A Colorful Solution to Higher Sugar Prices

For the past several weeks we have shared our opinion that higher sugar prices are here to stay for a while due to 1) higher freight costs, 2) a shortage of tariff free sugar into the US and 3) adverse weather conditions in both cane sugar and beet growing areas domestically and globally. Sugaright is proud to offer less processed, economical alternatives to water white sugar as a solution to long-term price volatility.

Some History

Back in 2010 food companies were caught short when refined beet sugar prices soared to almost 60 c/lb and world sugar prices reached a 29-year high of nearly 40c/lb. Additionally, the demand for non-GMO cane sugar increased as food companies sought a replacement for HFCS. The graph below also shows how since 2000, US beet sugar prices have been much more volatile than cane sugar prices. As cane sugar can be imported from many different geographies, these wider supply options reduce volatility over the long-term.

Though many of the factors that contribute to this price volatility (then and now) are out of our direct control (weather, politics); astute buyers looked for suppliers who can help them manage this on-going risk.

Sugaright became the liquid sugar supplier of choice when we asked the industry to "Change the Way they Think About Liquid Sugar" by offering less expensive, and environmentally friendly options to traditional water white refined sugar. Our Sugaright Selective Separation Refining process removes what you don’t want (microbes, heavy metals and some color) and leaves everything else.

Buyers at innovative companies saw the immediate and long-term benefits of modifying color specifications to allow for the darker colors in their products. R&D teams quickly discovered that in ice cream, yogurt, plant based beverages, dairy based beverages and coffee creamers, 350 RBU color liquid sugar has shown no significant difference in color and flavor compared to the old industry standard of 35 RBU. And now bakeries, cereal makers, and other food processors have seen no difference in finished product quality as well.

The ice cream pictured above was made with 350RBU Liquid Sugar which has become the new industry standard for most dairy and plant based products.

Deju Vu All Over Again

As we find ourselves in a similar market dynamic, we still want to be that supplier. The benefits are many:

Increased options for sugar supply reduces price volatility
Reduction in refining steps offers long term cost savings.
Significant savings in energy and water use making higher color options the more sustainable option.
The small amount of color that remains behind is a good antioxidant.
Conveniently located micro-refineries minimize local freight distances and cost

Case Study: A Quick Pivot

When the beet growers declared force majeure in 2019 due to freezing conditions, those food companies that had already changed their color specs pivoted quickly to replace beet sugar with Sugaright liquid sugar. They could, so they did.