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Syrup companies facing the explosion in raw material prices

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The French syndicate of syrups (SFS) in turn alerts the public authorities to the critical situation of the industry and calls for shared solidarity with distributors.

For several months, ingredients and containers needed for syrup production follow global trend of increasing prices. Fruits, aromatic plants, sucre, steel or glass, energy : raw materials are dependent on unprecedented international price increases. They are caused by disruptions in demand and global trade resulting from the Covid crisis, and by climate change which impacts fruit and plant producing partners. These cumulative increases have repercussions on companies producing syrups which are facing difficulties that they wish to overcome with the help of all stakeholders in the sector.. After the General States of Food, two Egalim laws, and a health crisis which has strengthened collective awareness of the need to protect French food sectors, the French Syrup Union, therefore calls “everyone to play their role to put their commitments into action”. A message addressed particularly to distributors.”

+ 30 cents per can and per bottle

In a “desire to protect consumers’ purchasing power”, the Union nevertheless declares itself relatively reassuring : “if there is a price increase for the consumer, it should not exceed 30 cents per can or bottle. " However, for the FSS, Today it is vital for manufacturers to be able to pass on the share of the increase in these costs that they can no longer assume alone.. “For these SMEs, bringing together more than 850 jobs, the sustainability of industrial tools depends on it, of corporate sovereignty and the future of employees. »

COST INCREASED NEVER SEEN

Containers : + 50 %

The packaging is made of steel, d’aluminium, glass, or two PETs (recyclable plastic compound) and 100% recyclable. Despite this recyclability, all materials saw their prices soar in 2021 : the price of the steel or aluminum can, by 50% on average ; the price of the glass bottle, of 15% and that of the PET bottle, of 25% (it is expected to increase by another 50% in 2022).

Sugar : + 40 %

Sugar represents 65 to 90% of the cost of raw materials used to make a syrup. The FAO Sugar Price Index* increased by 1,4% in November 2021. Since, it jumped more than 40%. Also in question, the craze for ethanol as an alternative to oil which competes with traditional sugar buyers.

Fruit : + 134 % A “fruit” or “fruit juice” syrup must contain at least 10% fruit juice. The cost of fruit soared this summer, consequence of spring frosts throughout Europe. Added to this are supply difficulties. Blackcurrant saw its price increased by up to 134%. Organic raspberries cost 170% more than in 2020. Grenadine, fruit assembly, increased by 176%. Fishing, of 53%.

* The index following the evolution of food product prices.

A DRINK FAVORITE BY THE FRENCH

1,5 billion liters of syrup-based drinks are consumed each year in France, is more than a famous American soda ! 63% of French households consume syrups. Syrup is a specificity of French gastronomic heritage, protected from imitations by regulations. The Syndicat Français des Syrops represents 13 companies which produce and market 90% of the syrups consumed in France and achieve a cumulative turnover of 420 million euros..

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