Preference for Natural Sweeteners Grows

To ensure Imperial Sugar's high quality, Elton Brady collects samples of liquid sugar at the Port Wentworth refinery liquid sugar loading dock.

There’s no getting around the fact that high-fructose corn syrup is experiencing a slow downward spiral.

Sales of high-fructose corn syrup have fallen in the United States by 9 percent in 2009, compared with 2007, according to an analyst at Credit Suisse — with more of a drop expected this year. More than half of all Americans say they are concerned that high fructose may pose a health hazard. And a New York legislator has proposed banning the sale of foods containing the product in that state’s restaurants and stores.

As a result, Imperial Sugar Company has seen an uptick in its sale of liquid sugar to food-manufacturing customers, says Paul Whitaker, vice president of sales.

A centuries-old, natural ingredient, pure cane sugar appeals to manufacturers trying to strip down and simplify their products’ ingredient labels. And because it’s in an aqueous form, liquid sugar works well with the same systems and processes food manufacturers use for handling high-fructose corn system.

PPaul Whitake, vice president of sales for Imperial Sugar.

“Liquid sugar is the form that our customers like to work with, because it runs through their plant. So more and more of the largest food manufacturers in the country are converting from high fructose back to sugar,” says Whitaker.

One can see the trend playing out on the ingredient labels of yogurt, ice cream, beverages and cereals. And one can see it in Imperial’s sales reports: For the second fiscal quarter of 2010, the company saw growth of 30 percent in liquid sugar sales, compared to previous years.

All of Imperial Sugar Company’s plants currently make liquid sugar — which is essentially a simple syrup. Most production comes out of Port Wentworth, where workers produce 18 truckloads of liquid sugar a day. Gramercy produces approximately eight truckloads per day. And a liquid station in Ludlow, Ky., produces four truckloads of very low-color liquid sugar per day, primarily destined for distilleries and spirit companies.

Transporting the liquid sugar samples to the lab by bicycle is a fast way.

In addition, Imperial has struck up partnerships with several third-party liquid sugar stations to handle additional production for the company. In total, including third-party stations, Imperial produces two million pounds of liquid sugar per day.

The third-party stations bring logistical strength to the business. Whitaker explains, “Where there’s a high concentration of industrial customers, we set up liquid stations. We ship bulk sugar to those stations by rail car. Then they melt it, pasteurize it and ship it by truck to customers for us.” One rail car of bulk sugar yields five truckloads of liquid sugar.

The benefit of locating liquid stations near its large customers is that Imperial can expedite delivery.

“Liquid sugar has a short shelf life,” explains Whitaker. “Most of our industrial customers want to use it in their finished products within two days. For example, one of our stations that supplies a big Kellogg’s manufacturing plant typically delivers 15 truckloads of liquid sugar per day. We have to be on call 24/7 for them. When they’re running Frosted Flakes, they need their liquid sugar.”

It’s also cost-effective: Liquid sugar is heavier and bulkier than granulated sugar. So cutting the distance between producer and customer keeps shipping costs down.

“Liquid sugar is important to the company as more high-fructose users convert over,” says Whitaker. “Sales have been tremendous, and we see huge opportunities as more customers reformulate their products.”