Solving tomorrow's challenges today: How Tate & Lyle helps food manufacturers boost productivity amid volatility

By Venitia Sequeira, Head of Category Development, Bakery, Soups, Sauces and Dressings, and Cathy Hurelbrink, NOAM Procurement Director

In today’s ever-changing global food market, productivity has become a top priority for food and beverage manufacturers. Consumers, many of whom by necessity have become highly cost-sensitive and value-oriented, want stable, affordable pricing and consistent access to their staple branded products. As a result, many food manufacturers are under immense pressure to address these consumer concerns to ensure satisfaction.

Economic factors, such as tariffs, shortages, and overall price increases, have created a challenging environment for manufacturers, who need to ensure consistent product quality and consumer satisfaction. Our customers are increasingly looking to us to help counter surging costs and enhance the security of supply for some of the core ingredients they rely on. Additionally, there is a growing demand from consumers for value in their products, which is why we've identified productivity as a key focus in 2025 across all categories.

Of course, sourcing goes hand in hand with productivity, and, just like our customers, we also manage volatility with suppliers. We have a robust strategy in place for assessing supply risks. Thanks to our strong relationships with key suppliers, optimal inventory levels, and multiple supply chain options, our customers can count on us for the ingredient solutions they need when they need them.

We understand that uncertain times call for reliable and adaptable solutions. Whether it's navigating rising cocoa and sugar prices or an unpredictable egg supply, our role is to provide practical, reliable solutions that protect both product integrity and business performance. With our strategic procurement, and formulation expertise, we can help food and beverage brands rise to today’s challenges and tackle tomorrow’s problems before they become insurmountable. In today’s market, maintaining and enhancing productivity isn’t just an advantage; it’s a necessity.

Why alternatives matter now more than ever

The three ingredients we identified above—cocoa, eggs, and sugar—are foundational to products across a multitude of food categories. As such, when they become either unexpectedly expensive or difficult to source, it can put manufacturers in a bind; do they absorb the cost and decrease their profits, or pass it on to the consumer and risk reduced sales?

One possible solution is to replace some or all of the volume of a particular ingredient in a product. In many cases, it’s possible to reduce costs with substitutes and reformulations. However, it can be difficult to replace these key ingredients as they perform vital functions that differ depending on the application. This all but eliminates a one-size-fits-all solution, which is why we take a case-by-case approach to mimic the functionality of the original ingredient for mouthfeel, flavor, sweetness or whatever is needed.

Let’s look at each of these three core ingredients and how we’re able to relieve the pressure from pricing and availability concerns.

Cocoa

Shortages of cocoa due to environmental and supply chain issues have driven prices to record levels and made the raw product difficult to procure. Removing some of the cocoa in a product can help, but it results in a degree of flavor loss.

To compensate, we've utilized some of our stevia SKUs at flavor-modifying levels to enhance overall intensity, cocoa perception, and mouthfeel properties. This approach allows manufacturers to reduce the amount of cocoa used while maintaining a similar eating or drinking experience that consumers will love. Our sensory analysis roundtables have shown that our formulations compare highly favorably to the full cocoa originals. A perfect example is our Chocolate Milk with FMPs (Flavor Modification Potentiators) prototype using our NATROSE® FLAVOR 2.0 and ZOLESSE® FLAVOR stevia FMPs, both of which label as “natural flavors.”

When it comes to cocoa, our purchasing strategy is adaptable and responsive to fluctuations in prices and availability. We’re always monitoring cocoa market conditions so we can ensure a stable supply and optimize costs.

Eggs

The recent dramatic rise in the cost of eggs and drop in availability in the United States have made headlines. Eggs are vital in many products, and with the food and beverage industry feeling the pinch, our customers look to us for solutions. We’re pleased to have effective options that deliver on performance where many others on the market currently fall short.

In dressings, eggs play a crucial role in emulsification. Our STA-MIST 364NG modified corn starch has been shown to effectively replace the emulsification properties of eggs with its proven ability to hold on to fats in a formulation and bind everything together. This solution helps manufacturers maintain the desired texture and stability in their products without relying on eggs.

In the bakery sector, eggs perform multiple roles, making it challenging to find suitable replacements. We're working towards a solution that can partially replace eggs and their functional properties in baked goods. We’ve had success with some of our chickpea-based ingredients and modified corn starches, allowing us to build back the functionality without significantly impacting the existing label. Not only will this provide cost savings on the eggs replaced, but also prevent an expensive and time-consuming label change. To learn more about this application, read our blog article, Tackling Egg Replacement in Hi-Ratio Yellow Cakes.

To address the spike in egg prices, we leverage our global supply chain to find the best replacement solutions for both cost and supply. By maintaining adequate stock and identifying cost risks early, we’re able to communicate any changes to our customers in advance for more agile and effective planning.

Sugar

Like any commodity, sugar is subject to price fluctuations and supply chain disruptions. Our broad range of stevia products, for sugar reduction or total replacement, may be just the thing to help mitigate the impact of both those factors.

In fact, some stevia solutions have proven in certain cases to be more cost-effective for manufacturers compared to sugar, helping them manage costs. The array of stevia products and sources available to us can help circumvent supply chain challenges, too.

For example, we now offer an all-Americas stevia Reb M, the first large-scale commercialization of an all-Americas-sourced, manufactured, and bio converted stevia Reb M ingredient. This achievement is made possible through our partnership with Manus Bio Inc., the world’s leading bio alternatives scale-up platform. This scalability not only opens the door to potential cost savings but also enhances our customers' long-term price competitiveness. It is a hedge against possible supply disruptions, both for sugar and for this high-demand stevia, and an attractive solution in its own right for any of our customers who prefer that provenance.

For examples across all these categories, including a Classic Egg-free Mayo, a Kid's Strawberry Kiwi Hydration Drink and a Chocolate Milk with Flavor Modification Potentiators, visit our Prototype Pantry to see our solutions in action.

Future-proofing your food business with ingredient solutions

If history has shown us anything, it’s that challenges like climate change, supply chain disruptions, and market volatility are not going away. We believe that part of our role is to help our customers prepare now for what’s to come.

Looking ahead 5 to 10 years into the future, we expect continued shortages of cocoa and eggs and perhaps other premium products like olive oil or butter. We're continually developing innovative solutions that mimic the mouthfeel and flavor experience these types of ingredients provide in a variety of applications.

That’s important; consumers are very smart, and they know when you've taken something out of a product they love. We make it our goal to make our alternative ingredients function so well the new formulations are on par with the originals. We have a saying: Taste takes the throne, but Mouthfeel holds the crown. The entire eating and drinking experience, including mouthfeel and taste, must be exceptional, or consumers will reject the critical repeat purchase after the initial trial.

Additionally, today’s consumers are more label-aware than ever before. They question what they see on ingredient lists and want to know what’s going into their bodies. In many cases, our substitutions are ingredients that consumers already see on their food labels or even in their pantries. All of these factors combined help set our customers up for success through viable long-term productivity and consumer acceptance.

Data-driven insights and collaboration support effective solutions

When it comes to finished food and beverage products, we talk a lot about “feel,” especially mouthfeel. One area where we don’t go by feel is our insights.

Consumer insights and market research are critical to our solutions development process. Understanding consumer preferences and trends allows us to anticipate needs and develop solutions that meet their needs and desires. We conduct and gather extensive research to gather data on consumer behavior, preferences, and emerging trends. This information guides our solution innovation efforts, ensuring that our solutions are relevant and appealing to our target markets and stay that way. In short, we’re solving tomorrow’s problems today.

When it comes to on-trend solutions, we pride ourselves on our collaborative approach with our customers. We look at the trends of their categories and then present those pieces to them. In many cases, it helps verify feedback collected from consumers.

Hearing our unique perspectives can also help them see beyond their day-to-day observations and short-term issues and look to the future and long-term solutions. That’s because we view challenges through an ingredient-specific lens. For example, how do consumers perceive a stevia versus a sugar or a modified cornstarch versus a starch? We've done a lot of research into these areas, which allows us to supplement the information our customers already have with our unique understanding of ingredients, creating a potent combination for innovation.

Our technical services team then works closely with manufacturers to optimize their formulations. We offer hands-on support through our Customer Innovation and Collaboration Center, where we can test formulations and scaled-up production in our pilot plants. Our end-to-end service allows our ingredients to integrate seamlessly into our customers' production lines, helping them achieve their production goals with efficiency.

We’re built for change: Why partnering with Tate & Lyle makes a difference

Navigating the intersection of supply security, cost control, and consumer satisfaction requires more than ingredients. It requires insight, foresight, and partnership.

We provide all three. Our team works alongside manufacturers at every stage—from procurement planning to final product testing—to deliver ingredient solutions that keep production moving and consumers loyal.

We believe that evolution is essential to survival in the food and beverage industry. With a foundation in science, a focus on taste and mouthfeel, and a commitment to real-world performance—plus a love of great-tasting food—we can help you stay ahead of change. In today’s market, maintaining and enhancing productivity isn’t just an advantage; it’s a necessity.

Talk to us today, and let’s get started on your new or reimagined product.