RE: Recent Article13 Sep 2024 20:29
Very good, Mol.
SweetBiotix has serval versions, seven if my old grey recalls correctly. SOH says these make SweetBiotix competitive across a range of food & beverage options.
While artificial sweeteners are often perceived to be cheaper than pure sugar products, this may not always be true when considering all factors:
Artificial sweeteners don't provide the same functional benefits as sugar (e.g., preservative qualities, texture improvement), so additional ingredients may be needed to compensate.
The cumulative cost of artificial sweeteners, additional additives, and preservatives may be higher than the cost of using natural sugar.
The cost-effectiveness of sugar alternatives needs to be evaluated considering factors beyond the ingredient price, including impact on taste, consumer satisfaction, and potential sales impacts.
It's an old note from 2018, but it gives you an idea of the complexity OPTI is dealing with. I can't locate the global note.
Impact of Sugar Taxes
Sugar taxes, like the Soft Drinks Industry Levy in the UK, can significantly impact costs for manufacturers:
In the UK, drinks containing 8g or more of sugar per 100ml are taxed at £0.24 per litre, while those with 5-8g of sugar per 100ml are taxed at around 18p per litre.
The tax has led to widespread reformulation of products to reduce sugar content. By 2019, the percentage of drinks in UK supermarkets with sugar content over 5g per 100ml fell from 49% to 15%.
Where sugar levels remained above the taxation threshold, prices were not always raised to reflect the full taxed amount. The average price increase for drinks with more than 8g sugar/100ml was around 75p per litre.
In other countries, like Mexico, a 10% tax on sugar-sweetened beverages led to price increases of about 15%.
The impact of these taxes on manufacturers' costs can vary. Some may absorb part of the cost, while others may pass it on to consumers or reformulate their products to avoid the tax.
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