Sunday, August 16, 2009

Behind the Sweetness lies a complex issue ...


























Recently, I've been asked to work on a natural diabetic friendly sugar project in addition to the bacteria/virus research. Like anything, I usually do some market research to gain a perspective on the situation. I found that bacteria, molds and sugars are highly correlated. While we share the same desires (for sugar), only people will fight and create barriers to access by trading sugar as a commodity. The natural + diabetic friendly sugar that can also release benefits of minerals is clearly a tough one (finger's crossed).

Research summary:
Goldman Sachs said this year’s rise in prices was “just the beginning” of another rally that was likely ultimately to be even more extreme than past episodes as supply problems worsened.

There was once a game, heads I win, tails you lose. This seems to apply very much in the case of sugar.

1. If we get a recovery, commodities like sugar will skyrocket.
2. If we don't get a recovery, commodities like sugar should fall due to a decrease in demand, right? -Wrong.

A. Generally speaking, people eat more sugary foods when they are nervous.
B. Economically speaking, it is one of those cheaper excursions relative to everything else (just like women will buy less make up in harder economic times, it is the opposite for lipstick).
C. Environmentally speaking, India had its driest June in 83 years. Weather conditions in Brazil and around the world have increased risks for the 2009-2010 period.


D. Medically speaking, large sugar intake cause wild swings in the insulin/glucagon response. This is one of the underlying causes for adult onset diabetes. Diabetes is projected to grow. This will impact productivity and healthcare costs.

Does this mean we are going to end up spending more on ice cream, sodas, maple syrup etc. ?

Not necessarily. As companies realize that consumers are sensitive to pricings, they will inevitably search for less expensive options. One option is the use of high fructose corn syrup as a substitute and to market it as a healthy alternative.

Another option is to use "synthetic sweeteners" that will boost the sweet taste without requiring the need to add more sugar. This has been catalyzed by the talk in Washington to tax sugar:

1. Want a Healthier State? Let's bring on the Soda Tax, Sugar Tax.


2. Sugar/Soda Tax considered to help pay for Healthcare Reform Bill


As sugar, soda and food companies feel pressured by changes ... options need to be considered to increase (or just to keep) bottom line profits. Companies running a business need to sustain profits for shareholders. Yet, every employee realizes that sugar is not healthy. US Consumers are purchasing less soda.

Therefore, the only areas of expansion is to look abroad at emerging economies and Chindia (China +India). You may recall Coca-cola's strong interest and failed acquisition of China's Huiyuan Juice Group which got slammed after Coca-cola was rejected by the Chinese government (stock).

So what are your thoughts? Do you have a sweet tooth? You're not alone. According to D.C.A.L., we found there's another organisms that LOVES sugar more than people. They are fungus, molds, mildew, bacteria ...

Once thought of as harmless, out of control growth of Candida Albicans can lead to bothersome yeast infections. Look around you at the supermarket and pharmacies and you'll notice that vaginal yeast products and options including placing a piece of crushed garlic remedies have skyrocketed (we'll save this one for another article) ...

Enjoy!

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