| This is the last CSR Newsletter of the Fall semester. Happy Holidays and I will see you in the New Year! |
We know we are finally getting serious about obesity and related health issues when we raise the prospect of taxing chocolate:
"In the U.K.—where people eat more chocolate per head than anywhere but Russia—a government report shows the industry has made little progress toward a 2020 deadline to cut sugar. That has prompted health campaigners to call for a tax on chocolate similar to a levy on sugary soft drinks, which in several countries has reduced consumption or propelled reformulation."
The possibility of regulation has arisen due to long-standing efforts by confectionary makers to reduce the amount of sugar in their products that initially made progress, but have recently stalled:
"Four years ago, England's public-health agency said it wanted the food industry to help reduce obesity by voluntarily reducing overall sugar by 20% between 2015 and 2020 in products including chocolate, breakfast cereal, yogurt, spreads and desserts. But a report published by the agency last month showed sugar reduction of 3% in 2019 from 2015 levels. Chocolate lagged behind other foods, with retailers and branded manufacturers cutting sugar by 0.4% per 100 grams over the past five years. The out-of-home sector, which includes coffee chains and sandwich shops, reported a 10.7% rise in sugar content per 100 grams of chocolate over the same period."
This approach of taxation has worked with other unhealthy foods and drinks, so no reason not to think it could also work with chocolate:
"The burgeoning scrutiny presents new risks and challenges for global chocolate companies such as KitKat maker Nestlé SA and Toblerone-owner Mondelez International Inc., with the U.K.'s regulation on alcohol, smoking and plastic waste historically influencing policy elsewhere."
The UK is becoming increasingly strict on the ingredients in such products, as well as companies' abilities to advertise them to consumers:
"The U.K. recently began soliciting views from companies and the general public on its proposal to ban any online advertising for food and drinks high in salt, fat and sugar—including chocolate. The move would extend a ban announced this summer on advertising such foods online or on television before 9 p.m. A separate proposed ban on 'buy one, get one free' promotions for these foods could reduce U.K. sales by more than £3 billion, says research firm IRI."
But, according to the chocolate makers, sugar is an integral ingredient in their products:
"The average bar of chocolate is roughly half sugar. Reducing that amount affects texture, size and how quickly it melts. Sugar provides bulk; replacing it with artificial sweeteners—commonly used in drinks—doesn't work because their intensity means they are needed in far lower quantities. While drinks makers can top up volumes with water or juice, executives say there isn't an obvious substitute in chocolate."
Nevertheless, the appetite for regulation is growing:
"The U.S. Food and Drug Administration this year began requiring larger food companies to include an additional line for added sugar on nutrition labels. Smaller companies must comply by January. Mexico last month began requiring front-of-pack labeling describing the health hazards posed by products high in sugar, calories, salt and fat. Hershey Co. Chief Executive Michele Buck recently said the company was keeping a close eye on how consumers responded."
But, never give up hope. Luckily for us, science has been taking this issue seriously for many years and, despite the market failure of many confections containing sugar-alternatives, there is a natural substance that might offer a pathway forward:
"To slash calories as well as sugar levels, Tate & Lyle PLC is betting on allulose, a natural sugar found in figs and raisins that it is making from corn. Allulose tastes like sugar and adds bulk but passes through the body rather than breaking down into calories, said Abigail Storms, the ingredients company's head of sweeteners. The FDA recently said allulose doesn't have to be treated as a sugar or an added sugar on pack labels, and confirmed its calorie content is far lower than table sugar."
Take care
David
David Chandler
© Sage Publications, 2020
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Chocolate Makers Struggle to Cut Sugar
By Saabira Chaudhuri
November 23, 2020
The Wall Street Journal
Late Edition – Final
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