UK – Tate & Lyle PLC, a British multinational supplier of food and beverage ingredients to industrial markets, has expanded its sweetener portfolio with ERYTESSE Erythritol through a distribution agreement with a leading supplier of erythritol.
ERYTESSE Erythritol has 70% of the sweetness of sucrose and a similar temporal profile, with zero calories, making it useful in categories such as beverages, dairy, bakery, and confectionery.
ERYTESSE is said to add back bulking and mouthfeel when sucrose is reduced or removed from applications.
Additionally, the sweetener offers good stability in high levels of heat or acidity during processing, making it suitable for a host of formulations.
It can be used alone or in combination with natural sweeteners, like stevia and monk fruit, and high-potency sweeteners, like sucralose.
Tate & Lyle said the addition of the sweetener expands its ability to help customers deliver on consumer demand for healthier, sugar and calorie-reduced products while extending its position as the world leader in ingredient solutions for a healthy food and beverages.
The strategic partnership agreement will also provide security of supply and can meet both the short-term and long-term demands of Tate & Lyle’s customers.
The company noted that there is an increasing perception and awareness of the benefits of erythritol, with 67% of industry professionals feeling positive about the ingredient.
In addition, there is an increasing number of US consumers likely or very likely to buy a product that contains erythritol now at 23% (up from 6% in 2020).
The company cited Mintel Global New Products Database (GNPD) data, which shows the Compound Annual Growth Rate for all new product launches globally with low/no/reduced calorie claims containing erythritol for the last five complete calendar years was 22%, indicating strong and consistent demand for erythritol.
Abigail Storms, Global Head of Sweeteners, at Tate & Lyle said: “Consumers are increasingly switching to sugar-reduced products, so manufacturers are looking for more sweetening solutions that will help them reformulate and still deliver the taste and texture consumers will love.
“ERYTESSE Erythritol has a clean taste and bulking properties that make it perfect for helping manufacturers meet this demand, and as such it strengthens our existing sweetening toolbox, as well as our overall portfolio. It forms part of our commitment to transform lives through the science of food and helps our customers to meet consumer expectations for making healthy food tastier and tasty food healthier.”
In the Q2 2023 earnings, the Food & Beverage Solutions provider said the new products contributed 15% of the total Group’s revenue after achieving a revenue jump of 19%.
The Group’s revenue was up 20%, with operating profit up 29% and operating margin 110 basis points higher. In Food & Beverage Solutions, revenue was 21% higher and operating profit was 26% higher.
Generally, sucralose once again delivered steady earnings with operating profit up 8% while the sweetener platform saw 8% revenue growth impacted by the decision to exit the certain low-margin business.
New product revenue grew by 1% in the sweetener category, reflecting capacity constraints, especially in stevia.
Geographically, North America grew revenue by 14%, Asia, the Middle East, Africa, and Latin America grew revenue by 29% and revenue in Europe was 23% higher.
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