THE marketplace for lower-sugar drinks is ready to growth in Singapore because the warfare on sugar continues – though customers right here nonetheless have a harmful urge for food for sugary items. To not be left behind, gamers up and down the worth chain want to trip the waistline-friendly, anti-sugar wave.
“In recent times, there was a higher number of reduced-sugar and unsweetened drinks available in the market, and, whereas nonetheless comparatively small, they’re rising quicker than the general delicate drinks market,” says Gabriella Karnadi, an analyst at market analysis agency Euromonitor Worldwide. She traces the consumption development to 2016, when public well being authorities declared a “warfare on diabetes”.
To make certain, the shift in dietary habits has been a very long time coming.
Since 2001, the Well being Promotion Board (HPB) has provided a simple rule of thumb with its More healthy Alternative Image (HCS) framework, which now caps the entire sugar of sweetened drinks at six grams for each 100g, or seven grams for carbonated merchandise.
However, whereas Noticed Swee Hock Faculty of Public Well being dean Teo Yik Ying believes the scheme has spurred producers to tweak formulation for compliance, he provides that “it’s clear there’s room for extra enhancements”.
In spite of everything, the common Singaporean guzzles a whopping 4 teaspoons of sugar a day from pre-packaged drinks, based on HPB’s final Nationwide Vitamin Survey in 2018.
Sugary drinks that don’t meet the reduce for HCS labelling and comprise a median of 5 teaspoons of sugar per serving additionally nonetheless made up half of all pre-packaged sweetened drink gross sales right here in 2018, based on business knowledge commissioned by HPB.
Gordon Eng, Asia-Pacific normal supervisor for style at ingredient and flavour provider Kerry Style and Vitamin, notes that customers in markets corresponding to Thailand, Indonesia, Malaysia and Singapore desire sugar ranges which might be 10 to 20 per cent larger than what their European counterparts can abdomen.
But, tastebud preferences could also be transferring from tooth-rotting to dull.
Euromonitor estimates that reduced-sugar merchandise now make up round 12 per cent of the Singapore delicate drink market, led by lower-sugar or artificially sweetened fizzy drinks and a progress in bottled water gross sales.
In the meantime, the general marketplace for reduced-sugar drinks, which additionally consists of sizzling drinks corresponding to instantaneous espresso, grew from S$41.7 million in 2015 to S$65.5 million final 12 months.
Manufacturers take heed
“Asia’s quickly ageing inhabitants and more and more health-conscious people will create extra demand for more healthy F&B merchandise with lowered or no sugar,” says Bernice Tay, director of meals manufacturing at enterprise company Enterprise Singapore (ESG), pointing to market alternatives in Asia and different prosperous areas.
Well being and wellness is a precedence underneath the multi-agency FoodInnovate scheme for business, whereas ESG works with specialists and commerce teams to develop merchandise and processes and replace meals producers on new traits, components and rules.
Certainly, three in 4 customers are actively avoiding higher-sugar drinks, and greater than one-third additionally reduce down on sweetened drinks altogether, Nielsen present in late 2019.
This bears out knowledge from grocery store operator FairPrice, which has seen the gross sales of more healthy drinks up by greater than 20 per cent 12 months on 12 months, within the 4 months to end-April.
Director of grocery Peter Teo tells The Enterprise Occasions that HCS-certified drinks gross sales picked up throughout each nationwide and home manufacturers, whereas gross sales of different tipples “have stagnated”.
“For instance, for espresso merchandise, we see customers switching from sweetened espresso choices to choices which might be labelled as ‘much less sugar’, ‘lowered sugar’, or ‘no sugar’,” he says.
The chain’s top-selling sugar-sweetened drinks are coffees, teas and carbonated delicate drinks.
Equally, home-grown drinks producer Yeo Hiap Seng (YHS) has informed shareholders that greater than 80 per cent of Yeo’s beverage gross sales in Singapore are from HCS merchandise – “and we have now extra within the pipeline for HCS utility”, a spokesperson says.
In relation to sugar, it’s more and more pressing for drinks firms to maintain up with each stricter guidelines and altering buyer preferences.
From end-2021, promoting past the purpose of sale will likely be banned for all pre-packaged drinks containing greater than 10g of sugar per 100g.
In asserting the tighter regime for sugary drinks this March, the Ministry of Well being (MOH) mentioned producers can have sufficient time to regulate.
“We anticipate to see reformulation and introduction of more healthy drinks over the subsequent one to 2 years earlier than the measures come into impact in end-2021,” it added on the time.
“We might urge purchasers to take the lengthy view,” says Jacob Wright, chief technique officer at BBH Singapore, when requested what recommendation the promoting agency would give to business.
“As with tobacco previously, the regulatory local weather is obvious and rules will proceed to be tightened till governments see a discount in consumption of those merchandise.
“Nonetheless, nobody is seeking to eradicate them fully and they’ll have a long-term function as occasional treats, so manufacturers have to discover a option to construct a sustainable enterprise round much less frequent consumption.”
Gamers which have saved a watch on the regulatory local weather for sugar are not any strangers to this strategy. 4-fifths of meals firms right here have been already reformulating their merchandise in 2018, based on a ballot commissioned again then by business group Meals Trade Asia (FIA).
FIA government director Matt Kovac says the impetus for product improvement is “the robust industrial incentive of assembly client demand for more healthy merchandise”.
Certainly, the “sugar footprint” of Fraser and Neave (F&N) merchandise has fallen by 40 per cent in 14 years, chairman Charoen Sirivadhanabhakdi informed shareholders within the mainboard-listed drinks maker’s newest annual report.
The corporate has outlined a three-pronged technique to construct up its inventory of more healthy merchandise: reformulating recipes for decrease sugar, providing extra bottled water, and “increasing sugar-free choices for key variants”.
These embody the debut of sugar-free F&N Orange Zero and Sarsi Zero in 2018, in addition to the limited-edition F&N Ice Cream Soda Zero final 12 months.
Jennifer See, managing director of F&N Meals Singapore, additionally factors to sports-themed branding for isotonic drink 100PLUS: “Now we have additionally launched 100PLUS Zero and continued our efforts in encouraging Singaporeans to steer energetic existence by sporting occasions and partnership with native sporting fraternities,” she tells BT.
Native producer Faesol, which provides resorts, eateries and caterers with ready-to-mix powdered drinks underneath the low-sugar iLite model, has additionally seen the writing on the wall.
Since Singaporean customers more and more demand higher-quality merchandise, meals providers gamers should keep away from low-cost, high-sugar choices, says government director Jonathan Cheah. As such, Faesol changed fruit punch, a buffet staple, with a “grapefruit pomelo (Himalayan pink salt)” drink that has 1.6g of sugar in each 100g.
With Faesol utilizing sweeteners like stevia to carry sugar ranges to four per cent or decrease, Dr Cheah provides that iLite has labored with HPB and native commerce teams since mid-2018 to introduce healthier-choice drinks to meals providers firms.
Clarence Lew, director of personal model and meals options at NTUC FairPrice, notes that the reformulation course of incurs additional prices from testing, tasting and bundle redesign.
“However we are going to guarantee our vary of house-brand merchandise proceed to be priced no less than 10 per cent cheaper than comparable manufacturers,” he says.
He provides that FairPrice will develop its house-brand vary “to remain related to our clients’ altering existence whereas supporting varied nationwide initiatives to advertise a wholesome way of life”.
Bitter on sugar?
The reformulation drive is a chance for firms like Kerry, which gives firms with a line of business options known as “TasteSense”. Mr Eng tells BT that these options, which are supposed to recreate the style and mouthfeel of sugar in reduced-sugar merchandise, are principally for purchasers in drinks manufacturing.
Even conventional sugar suppliers are ramping up sugar-free choices.
Moreover sugar, agri-food multinational Cargill’s sweetener portfolio consists of components from the stevia plant and sugar alcohols corresponding to sorbitol.
Cargill additionally consults on product reformulation, with sugar discount in drinks among the many greater than 100 tasks at an innovation centre that opened in Singapore in June final 12 months.
It really works with purchasers to develop recipes and introduce components “with minimal to no influence on texture and value”, based on Franck Monmont, Cargill’s Asia managing director for starches, sweeteners and texturisers.
“Now we have varied tasks in our pipeline on sugar reductions – from power drinks to condensed milk to an acidified dairy drink. Sadly, Covid-19 has delayed the product launches of a few of these.”
In the meantime, business stalwart John Cheng tells BT that Cheng Yew Heng – the household enterprise the place he’s a director – is already distributing sugar options corresponding to allulose and a zero-calorie sweetener made with monk fruit or luo han guo. A “more healthy sugar” line-up, which incorporates crimson and black jaggery sugar, can be slated for launch in late 2020 or early 2021.
“The subsequent step will likely be to work on our different sugars and create new merchandise,” he provides, pointing to plans for brown sugar teas, and new cupcake mixes and rock sugar sticks.
Cheng Yew Heng can be working with foods and drinks reformulation startup Hoow Meals “to search out options for our business-to-business clients”, he provides. Hoow Meals is backed by Innovate360, Cheng Yew Heng’s startup incubator and certainly one of ESG’s accredited mentor companions.
To make certain, new sweeteners don’t come low-cost. Mr Cheng says they’ll price 5 to 100 instances as a lot as plain outdated sugar for a similar quantity by weight, though he provides: “Ought to demand enhance considerably, worth will certainly come down.”
And Dr Cheah estimates that as a lot as 15 per cent of Faesol’s income is invested in analysis and improvement. Turnover was S$959,000 for the 12 months to June 30, 2018, based on the newest company information.
However, whereas substitutes price greater than the actual deal, he says “the fee is offset by the variety of instances in sweetness”, as 5kg of stevia can pack the identical punch as a tonne of sugar.
“Sugar isn’t as unhealthy because the media portrays,” Mr Cheng says, quipping that taking in too few energy might “kill pleasure” and result in “no power”.
However Prof Teo says “the influence to people and public well being with a lower in added sugar consumption has all the time been clear”, in relation to the advantages of much less weight acquire, and decreasing threat of continual ailments corresponding to diabetes and most cancers.
And the regulatory crackdown on sugar reveals no indicators of abating. The MOH plans to ultimately lengthen labelling and promoting guidelines to as-yet undefined “massive chains” that promote freshly ready drinks corresponding to bubble tea, espresso and tea, and juices – a transfer that Prof Teo helps.
“There’s a want for insurance policies to maintain up with particular person and social practices, and equally necessary for coverage makers to proceed to observe sugar consumption and the sources on the inhabitants degree,” he says.
“This may permit extra insurance policies to be designed when essential, together with that of a sugar tax which many nations have applied.”
Nielsen analysts thus advise producers to spend money on health-related advertising and marketing and “modern flavours to draw customers”, with merchandise corresponding to inexperienced tea, dairy or vitamin water “an alternative to high-sugar flavoured drinks”.
YHS, which is behind manufacturers corresponding to Yeo’s, H-TWO-O and Justea, has already gone down this highway. New product launches final 12 months included a spread of teas – corresponding to chrysanthemum and lychee pu’er, osmanthus inexperienced tea and elderberry black tea – which its annual report mentioned accommodates “no or very low degree of sugar”.
Equally, F&N’s Ms See factors to an expanded F&N Nutrisoy vary of soya bean drinks, in addition to the addition of glowing water to the Ice Mountain bottled water portfolio.
Mr Wright, from BBH, provides that native manufacturers may very well be winners within the new low-sugar local weather “and there are various robust pre-packaged tea, soya milk and low manufacturers already available in the market that would capitalise on this” right here and overseas.
“The extra regulation pushes folks away from colas and sugary delicate drinks, the extra new merchandise and advertising and marketing spend we’re prone to see on this sector. Certainly, a well-designed and marketed oolong tea model, for instance, might simply be a worldwide export success,” he says.
Mr Monmont, from Cargill, provides that purchasers are transferring past simply drinks, to “sugar discount in all types of merchandise”, together with dairy gadgets corresponding to ice cream, flavoured milk and yogurt.
FIA’s Mr Kovac additionally notes that gamers within the F&B business should maintain working intently with governments on a “collaborative, multi-stakeholder strategy” to insurance policies and rules.
However, with sugar consumption a rising concern regionally, “product reformulation will proceed to be a precedence for producers”, he provides.
Go simple on all varieties of sweeteners, say specialists
COCA-COLA Stevia, launched right here in early 2018, is among the many reformulation success tales highlighted by Meals Trade Asia on its web site.
It accommodates a mixture of sugar and stevia, taking its sugar content material to 65 per cent that of a daily Coke.
One other instance is Coca-Cola Singapore’s reduced-sugar Sprite, which makes use of a sugar-sucralose mix to carry the drink’s sugar degree right down to 45 per cent of the unique recipe.
However reformulated drinks won’t ever style the identical as the unique, Ruzaini Hashwam, a meals course of technologist at Singapore Polytechnic’s Meals Innovation and Useful resource Centre (FIRC), tells The Enterprise Occasions.
Whereas a preferred method is to interchange sugar with different components that comprise fewer or no energy, Gordon Eng, regional normal supervisor for style at Kerry Style and Vitamin, notes that decrease sugar ranges include elevated sourness and bitterness and a change in viscosity.
That’s why producers have tips to idiot the tongue: components added to recreate the acquainted flavour.
Sugar replacements fall into two teams: nutritive and non-nutritive.
Nutritive sweeteners, corresponding to sorbitol, mannitol and xylitol, comprise energy and contribute texture and mouthfeel. Zero-calorie, non-nutritive sweeteners, alternatively, are usually not metabolised by the physique, whereas contributing excessive sweetness depth. These embody aspartame, acesulfame-Okay, saccharin and sucralose.
“With extra producers producing low sugar or sugar-free drinks utilizing non-nutritive sweeteners, there will likely be higher availability of such merchandise available in the market,” says Carolyn Stephen, a nutritionist at FIRC. “Immediately’s client has extra beverage selections which will be integrated into their particular person dietary targets than a few years in the past.”
Drinks makers should additionally take sweeteners’ chemical properties into consideration, provides Mr Ruzaini. “For instance, aspartame wouldn’t be appropriate to be used in acidic drinks that will likely be thermally handled, as it is going to degrade simply underneath these situations, producing an undesirable style.”
Manufacturing line modifications and product shelf life are different components that go into reformulation, notes Geeta Bansal, from Ngee Ann Polytechnic’s Faculty of Life Sciences and Chemical Know-how. “Main consideration goes within the R&D of latest product improvement, the place a considerable quantity of assets by way of professionals and lab infrastructure is required.”
Sweeteners in meals merchandise listed below are typically protected for adults, and are regulated by the Singapore Meals Company, a trio of diet specialists from Temasek Polytechnic tells BT.
“Nonetheless, clear and correct messages should be delivered by way of protected concentrations for use by meals producers and in addition to customers,” says Dr Bansal. “For example, polyols are used as sugar replacers however above a sure dosage, these might exhibit laxative results.”
Additionally, aspartame will be harmful for folks with genetic dysfunction phenylketonuria, warn Temasek Polytechnic senior lecturer Loh Win Nie, lecturer Wong Weng Wai, and meals, diet and culinary science diploma programme supervisor Johanna Tan. That’s because the physique converts aspartame to phenylalanine, which illness victims battle to course of.
One other concern is that “sweeteners could situation our palates to demand for candy meals and drinks in our eating regimen” – the rationale that the Well being Promotion Board offers for its resolution to dam drinks with non-sugar sweeteners from eligibility for its Wholesome Meals in Colleges Programme.
“Switching from sugar-sweetened drinks to merchandise with sugar substitutes could assist scale back the consumption of the empty energy,” the Temasek Polytechnic workforce says in an e-mail.
“Nonetheless, it’s nonetheless essential to teach customers to make a wiser resolution to go for unsweetened drinks and drinks with the More healthy Alternative Image,” they add.
Equally, Ms Stephen says: “Consuming drinks with non-nutritive sweeteners needs to be completed carefully, and isn’t an entire answer for weight reduction or more healthy dwelling.”