, is not so straightforward.
Governments often tread lightly in this area, preferring to allow consumers to make their own choices.
This hands-off approach stems from the belief in personal freedom—the idea that adults should have the autonomy to make informed decisions about what they consume.
Furthermore, the principles of a free-market economy often prevail. Private businesses, including fizzy drink manufacturers, are free to produce and sell their products as long as they comply with the relevant laws and regulations.
In this view, the government’s role is to ensure that consumers have access to accurate information to make informed choices rather than making choices on their behalf.
Government regulations and guidelines related to fizzy drinks vary by country, but the Food Safety and Standards Act 2006 serves as the primary legal framework in India.
It sets standards for food safety and quality and provides for establishing the FSSAI.
The Food Safety and Standards Authority of India (FSSAI) is the country’s principal regulatory body overseeing food and beverage standards. Some key regulations and guidelines related to fizzy drinks in India include:
FSSAI Regulations: The FSSAI has specific regulations on carbonated water, carbonated fruit beverages, and other soft drinks.
These regulations cover permissible ingredients, labelling, packaging, and advertising.
The FSSAI sets Maximum Residue Limits (MRLs) for various substances, including pesticides and contaminants, to ensure that soft drinks are safe for consumption.
Manufacturers and distributors of soft drinks must obtain licenses or register with the FSSAI to ensure safety and quality standards compliance.
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Governments often tread lightly in this area, preferring to allow consumers to make their own choices
Packaging and Labelling: Regulations govern the packaging and labelling of soft drinks to provide consumers with essential information about the product, including nutritional information and safety instructions.
However, not all information on the labels is understood by the consumers. Most of the time, they are chemical names straight from the chemistry textbook.
The information makes no sense to the average educated person on the street.
In another layer of data interpretation, it isn’t easy to associate the consequences of the chemical names with health. It would require a professional, scientific researcher to make the association.
Hence, however detailed, the labelling is of insignificant use to the average consumer.
BIS Standards: The Bureau of Indian Standards (BIS) sets standards for soft drinks to ensure their quality and safety.
Regulations specify the maximum allowable limits, “Contaminant Limits”, for various contaminants in soft drinks, including heavy metals and microbiological contaminants.
Despite this approach, some governments have acknowledged fizzy drinks’ potential adverse health effects. They have taken steps to address these concerns, primarily through taxation.
Taxes on sugary beverages aim to discourage consumption and generate revenue for public health programs.
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...However detailed, the labelling is of insignificant use to the average consumer
Additionally, regulations have been implemented to ensure transparent labelling, marketing, and advertising of fizzy drinks.
The goal is to empower consumers with information and make them more aware of the potential health risks associated with excessive fizzy drink consumption.
While the battle between freedom of choice and regulation is being fought in the market for fizzy drinks, access to understandable information for making the right choice is questionable.
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