We asked our team to tell us what trends they’re watching in 2022, and some of their answers may surprise you. Find out what Director of Sales – Food, Beverage & Nutrition Bob Wills, Technical Sales Specialist Sean Overstreet, and Technical Sales Specialist Sydney Wheeler are saying about trends to watch in the industry this year.
Bob Wills: Director of Sales – Food, Beverage & Nutrition
Taking into account the food & beverage industry supply and consumer demand, Bob Wills has placed his bets on Erythritol.
“Erythritol is a natural, clean label, no-calorie sweetener used widely in food & beverage applications. Viachem is partnered with a leading global producer where we take large stock positions in the USA to guarantee availability. Amidst the supply chain chaos and tightness of supply in Dextrose, feedstock for Erythritol, our large supply position has helped us/our customers stay on schedule with production as well as support new business where shipping delays have occurred.”
Sean Overstreet: Technical Sales Specialist
Sean explains the shift in production of Triethyl Citrate, or Sucroplast TEC, and how it has affected our customers’ supply chains.
“Triethyl Citrate is derived from the combination of Ethanol and Citric Acid. During the pandemic, we’ve seen an increased need for Ethanol of varying kinds, which affected the feedstock supply in 2020 and early 2021. As we moved into 2021, the demand for Citric Acid increased significantly causing many manufacturers to reach capacity. This opened up the door for Chinese manufacturers like RZBC and COFCO to enter the U.S. and fill gaps. With both feedstocks having hurdles in the past 2-3 years, many of our customers have looked at adding second and third options to ensure their supply chains for 2022!”
Speaking of imports, Sean also wants you to know about the geographic challenges that certain oils containing Medium-Chain Triglycerides face at present.
“Hold on to your britches, Palm Oil and its downstream derivatives are seeing major price increases for a number of factors. Indonesia has recently put in a cap for the amount of crude Palm Oil allowed to leave their shore, and Malaysia has worker’s rights constraints to handle. We could see some relief with South American crop but Malaysia and Indonesia are the top exports of Palm Oil!”
Sydney Wheeler: Technical Sales Specialist
Sydney keeps it short and sweet, speaking about Sucralose.
We saw all but three manufacturers of sucralose shut down after a substantial increase in the cost of raw materials at the end of 2021. To complicate things further, the implementation of Dual Control Policy in China, Lunar New Year, and the Beijing Olympics caused further delays in production during Q1 of 2022. Ocean freight lead times are already strained; this halt in production has caused a significant shortage of material in the U.S. Luckily, Viachem planned ahead and brought in ample safety stock to meet our customers’ needs and allowed room for growth.