14 Nov 2018 --- Tate & Lyle has announced that, effective from November 1, 2018, its North American Food & Beverage Solutions business implemented price increases of between 3 and 11 percent on a range of food and beverage offerings. These adjustments are required following significant cost increases over the past 12 months in areas such as materials and logistics and transportation due to substantial truck shortages, the company reports.
The price increases are restricted to the North American market and concern its specialty starches, fibers, oat products, specialty and high-intensity sweeteners, and stabilization and functional systems. Customers are encouraged to contact their Tate & Lyle account manager for further details, says the company.
Speaking to FoodIngredientsFirst, a Tate & Lyle spokesperson says: “The price increase is down to higher input costs in materials and transportation in North America, which are being seen across the sector.”
“As we announced last week, in North America, we saw good progress in the first half of the financial year across our range of ingredients and solutions and across categories including beverages, dairy, nutrition, bakery and soups, sauces and dressings,” adds the spokesperson.
Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams.
Last week, FoodIngredientsFirst reported that Tate & Lyle performed “in line with expectations” after its half-year results showed flat profit growth with sales decreasing by 1 percent to £1.38 billion (US$1.81 billion). The food ingredients maker reports having fought off inflationary headwinds to deliver growth in adjusted profit before tax and steady cash flow despite cost inflation from materials.
Key highlights for the six months to 30 September 2018 include Food & Beverage Solutions accelerating volume growth, including a 3 percent increase in North America.
The company also reported a 2 percent increase in adjusted profit before tax and a 3 percent increase in Food & Beverage Solutions profit to £77 million (US$101 million).
The outlook for the year ending March 31, 2019, remains unchanged.
In May, Tate & Lyle PLC announced it would acquire a 15 percent equity holding in Sweet Green Fields, one of the largest privately held, fully integrated global stevia ingredient firms.
Tate & Lyle and Sweet Green Fields’ partnership will seek to use stevia ingredients and solutions to show food and beverage manufacturers how they can reduce sugar levels in a range of products. This week, FoodIngredientsFirst published a Key Interview with Tommy Lykke Husum – Senior Product Manager SFI – Fructose, Sucralose and Stevia at Tate & Lyle.
Tate & Lyle is also offering ingredient solutions across several product categories, including drinks, condiments and dairy, specifically targeting the Middle East. The company is showcasing its tailored ranges and helping manufacturers seeking solutions for sugar or calorie reduction, specific texture profiles or enriching products with fiber while reducing cost.
At the Gulfood Manufacturing Trade Show in Dubai last week, Tate and Lyle showcased its new stevia ingredients, including the newly launched OPTIMIZER Stevia 4.10 and INTESSE Stevia 2.0, which, according to the company, are the next steps in Tate & Lyle’s portfolio of sugar replacement solutions.
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