Tate & Lyle has scaled back its outlook for 2014, listing a significant drop in prices of its sucralose sweetener and weak sales volume in developed markets as reasons for concern.
Shares in the global food ingredients giant fell as much as 15% this morning as it forecast full-year profits would mirror last year’s total of £329m – a figure below the expected £340m, based on the company’s earlier growth forecasts.
Cheaper supply from China on sucralose was impacting sales and that subsequently prices for its Splenda Sucralose sweetener would be 15% lower in the current quarter and into next year, it said.
Separately, Tate & Lyle announced a renewed partnership with McNeil Nutritionals.
The new 30-year agreement would “ensure the growth of the global market for Splenda Sucralose and its use by consumers across a broad range of applications,” said Javed Ahmed, CEO of Tate & Lyle.