“Rising Demand for Allulose: Tate & Lyle’s Journey to Meet Consumer Preferences for Low-Calorie Sweeteners”
When Tate & Lyle launched its allulose line in 2015, the company invested in a marketing initiative to familiarize consumers with this low-calorie natural sweetener. Abigail Storms, who currently serves as the global head of sweeteners at Tate & Lyle, shared with Ad Age that the campaign aimed to persuade those in the food industry of the authenticity of this sweetener, which boasts 70% of the sweetness of sugar while containing 90% fewer calories. “When you mention low-calorie sugar, especially to seasoned R&D professionals, it can sound almost too good to be true,” she explained. “There’s a mix of skepticism, curiosity, and excitement regarding the potential.” Over the years, allulose, a close chemical relative of sugar known for its similar bulk and mouthfeel characteristics, has become increasingly attractive. In 2019, the Food and Drug Administration ruled that allulose does not need to be included in the total sugars on Nutrition Facts panels because it is metabolized differently than traditional sugar.
Fast forward six years, and allulose has garnered a significant following. Since April 2019, a total of 161 new products featuring this sweetener have been launched, with many more in the pipeline. Due to this rapid increase in popularity, some manufacturers have encountered challenges in securing allulose supplies from Tate & Lyle, as indicated in recent earnings calls. In an interview with Food Dive, Storms noted that the company is diligently working to meet the growing demand. “This surge has been much more intense than we anticipated,” she remarked.
While Tate & Lyle expected the ingredient to be well-received, Storms mentioned that the timing of the surge aligns with the typical two-year development cycle for food or beverage products, which coincides with the FDA’s decision on allulose. Additionally, a report from FONA International indicates that half of adult consumers are actively seeking ways to reduce their overall sugar intake, prompting manufacturers to search for substitutes that closely mimic sugar’s taste and mouthfeel. The COVID-19 pandemic has also shifted consumer preferences towards healthier eating, further driving the demand for lower-sugar options.
Tate & Lyle markets its allulose products under the Dolcia Prima brand, offering two forms: liquid allulose syrup, primarily used in beverages, ice cream, and certain confections, and crystalline allulose, suitable for non-fat baked goods and tabletop sweeteners. Storms confirmed that the company is ramping up allulose production each month and is currently ahead of demand for the liquid form. However, meeting the demand for crystalline allulose, which is favored for its versatility in manufacturing, remains a challenge.
Tate & Lyle is actively working to expand its production capacity for crystalline allulose, driven by extremely high demand rather than other industry-wide challenges such as rising commodity costs or labor shortages. Storms did not disclose the company’s current production capacity or output but emphasized that Tate & Lyle holds the largest allulose manufacturing capacity globally, with one facility dedicated to its production in the United States. Other manufacturers, including Ingredion, have also noted that the soaring popularity of allulose has made it difficult to keep up with demand.
During an investor call following Tate & Lyle’s latest earnings report in May, CEO Nick Hampton highlighted the growing importance of allulose to the company’s business. He mentioned that they are exploring ways to increase production capacity, and the rising interest in allulose is catalyzing the company’s growth. Allulose has found its way into various products, with bars being the most favored application, followed by sweet biscuits, cookies, dairy ice cream, frozen yogurt, cold cereals, baking ingredients, and tabletop sweeteners.
Despite the high demand for some of Tate & Lyle’s allulose products, Storms indicated that the company continues to collaborate with new clients seeking allulose-sweetened products or reformulations. Tate & Lyle’s application and technical service teams provide formulation support while being transparent about the surge in demand and potential timing issues for product availability. Furthermore, the company remains committed to enhancing awareness of allulose among consumers, manufacturers, and healthcare professionals, thereby fostering additional business opportunities over time.
At present, Storms acknowledged that there isn’t much to disclose about allulose availability, but she remains optimistic that supply will soon catch up with demand. “When faced with a demand surge that increases almost weekly, managing how to meet that demand becomes crucial,” Storms stated. “That is our current focus—ensuring we have the flexibility and capacity to satisfy this growing demand.”
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