In order to enjoy the sensation of sweetness, sugar molecules have to land on our sweet-tasting receptors, most of which sit on the tip of the tongue. But sugar is notoriously bad at actually hitting those receptors, so bad that only 20% actually makes it, the rest washing down our gullets and into the digestive system. This is one reason why many foods contain so much sugar. It’s also why a lot of food companies, in spite of their efforts, have found it difficult—even impossible—to reduce the amount of added sugar in their products while also maintaining the tastes people expect.
But a relatively new startup headquartered near Tel Aviv, Israel has developed a super-tiny method that may have cracked what has been an impossible code. In doing so, it sits on the cusp of changing the landscape of food manufacturing by making sugar so efficient that food companies can use 40% less while keeping tastes the same.
If companies can transition to using 40% less sugar that’s good for consumer health and the fight against diabetes but it’s really bad news for the sugar price over the medium term.
Sugar has trended lower in a persistent manner since late 2016 and now back testing its 2015 and 2008 lows. That is a condition it shares with a large number of commodities and therefore the sector is increasingly worth monitoring for signs that support may be found. Sugar bounced today from above 10¢ level but upside follow through on Monday will be required to pressure the progression of lower rally highs.