Crisis in the Diet Market

The ban on cyclamates, ordered by HEW Secretary Robert Finch last week, might hit millions of weight-watchers in the waistline, but it is a real body blow to the rich diet-food industry. In the 20 years since cyclamates were discovered, sales of products containing the nonnutritive sweeteners have risen to $1 billion annually. An estimated 21 million pounds of cyclamates will be consumed this year. The biggest manufacturer, Chicago's Abbott Laboratories, figures that cyclamates account for 4% of its sales, which were $351 million last year.

Worst hurt will be the processors of foods containing the sweetener. Most of the cyclamate supply now goes into diet drinks, which have gained at least a 15% share of the market for soft drinks. There is some question whether diet drinkers will switch back to sugar-sweetened drinks or just give it all up in favor of water. Cyclamates are also used in puddings, gelatins, salad dressings, jams and jellies, ice cream and practically all diet foods. The producers of "cured" bacon commonly use cyclamates, which are cheaper than sugar. Cyclamates even go into the making of children's flavored vitamins, pickles and dog food.

Diet drinks containing cyclamates must be removed from shelves by Jan.1. The announcement took some producers unaware. Instead of trying to fight the ban, Coca-Cola officials say that they are experimenting with other "formulations" for their Tab and Fresca diet drinks, and will probably switch to some other low-calorie sweetener. PepsiCo, which was obviously not caught napping, immediately announced that it will begin marketing within a few weeks cyclamate-free Diet Pepsi-Cola "with a touch of real sugar."

General Mills, General Foods and other major food processors that have extensive low-calorie lines will most likely change to some other sweetener. "The public will continue to look for other diet products rather than return to sugar products," says Marvin Eisenstadt, an official of Cumberland Packing Corp., producers of Sweet 'N Low, a sugar substitute made of saccharin and a cyclamate. It is unlikely, however, that dieters will switch to saccharin, since it often leaves a bitter taste. Obviously a big pot of sugar awaits the inventor who can formulate a new product that is safe, sweet and noncaloric.

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