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Tate & Lyle shifts to sugar alternatives

The ingredients maker is looking to focus on low calorie substitutes for sugar that appeal to increasingly health conscious consumers
May 26, 2017

Ingredients maker Tate & Lyle (TATE) may have its roots in the sugar business, but its more recent strategy is predicated on contemporary market trends. Since it sold off its cane sugar division in 2010 the group has been putting a greater focus on low calorie sugar substitutes to appeal to more health-conscious consumers - but it's the group's operational performance that catches the eye this time around.

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There was a noteworthy performance at the bulk division, which operates mainly in North America and saw a 32 per cent increase in adjusted operating profit at constant currencies. Underlying sales at the speciality food ingredients business slipped back slightly, although the division posted a 5 per cent increase in profits as margins firmed through the period. The end result was an 18 per cent rise in adjusted group profit to £264m.

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