Very interesting, thanks Roy!!


--- In Atkins_Diet_Support@yahoogroups.com, "Roy" <rcrockett2000@y...>
wrote:
> Splenda shortage
>
> Demand for the artificial sweetener has outpaced
> production abilities. Small food makers imperiled.
> December 3, 2004: 5:04 PM EST
>
> LOS ANGELES (Reuters) - Small U.S. makers of foods
> and drinks sweetened with Splenda are making
> contingency plans as big food companies get the
> lion's share of the popular sugar substitute,
> which is in short supply.
>
> Small companies are stockpiling the zero-calorie
> diet food ingredient and considering other ways to
> sweeten their products after warnings from Splenda
> maker Tate & Lyle PLC that future supplies will be
> based on past demand.
>
> Splenda's popularity has soared as dieters
> following low-carbohydrate regimens like the
> Atkins and South Beach diets embraced it because
> of its ability to withstand the high heat of
> cooking without breaking down or losing flavor.
>
>
> Unlike other sweeteners, Splenda, whose chemical
> name is sucralose, is also said to have no
> aftertaste.
>
> As consumers have clamored for it, big companies
> likePepsiCo Inc. (Research), General Mills Inc.
> (Research), and Unilever PLC have begun using
> Splenda in everything from Pepsi Edge, a low sugar
> soft drink, to reduced-sugar Trix cereal to Ben &
> Jerry's Carb Karma ice cream.
>
> Britain's Tate & Lyle has said demand for Splenda
> has far exceeded expectations, and the company is
> no longer taking on new customers in the United
> States until new production facilities come online
> in 2006 and 2007.
>
> The Splenda brand is owned by Johnson & Johnson
> (Research) unit McNeil Nutritionals Worldwide, but
> Tate & Lyle is the sole manufacturer of sucralose.
>
> Pepsi, General Mills, and Unilever all said they
> do not expect to be hurt by tight Splenda
> supplies, but smaller manufacturers were more
> concerned.
>
> Betty Jo Steel, president of sugar-free sauces and
> salad dressings maker Steel's Gourmet Foods in
> Bridgeport, Penn., said she expects the needs of
> such formidable companies to come before her own.
>
> "If people are buying on contract, and most of
> them are, then they are going to be handled first
> as opposed to people who are just ordering on a
> regular basis like us," Steel said.
>
> Steel added that she would consider using a
> combination of sweeteners if her allocation of
> sucralose is not enough to meet demand.
>
> Another manufacturer said he was not as concerned
> about a supply disruption as he was about a
> potential price increase on the sweetener because
> of tight supplies.
>
> "It could drive the cost up, which would drive up
> the cost of our products and impact consumers and
> our business" said Stephen Jones, vice president
> and general manager of Maple Grove Farms of
> Vermont, which sells sugar-free maple syrup and
> salad dressings.
>
> Maple Grove is more fortunate than some other
> small companies because it is a unit ofB&G Foods
> Inc. (Research), Jones said, and Splenda
> allocations can be shifted back and forth
> depending on which products are in higher demand.
>
> B&G's other products include Emeril's Original
> seasonings and Polaner fruit spreads.
>
> Other small businesses, however, were concerned
> that limitations on the amount of Splenda they buy
> could impact their ability to introduce new
> products and increase sales.
>
> Baja Bob's, a San Diego, California-based maker of
> sugar-free drink mixes, recently launched a new
> line of martini mixes. Its co-founder, Craig Cook,
> hopes the company will have the funds to stockpile
> sucralose during times of the year when demand for
> drink mixes decreases, such as the winter.
>
> "This way if we have a sudden growth spurt we are
> going to have it available to us," Cook said. Top
> of page
>
>
>
> Roy Crockett
> www.ricrockett.com
> roy@r...
> Northern Virginia
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