The European Commission is today expected to outline its sugar reform plans, as analysts predict its impact on food groups.

An EU White Paper last year suggested that sugar quotas could be cut 16% and prices slashed 33%.

However, analysts are predicting today’s reforms to reveal a 39% cut in sugar prices and a 47% cut in sugar beet.

Analyst Merrill Lynch yesterday upgraded its recommendations on Associated British Foods, saying that the reforms would not affect the group’s sugar division as much as it had first thought.

However, shares in Tate & Lyle slipped 5.25p to 478.75p as analysts feared that the group’s share could be “decimated”.

Analysts at Panmure Gordon said: “We believe reform of the EU sugar regime could decimate Tate’s European sugar and sweetener business.”

Last month Tate & Lyle warned that the regime could affect its profits.

Earlier this week analysts at Sanford Bernstein predicted that Cadbury Schweppes could save as much as £70m under the EU reforms.