By Brad Dorfman
CHICAGO (Reuters) - A new way to naturally sweeten packaged foods that could replace sugar or corn-based sweetener could be developed within the next few years, the chief executive of ketchup maker H.J. Heinz Co. (HNZ.N: Quote, Profile, Research, Stock Buzz) said on Tuesday.
"I'd say in the next three or four years I absolutely would expect a third way," William Johnson, Heinz chairman and chief executive, said at the Reuters Food Summit in Chicago.
The quest for a new natural sweetener comes as food companies try to cope with corn prices at 10-year highs in the wake of increased demand for the crop's use in ethanol.
Rising corn prices have in turn driven up the cost of high fructose corn syrup, while sugar is still an expensive alternative in the United States, he said.
"There's a lot of pressure on our technical people now to find us an alternative for fructose and for sugar that satisfies or more than satisfies consumers and delivers on the benefits that consumers expect while also reducing costs," Johnson said.
Such a substitute would have to be natural in origin, Johnson said. But he added he did not know which plants would be used to create the new sweetener.
Developing a new sweetener is part of a trend by food companies to grow sales and profits through innovation after most have completed major cost-cutting, including closing plants and eliminating jobs.
Other commodity prices have pressured food makers in the past, but the effect has generally been short-lived. But the increased demand for corn in ethanol has some companies planning for corn to remain at lofty levels for some time. Continued...
© Thomson Reuters 2008. All rights reserved.
| Global Environment | Oct 06 - 8, 2008 | Energy |
| Autos II | Sep 30 - Oct 01, 2008 | Hotels/Casinos |
| Restructuring | Sep 22 - 26, 2008 | Financial Services/Exchanges |
| Autos | Sep 15 - 17, 2008 | Autos |
| Russia Investment | Sep 08 - 9, 2008 | Country Summits |
