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Monday, August 2, 2010                                                                                202-271-5734 (cell)

From the International Sweetener Symposium:

Candy Prices, Candy Makers’ Profits Soar

VAIL, Colo.—Grocery shoppers paid a lot more for candy this past year despite the fact that other sugar-containing product prices fell, according to the annual Sugar Price Survey released by the American Sugar Alliance (ASA) today at the 27^th International Sweetener Symposium.

“In the candy aisle, there was a near across-the-board price rise,” the study noted. “Because similar sugar-intensive products experienced price declines in 2010, ingredient costs are clearly not the culprit for candy price tags creeping upward.”

Most candy bars included in the report saw a 10-cent price increase, jumping from 99 cents in 2009 to $1.09 in 2010.  Cake mix, icing, gelatin, and ice cream, on the other hand, fell in price, with one popular frosting plummeting by 60 cents to $1.59.

Since these candy bars only include two-cents worth of sugar, the price recovery seen by sugar farmers this year is not the contributing factor.  The Sugar Price Survey turned to a March New York Times article to provide some answers.

“The recession seems to have a sweet tooth,” the newspaper reported.  “As unemployment has risen and 401(k)’s have shrunk, Americans, particularly adults, have been consuming growing volumes of candy…say candy makers, store owners and industry experts.”

And this increase in demand has led to windfall profits for many confectioners, explained the ASA, which questioned whether or not food manufacturers will sink their increased revenues into an expensive lobbying campaign that targets U.S. sugar farmers.

“Whether or not food manufacturers dust off their $1.3 billion-per-year [sugar] subsidy scheme and try to resell it during the next [Farm Bill] debate is not yet clear,” the study noted.  But, sugar producers say lawmakers and the American public appear to be shunning food manufacturers’ proposals in favor of a continuation of the current sugar policy.

This policy, they say, shined during the past 18 months when sugar shortages in other countries rocked markets and sent foreign consumers on a roller coaster ride.  Because of no-cost U.S. sugar policy, the study found that America was able to maintain “dependable domestic supplies and provide a safety net for an American industry that helps sustain 146,000 U.S. jobs in 18 states.”

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For more information about the International Sweetener Symposium or to view a copy of the Sugar Price Survey, visit www.sugaralliance.org

Symposium audio files can be downloaded at www.ASAradio.org