Oils and Fats
manufacturers may need to explore different ingredients, such as hydrocolloids, or novel processing technologies which replace the need for baking or frying. “Reformulating foods always raises a host of technical considerations related to processing, sensory properties and nutritional value,”
Spinetta explains. “In today’s
environment, sustainability and cost implications also need to be scrutinised. It is possible to find effective solutions to the sunflower oil shortage, but it requires deep scientific expertise combined with an understanding of the wider food sector ecosystem.” Gary Lewis, Chief Commercial Officer at KTC says “soya is proving to be particularly popular at the moment because of its lower price point.” While the sunflower oil shortage has had a significant impact on food manufacturers across the globe, the confectionery market has been less affected as it isn’t an ingredient that is integral to, or used much in, confectionery recipes. He explains: “The main oil used by the market is palm oil – which has experienced its own issues because of the sunflower oil shortage. This has caused a knock-on effect on the price which has risen in parallel with the demand as consumers and companies look to source alternate oils.” Ingredient changes can affect the look, feel and flavour of a product. From taste through to texture, variations in the ingredients of a product can dramatically alter it. This can impact on its reputation and commercial success. However, in many applications, sunflower oil can be substituted with alternative oils such as rapeseed and soya, without having too much impact. “The only real issue is declaration as manufacturers have
a legal obligation to declare any changes to formulations,” notes Gary. “Thankfully, the Food Standards Agency has recognised the challenges associated with the current shortage and have made it easier to switch to other oils in an attempt to alleviate the crisis.”
Sunflower oil shortage ramps up palm oil prices
The biggest trend we are seeing is the emphasis on sustainability. Gary says: “There’s a huge pressure on all businesses to demonstrate what they are doing to reduce their environmental impact - and this is especially true for the oils and fats market, which has been navigating a complicated relationship with palm oil for several years. “Historically, palm oil has had a poor reputation – and this has led to many brands searching for alternatives. However, alternative oils like shea blends and coconut come with their own financial and moral issues. Shea production and coconut picking are both very labour intensive processes, and it has been associated with the exploitation of workers and animals in some of the world’s poorest countries. “These oils are also significantly more expensive, and volumes are limited. This has meant that they have been primarily reserved for luxury brands and high-end chocolate. For the rest of the market, palm oil remains a key ingredient. The good news is that when produced responsibly, it can be a sustainable choice,” he says. “Luckily, there are a lot of companies out there – including ourselves – who are making the conscious decision to only use responsibly sourced, 100% certified sustainable palm oil, accredited by the likes of the Roundtable on Sustainable Palm Oil (RSPO).” Since the sunflower oil has highlighted some important questions for the confectionery market and edible oils sector, if manufacturers are considering re-formulating, they could switch to more sustainable palm oil. It’s kinder to people and the planet, and choosing responsibly sourced ingredients is integral to any serious sustainability programme. It can also support commercial goals, as an increasing number of people look to buy from businesses with the right green credentials.
“The main oil used by the [confectionery] market is palm oil – which has experienced its own issues because of the sunflower oil shortage. This has caused a knock-on effect on the price which has risen in parallel with the demand as consumers and companies look to source alternate oils”
Gary Lewis, Chief Commercial Officer at KTC
KennedysConfection.com Kennedy’s Confection August/September 2022 13
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