LONDON — The price of Splenda sucralose may drop about 15% in the 2015 fiscal year, according to a Feb. 13 interim management statement from its supplier, London-based Tate & Lyle, P.L.C. The statement covered the third quarter of fiscal year 2014 ended Dec. 31, 2013.
“In Splenda sucralose, we have recently renewed a number of customer contracts, some of which are multi-year,” Tate & Lyle said. “These have been completed in a dynamic market where the competitive environment has intensified, driven we believe by a significant overhang of unsold Chinese sucralose.
“With these contracts in place, we anticipate the rate of price decline in Splenda sucralose will increase in the final quarter and, based on what we see today and current market dynamics, expect prices in the 2015 financial year to be around 15% lower than the current financial year. We continue to see good long-term opportunities for growth in the market for Splenda sucralose leading to operational efficiencies as we continue to fill our McIntosh (Ala.) facility.”
Splenda sucralose, a high-intensity sweetener, is part of the Speciality Food Ingredients segment of Tate & Lyle. In the third quarter in Speciality Food Ingredients, softness in developed markets offset strong growth in emerging markets. Volume and sales growth of Splenda sucralose were in line with expectations.
In the company’s Bulk Ingredients segment, improved performances came in the third quarter from U.S. sweeteners and U.S. ethanol relative to the previous year’s third quarter. Lower returns from co-products held back the performance of Bulk Ingredients overall.