Press Release |
The Sweet and Powerful
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JOHANNESBURG, SOUTH AFRICA, May 12 (MARKET WIRE) -- www.rothmanresearch.com - Ever wonder what KitKat, one of the all famous brands of chocolate of Hershey Co. (NYSE: HSY), and ethanol from Cosan Ltd. (NYSE: CZZ) have in common except for the fact that they are both some sort of fuel (one acting as a quick energy boosting snack and the other for motor fuel)? Well, that's right, they both use sugarcane as raw material. Sugarcane is cultivated in many countries with Brazil and India being the two largest producers. According to industry estimates, even if global demand for sugar is on the rise whilst supply is lingering behind, consumption growth rate is comparably still lower than the 10 year average. Lower consumption rate is due to surging market prices worldwide and the effect of the 2008-2009 Great Depression. *Direct & free downloadable research reports on Hershey Co. and Cosan Ltd. are available by signing up now at http://www.rothmanresearch.com/article/czz/23527/May-12-2010.html or http://www.rothmanresearch.com/article/hsy/23528/May-12-2010.html Rising prices of sugarcane combined with other factors have also impacted the ethanol industry where many players had to file for bankruptcy. But with continuing efforts by some governments around the globe, especially the U.S. government, to promote green energy, ethanol is considered as being one of the most viable alternatives. Following the weakening of the industry as a whole one good thing the recession produced was consolidation. One good example of this consolidation is Royal Dutch Shell which formed a partnership with one of ethanol's most efficient producers, Cosan. With a growing number of consolidations within the industry, it has become apparent that ethanol is starting to make a strong comeback. Whilst the U.S. depends on corn to produce its ethanol, Brazil has since the 1970s used sugarcane to produce its ethanol output. The main advantage of sugarcane over corn is that sugarcane produces between 570-700 gallons of ethanol per acre as compared to 330-420 gallons from corn. *www.rothmanresearch.com is a source for investors seeking free information on the confectioners and ethanol industries; investors are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register. "Since May last year, Cosan had been able to move away from its 52-week low and has set several 52-week highs in the April 2010. A revival in ethanol has not been the only driver to its run; the company is also a producer and distributor of raw, organic and refined sugar. Even with higher sugar prices worldwide, demand for sugar is still very high," commented Jack Benassi of www.rothmanresearch.com. Companies looking for additional media or advertising services can call Blue Chip IR at 1-917-267-8836. About Rothman Research Rothman Research brings independent company and sector research together, utilizing top financial advisors and investment tactics to provide you with a clear picture of investment opportunities. For More Information Contact: Jack Benassi firstname.lastname@example.org Copyright 2010, Market Wire, All rights reserved. -0-