DD Williamson
Changing times with the legislation update
Reprinted with permission from Beverage Innovation, Issue 61 supplement, page 6
November 2008 - Campbell Barnum of DD Williamson answers questions on changing manufacturer demand and legislation.
In which beverage sectors have you seen an increase in use of your colours? Juice blends or something else?
Yes, juice blend formulators are using more naturally derived colouring instead of synthetic colouring in their premium blends. Flavoured waters, iced teas, and innovative spirits are also growth categories. Diet (or light) sodas continue to gain versus regular, caloric versions. Non-synthetic colouring is formulated in some of the nutraceutical based drinks, still a growing category.
Our last issue carried a feature on Natural Ingredients and we mentioned your sweet potato colourant - have you seen substantial increase in demand for naturally derived colour products?
We have seen an increase in the number of sample requests for all anthocyanin colourings. The sales cycle usually takes several months.
How about sweet and creamy beverages - such as iced coffees? Where in beverages is your caramel colour most in demand - in colas perhaps?
Iced coffee has been popular in Japan for years and is growing in the West. Class One caramel colour adds both colour and flavour attributes to coffee-based beverages. Within sweet beverages, iced tea varieties are booming in the US. Many of these iced tea formulations contain naturally derived colouring such as caramel colour and elderberry.
What are the big issues in your sector now?
The biggest issue in our sector is a continued shift away from synthetic colours, spurred by the Southampton study in the UK and the resulting, forthcoming (2010) warning label for products containing specific synthetic colours.
Where do you see future growth in colour and beverages?
Advances in techniques to improve the stability of naturally derived colouring will drive broader beverage and food applications. In short term, the demand for children's beverages with cleaner labels will spike. Where there is required ingredient labelling for spirits, we project strong growth for non-synthetic colouring. We expect to see continued growth in probiotic drinks.
DD Williamson update
Synthetic colouring warning label in Europe
Food and beverage processors in the EU have until January 2010 to comply with new labelling requirements. Any food placed on the market before this deadline will be allowed to stay on the shelf until the sell-by-date has been reached. The synthetic colours are:
Allura Red AC (E129 = Red 40), Tartrazine (E102 = Yellow 5), Sunset Yellow FCF or Orange Yellow S (E110 = Yellow 6), Quinoline Yellow (E104), Carmoisine or Azorubine (E122), and Ponceau 4R or Cochineal Red A (E124). Contact DDW for naturally derived alternatives.
Potential legislation in the US: Senator Hillary R Clinton has introduced the Children's Environmental Health and Safety Risk Reduction Act. If passed by the US Congress, a task force would address issues including chiidren's food. We forsee that such a task force would have the potential of studying adverse effects of synthetic colours on children.
Caramel colour pricing outlook for 2009
For the US subsidiary, we have absorbed dramatic increases year over year in our raw material catalyst costs (some as much as 100%). Combined with known corn price increases and a rise in transportation and energy costs, we project a 15% to 30% increase in our liquid and powdered caramel colour prices effective January 1, 2009.
Our two European caramel manufacturing operations have seen wheat costs decrease, but we are also subject to large cost increases in raw material catalysts, energy, and transportation. The net effect is that we hope to avoid a caramel colour price increase in 2009 in Europe.
For pricing of caramel colour manufactured in Africa (Swaziland), Asia (China), and South America (Brazil), please consult with your DDW sales manager.
Retail labelling advantage of 'Plain Caramel' in Europe
Some of our customers in Europe have recently switched to Class One caramel colour for a 'cleaner' ingredient statement. Food and beverage processors can declare either 'Colour: Plain Caramel' or 'Colour E150a' on the label, but not necessarily both. For samples of Class One liquid 570 or powder 626 from Manchester, UK, please contact your DDW sales manager or e-mail: info@ddwmson.com.