Dive Brief:
- Berkshire Hathaway chairman and CEO Warren Buffett and vice chairman Charles Munger supported the benefits of drinking soda over opponents' argument about health implications at the company's annual meeting.
- Buffett said he preferred to get his calories from foods and drinks that "make me feel good," such as soda. "I have not seen evidence that convinces me that it’ll be more likely I reach 100 if I suddenly switched to water and broccoli," he said.
- Munger argued that it was a "ghastly error" for soda opponents to ignore the benefits of soda, such as adding flavor to water, which may encourage people to drink their daily recommended level.
Dive Insight:
Buffett has a point. There's a reason even health-conscious consumers love to indulge, particularly in foods like chocolate and salty snacks or soda. Indulging makes people happy, at least in the moment. It's why despite outcries against sugary products, sales for certain sugary products haven't fallen in recent years (except soda and fruit juice).
However, happiness in the moment doesn't always equate to health in the long term. Therein lies the collective concern about soda for consumers and a number of legislators trying to push soda taxes. Obesity rates have skyrocketed since the demonization of fats gave rise to foods with more sugar and artificial sweeteners, and soda has been named a culprit in the country's public health debacle.
Buffett's perspective clearly comes from an economic point of view as much as a preferential taste one — his investments in Coca-Cola and Kraft Heinz display his confidence in the challenging sectors.
Manufacturers are now blurring the lines between what can be seen as an indulgence and what consumers deem healthier. Soda manufacturers like Coca-Cola and PepsiCo have introduced mini-cans to enable consumers to indulge in smaller sizes of soda. Both have also embraced varieties sweetened with stevia instea of high fructose corn syrup. PepsiCo also recently released a new craft variety called 1893 that uses cane sugar instead of high fructose corn syrup, as consumers now believe the former is better for you.
The same goes for categories like salty snacks, such as potato chips, or even chocolate, with dark chocolate currently being held as a healthier variety. With the right ingredient switches, a reduction of sodium, and processing methods that involve fewer chemical additives, some of these products could be seen as a guilty pleasure and still accommodating demands for better-for-you products.