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ISOGLUCOSE Isoglucose has individual and molecules that form the preparation. () on the other hand consists of a glucose and Introduction. Isoglucose is an alternative sweetener made from fructose bond chemically joined together (Fig. 2). (principally from maize). Its use in the USA (where it is known as High Fructose (HFCS)) expanded rapidly in the early 1980s, where its principle use was as a cheaper sweetener to sugar in soft . This article provides an introduction to how isoglucose is made and the extent of its current use in the EU. It then considers how we can expect the isoglucose market to develop once the current quota is removed in 2017.

The first step in the production of isoglucose (also commonly known as High Fructose Corn Syrup; HFCS) is the breaking down of starch chains by the addition of an enzyme to produce corn or . This isn’t as sweet as typical sugar and some of the glucose is converted, using an Fig. 2. Differences between isoglucose and sugar (sucrose). enzyme into fructose. The resultant glucose-fructose mix is isoglucose or HFCS (Fig.1). The advantages and disadvantages of isoglucose are shown in the table Starch chain (Fig. 3). Isoglucose is a very versatile ingredient and has proven particularly popular in the US where it is predominantly used as a sweetener in soft drinks. Disadvantages relate to taste differences resulting from isoglucose and concerns over health (i.e. weight gain and obesity). enzyme converts starch into ADVANTAGES DISADVANTAGES corn syrup (nearly 100% glucose) Stable when used in acidic It is a liquid - storage and transport Corn (glucose) (carbonated soft drinks) difficulties syrup Upto 25% water - effectively (nearly 100% Corn syrup isn't as sweet as Doesn't crystallize in sugar (sucrose) so some glucose transporting water glucose) is converted to fructose + enzyme converts glucose into fructose + glucose mixture Imroves texture (e.g. chewy This is High Doesn't add structure to food Fructose Corn bars) Syrup (HFCS) or Taste differences (e.g. drinks in the Glucose Fructose ISOGLUCOSE Maintains constant moisture Contains about 24% USA) water Helps food brown better when ? Health concerns cooked Fig 1. Chemistry of isoglucose Fig. 3. Advantages and disadvantages of isoglucose.

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Isoglucose is a broad term to describe several common mixes of fructose and glucose. The higher the fructose content, the sweeter the resultant mix. The most widely used is known as HFS 55 (55% fructose; 42% glucose; 3% other ) and is principally used in soft drinks. It has similar characteristics to honey (and has been illegally used to ‘stretch’ or pass off as honey). A lower fructose preparation (HFS 42) is used in isotonic drinks (see Fig. 4). Isoglucose mix table

Name Fructose (%) Glucose (%) Other sugars Principle uses

HFS 55 55% 42% 3% Carbonated soft drinks

Isotonic and flavoured HFS 42 42% 53% 5% (non carbonated) drinks Fig. 5. Per capita consumption of sweeteners in the US since 1970. Bakery preparations (and to HFS 90 90% 9% 1% blend into HFS 55) Isoglucose consumption rose rapidly in the 1980s as a result from its

Fig. 4. Principal types of isoglucose. ubiquitous use in soft drinks, although since a peak in 2000 consumption, as with all major sweeteners has begun to fall. This probably relates to Currently the majority of world isoglucose production is in the United consumers switching to diet-type soft drinks. States where it is cheaper to produce than sugar. Production quotas and import tariffs have kept internal prices high whereas maize prices (the ISOGLUCOSE: THE EU source of isoglucose) are low due to internal subsidies. Currently the EU places a production quota on isoglucose (0.67m Isoglucose is used in 93% of soft drinks in the US. The major cola p.a.), which roughly equates to around 5% of the EU sugar quota of 13.3m manufacturers began using isoglucose in the late 1970s, with full tonnes. It is used in about 14% of soft drinks. Production is from existing switchover complete by 1985. Sixteen percent of bakery items contain starch factories that have not been constructed solely to produce the isoglucose and in dairy products a quarter of those sweetened contain the sweetener. Only 10% of starch becomes isoglucose, with production sweetener. predominantly from the centre and south east of Europe (, and Slovakia; Fig. 6). Belgium is another centre of manufacture. The mix of sweeteners used in the US is shown in Fig. 5.

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ISOGLUCOSE COST CARD 1t Isoglucose MAIZE PRICE EUR / t ISOGLUCOSE QUOTA PRODUCTION EU Maize price (EUR / ) € 90.00 € 120.00 € 150.00 € 180.00

Raw material cost (net of by-product income) € 78.02 € 109.56 € 141.10 € 172.64

Production cost € 260.00 € 260.00 € 260.00 € 260.00

Tonnes p.a. (k) Total production cost € 354.92 € 388.04 € 421.16 € 454.27

> 200 Price (incl 8% mark-up) € 383.31 € 419.08 € 454.85 € 490.61

> 100 Current EU sugar price € 453.00 € 453.00 € 453.00 € 453.00

50 - 100 1.66 tonnes of maize makes 1 tonne of isoglucose Fig. 7. Isoglucose costs of manufacture and comparison with sugar. 0 - 50

Top producers In summary, the following points summarise the key issues in regard to isoglucose in a post quota environment: Hungary - (225k t) Belgium - Tereos (120k t) - The current low EU sugar prices results in isoglucose being equal or Bulgaria + Slovakia - Tate & Lyle (150k t) more expensive to produce - The large amounts of capital needed to increase isoglucose Fig. 6 European isoglucose production. production are constrained in an environment of low sugar prices (better return from other investments) The opportunity for growth in isoglucose production is dependent on three - Production is currently away from areas of potential demand (cost principle factors:- (i). the price of maize as a raw material; (ii). the EU sugar of transport) price and (iii). The availability and cost of investment capital of building - Potential expansion of the EU beet provides excess capacity more isoglucose factories. (and low prices) - A reduction in maize prices would alter this position (maize price is The table below (Fig. 7) shows how attractive isoglucose as an alternative rising) sweetener becomes given changes in the maize price. At a maize price of - With so much cheap sugar around, demand is likely to be modest €150 / t cost of production is approximately the same to the current sugar price (Jan 2015). However, this ignores the significant investment required In conclusion, the expected continuation of low world and EU sugar prices to produce more isoglucose which is likely to be significant. is likely to halt any significant increase in isoglucose production. A growth of 1m tonnes p.a. to around 1.75m tonnes p.a. is expected.

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