CHICAGO—Merisant Worldwide, Inc., maker of low-calorie tabletop sweeteners such as Equal and Canderel, filed for Chapter 11 bankruptcy protection Jan. 9, citing increased competition and too much debt.
The filing came less than a month after federal regulators cleared the way for Coca-Cola Co and PepsiCo, Inc. to begin using natural, calorie-free sweeteners derived from the stevia plant. PepsiCo moved to launch drinks with PureVia, a stevia-based sweetener it developed with Merisant, while Coca-Cola developed its own sweetener, Truvia, with Cargill, Inc.
Beverage makers had long sought a natural alternative to chemical sweeteners to boost U.S. soft drink sales, which have come under pressure as consumers have sought drinks they consider healthier.
Merisant sought bankruptcy protection after being unable to refinance debt maturing on Jan. 11, Moody's Investors Service said. Sales totaled $277 million in the year ended Sept. 30, but Merisant's debt load was "unsustainable," Moody's said.