Changing Color Specs: A Solution to Market Uncertainty

What is a buyer to do when faced with another round of tariffs on the largest exporter of raw sugar in the world? At Sugaright, we live by the mantra "never waste a crisis". If your company has been resistant to accept higher color sugar specifications, this may be the time when innovative solutions become a necessity to maintain profitability.

Change is never easy in large companies; often perceived as too risky. But when happens when maintaining the status quo is actually the riskiest option? Innovative competitors have already made the switch. Doing nothing is actually doing something.

Higher Prices: A New Norm

Experts predict that high sugar prices are here to stay for the short (and perhaps long-term) due to 1) inflationary pressures 2) a shortage of tariff free sugar 3) higher labor costs, 3) higher freight and finance costs, 4) competition from other more profitable crops and of course 5) the always present risk of adverse weather conditions in both cane sugar and beet sugar growing areas domestically and globally.

Though many factors that contribute to these high prices are out of our direct control (weather, politics), CSC Trading and Sugaright have identified areas where innovation and investment have created long-term solutions to price volatility and supply risk.

Less Processed, Lower Costs, More Sustainable

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 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, beverage companies and other food processors have seen no difference in finished product quality.

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.

These buyers now find themselves in the enviable position of having greater options for supply, no longer dependent on a handful of higher cost options.

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.

Refitting a Plant to Take Liquid Instead of Dry Granulation Sugar

With higher labor and higher sugar prices, the ROI of such projects and pay-back times have improved due to labor efficiencies and reduced product waste. It may be time to take a new look at this option. The Sugaright Engineering Team is here to offer guidance.

Location, location, location

Our 6 liquid sugar micro-refineries are located close to major food manufacturing areas. This means lower transportation costs that get passed on to the customer. Shorter routes also improve reliability.

A Global Source of Raw Sugar

As a leading importer of raw sugar into the US, CSC Trading has access to a wide global supply network. This sourcing strategy reduces uncertainty due to possible tariffs and retaliatory actions from specific countries.

We welcome the opportunity to share the Sugaright Solution to your teams. Please contact us to set up a meeting to learn more.