Coca-Cola Co and Pepsi Co are both pursuing a new natural sweetener which comes from the South American stevia plant.
The plant could be used to create natural sugar substitutes, with both industry giants set to launch their own sweeteners using the non-calorific herb.
Last year, Coca-Cola announced its partnership with Cargill which will see the creation of Truvia, a stevia-based product.
However, Pepsi has beaten its rival with the launch of PureVia which will debut in its enhanced water brand SoBe Life.
The new sweeteners are pending clearance from the Food and Drug Administration before launching.
PureVia will be used in place of sugar in food and drink products, with a tabletop version set to launch in autumn.
The natural, no-calorie sweetener could help the ailing beverage industry in the US, particularly in the carbonated drinks business as health-conscious consumers are turned-off artificial sweeteners.