LIQUID SUGARS AND BLENDS

Transcription

1 LIQUID SUGARS AND BLENDS Prepared by: CPL Business Consultants The Manor House, Howbery Park, Wallingford, Oxfordshire, OX10 8BA Tel: , Dr Steve Lisansky Dr Robert Harwood Dr Esther Hunter June 2004

2 Liquid sugars and blends - ii TABLE OF CONTENTS OBJECTIVE AND BACKGROUND... 1 METHOD... 1 PRINCIPAL FINDINGS... 2 Markets...2 Sugar Companies and Products...4 Customer Views...5 Customer Trends...7 CONCLUSIONS... 8 Markets...8 Sugar Companies and Products...9 Customer Trends...10 RECOMMENDATIONS LIQUID SUGAR MARKETS, DRIVERS AND BARRIERS Overview...12 Market drivers liquid sugars and blends...13 Possible benefits for customers Possible benefits for sugar companies Barriers to use - liquid sugars and blends...14 Disincentives for customers Disincentives for sugar companies Success factors...15 Liquid sugars Blends Liquids - volumes and values...17 Liquids Market drivers...20 Market drivers customers views...21 QC/QA and safety issues Improved quality and colour Avoiding particle size changes Operational, logistical and convenience advantages Use of available equipment Flexibility Cost reduction Occasional operational advantages Barriers Customers views...23 Cost and transportation Cost of capital equipment Equipment maintenance Shelf-life Reduced flexibility Availability of equipment in existing plants Reluctance to be locked in to suppliers Willingness and ability to tailor sweetener blends... 27

3 Liquid sugars and blends - iii Previous conclusions (1995) on customer views of sugar blends Market drivers Suppliers views...28 Customer demand Defence to competition Gain customer loyalty Better margins Quota change Barriers Suppliers views...30 Historic failure Marketing, sales and customer/technical support Poor understanding of customer needs Absence of additional profit Transport Responsibility for quality and microbiological safety Reluctance by customers on safely and hygiene Cannibalisation Dependence on other suppliers Quotas on blend ingredients The misconception standard blends will be useful LIQUID MARKETS - SUCCESS FACTORS Liquids in general...34 Pro-active approach Process advantages Geographical Location Successful marketing and customer/technical support Customers with equipment to use liquids Sufficient volumes Identification and market focus of customers Cultural openness to the idea and a suitable business structure Sweetener Blends...36 Marketing problem solving In-house support In-house ingredient capability Independent business unit Customer understanding Follow customer trends Make longer term investments MARKET TRENDS FOR LIQUID SUGARS AND SWEETENER BLENDS SUGAR PRODUCTS Products...41 Overview of liquid sugar producers & products...43

4 Liquid sugars and blends - iv SUGAR COMPANIES Europe companies United States companies US Blenders companies Other Producers of Liquid Sugar companies CUSTOMERS FOR SUGARS AND LIQUID SUGARS Overview...88 Trends in the food industry & effect on sugar use...90 Beverages Bakery Confectionary Dairy / Ice Cream Grocery / Canned Goods Customer Contact Overview CONTACT REPORTS SUGAR COMPANIES companies Others Including Blenders companies CONTACT REPORTS - CUSTOMERS Bakery companies Beverages companies Confectionary companies Groceries / Canned Goods companies Icecream / Dairy companies Other company APPENDIX 1 OVERVIEW OF THE SUGAR INDUSTRY World Sugar Market European Sugar Market Overview of current events in the sugar industry APPENDIX 2 SPECIFICATIONS

5 Liquid sugars and blends - v LIST OF TABLES Table 1 Sugar Producers in Europe and Their Liquid Sugar Production...48 Table 2 Key Figures from CSM...57 Table 3 Key Figures for Eridania Beghin Say ( )...59 Table 4 Products, Brands and Markets of Eridania Beghin Say...59 Table 5 Pfeifer & Langens Product List...65 Table 6 Key figures for the sugar/sweeteners segment...68 Table 7 Tate & Lyles Sugar Products...74 Table 8 Sugar Producers in the US and Their Liquid Sugar Production...76 Table 9 Global Beverage Market Per Capita Consumption by Category Table 10 Top-10 CSD Companies (2001)...90 Table 11 Top-10 CSD Brands (2001)...91 Table 12 Global Functional Soft Drinks Market By Type (2000)...92 Table 13 Beverage Trends Table 14 Top ten UK bakeries by turnover 1999/2000 ( )...92 Table 15 UK Retail Sales of Cake and Cereal Bars by Sector ( )...93 Table 16 Market Share of Craft & Industrial Bakeries (% turnover)...93 Table 17 Ranking of Countries by Capita Sugar Confectionary Consumption (lb)...95 Table 18 Europe's Top 10 Dairy Processors...95 Table 19 Refrigerated Cultured Dairy Foods -- Sales Trends 2000 (compared to 1999)...96 Table 20 Top Ten Ice Cream Brands (Supermarkets Only - US)...98 Table 21 Companies Surveyed and Application Sectors Covered in US and EU Table 22 Types of Sugar (dry or liquid) and Blends used by Companies Table 23 and Divided by Geographical Region Types of Sugar (dry or liquid) and Blends used by Companies and Divided by Application Sector Table 24 White Sugar Production Table 25 Number of Sugar and Refinery Companies Table 26 Sugar Companies and Their Refineries Table 27 Import - Export Statistics 1998/ Table 28 Import - Export Statistics 1997/ Table 29 Import - Export Statistics 1996/ Table 30 Import - Export Statistics 1995/

6 Liquid sugars and blends - vi LIST OF FIGURES Figure 1 European Sugar Companies...19 Figure 2 Companies Contacted and View on the Future of Liquid Sugars...40 Figure 3 Raw Material, Intermediates and End Product for Orafti s Raftisweet Figure 4 Structure of the Main Parts of Suedzucker...70 Figure 5 Contacts and Their Impressions of Liquid Sugars Figure 6 Breakdown of Sugar Production by Source Figure 7 Top 5 Sugar Producing Countries ( ) Figure 8 Top 5 Sugar Exporting Countries ( ) Figure 9 Top Five Sugar Consuming Countries ( ) Figure 10 European Sugar Ratios By Company ( ) Figure 11 Average Spot Price of White London Sugar Number 5 ( ) Figure 12 World Sugar Consumption and Average consumption of Last 20 Years 189 Figure 13 Current Sugar Companies by Production Quota Figure 14 US high intensity sweetener markets...195