Sweetening up the local market

According to AC Nielsen, the sweetener industry was worth more than R125 million last year in grocer alone. Fore Good's MD Leat Sacharowitz says the sweetener market has shown moderate growth driven by higher income groups, and the acquisition is starting to bear fruit as new revenue streams and business opportunities have already been identified.

Canderel has already diversified into other categories and entered the chocolate sector some two years ago. The company has also recently launched Crystal, the country's first 'lite' sugar that has the taste and texture of sugar - with half the calories and carbohydrates.

Sacharowitz says the local sweetener industry will see stronger growth in the medium term as income levels and consumer confidence in SA continue to rise. "As local consumers have more disposable income, they are likely to opt for premium products that promote healthier living."

"On a global scale, consumers are increasingly shifting to lower-calorie sugar-free alternatives. This is good news if South Africans follow global trends," says Sacharowitz.

According to a study by the Calorie Control Council in the US, 46% of all Americans now regularly use sugar substitutes. Thinktank Market Research.com estimates the market will continue its sustained growth of 7%.