Sugar is the topic FMCG marketers can't seem to avoid at the moment - from World Health Organization and UK SACN reports. to That Sugar Film and Jamie Oliver's Sugar Rush. This short SlideShare gives a bit of context to the current debate, and building on that offers some starter-for-ten questions which brands should be exploring.

1. “Don’t mention the S word”
A fresh perspective on:
SUGAR
From The Value Engineers

2. What’s all this fuss about sugar?
2

3. Some recent headlines…
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4. A 2014-5 report from the
World Health Organization
warned that too much sugar
in our diets increases the risk
of heart disease, diabetes,
tooth decay and obesity.
The report recommends
cutting free sugars in our diet
to 10% of daily energy intake
– equivalent to 25g which is
approximately 12 tea spoons.
W.H.O. report: the tipping point for how we think about sugar?

5. The UK’s Scientific Advisory
Committee on Nutrition
(SACN) endorsed the findings
of the W.H.O. report with a
firmer recommendation for
cutting free sugars to just 5%
of daily energy intake – that’s
25g or just 6 tea spoons.
UK S.A.C.N. report recommends huge reduction in sugar intake

6. Fuelling the public’s concern
about the current headlines
on sugar, key opinion formers
have added their voice to the
debate: from Australian
documentary That Sugar Film
to celebrity chef Jamie Oliver
calling for a tax on sugar.
Sugar has become “public
enemy number one” and even
been talked about as the new
tobacco in light of the wave
of health concerns.
Key opinion formers have been quick to join the debate

7. How is this all affecting FMCG?
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8. British supermarkets have
already started taking action
to reassure consumers that
they are cutting sugar levels
in-store and adopting a
healthier choice architecture:
from de-listing drinks with
high sugar content including
Ribena, Capri-Sun and
Rubicon to introducing
sweet-free checkouts.
Supermarkets react by taking steps to cut sugar levels in-store

9. With a longstanding battle
between maintaining value
and increasing sales volumes
(often through constant
promotion), confectionary
and sweet snacking brands
have been innovating with
new flavours, taste profiles
and occasions for some time
now, and the debate on sugar
reinforces the need for bold
innovation in the category.
Confectionary and sweet snacking brands are busy innovating

10. In light of growing consumer
concerns, and a shifting
marketplace and mind-set
other categories being
affected by concerns over
sugar levels include:
• Soft Drinks (both Sodas
and Fruit Juices/Smoothies)
• “Low Fat” Products
• Breakfast Items
• “Healthy” Snacking
Other categories are being hit by concerns over sugar levels

11. Whilst a tax on sugar has
been ruled out in the UK, as
long as obesity, diabetes and
tooth decay continue to be
costly public health issues it is
likely governments will take
steps to curb sugar reduction.
As changing consumer habits
lead to a fall in volumes,
regulation is likely to include
clearer guidelines and the
labelling of “free sugars”.
Further action on labelling and regulation should be expected

12. So how can FMCG brands move forward?
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13. Starter-for-ten: questions to think about
For every decade there is a “public enemy number one” – from e-
numbers to horse meat. Is sugar the new tobacco, or a more transient
health “fad” ?
1.
Does your brand have a unique perspective on health & wellness? Both
consumers and the industry use this time widely, but what does it mean
for your brands and category?
5.
Where will the debate on sugar be in 5, 10 or 15 years time? Is your
brand portfolio future-proofed with products to deploy against new
opportunities for growth?
2.
Supermarkets are reacting with a new, more conscientious “choice
architecture” approach. What level of responsibility do modern brands
have in helping customers moderate their diets?
4.
Through the 1970s & 1980s manufacturers focussed on “low fat”
products. Are we beginning to see something similar with low-sugar,
natural sugar, or no added sugar ranges?
3.

14. Starter-for-ten: questions to think about
What segmentations of consumers and their attitudes and/or behaviours
towards sugar can provide new opportunities for growth? Is it flexible to
cope with rapid shifts in attitudes?
6.
What new taste profiles can we explore? How are consumer’s palettes
evolving and what opportunities might this present?
10.
In the battle between artificial and natural sweeteners, are there any
which pass both consumer taste tests and satisfy health beliefs?
7.
Does the future for sweet products lie in “permissible treats”, “the
ultimate indulgence” or a different positioning altogether?
9.
Is reducing portion sizes and cutting sugar levels sufficient, or do we need
totally new claims to reassure the most conscientious consumers?
8.

15. Food & Drinks brands are pumping
billions into R&D with a view to re-
formulating products whilst
continuing to maintain overall
sweeter taste profiles.
Renovate: smaller packs, re-formulation
This strategy is centred on
preserving the “bliss point” of
sweetness which keeps consumers
coming back. It is expensive and
vulnerable to shifting taste profiles.
Brands attempting to renovate their
portfolio will need to find
convincing claims and propositions
to assure often sceptical consumers
that they are truly healthier.

16. Why is sugar so closely linked to
love, reward and happiness? The
deeply ingrained cultural
perceptions and positioning of sugar
are powerful motivators.
Re-Position: the ultimate indulgence?
Exploring attitudes towards sugar
could provide interesting new
opportunities – from identifying
alternate needs to positioning sweet
products as an acceptable vice.
Re-positioning sweet products is no
small challenge, and to succeed in
this brands need to go beyond
current attitudes and anticipate
where consumers may be heading…

17. The boldest response to the debate
on sugar is to recognise it as an
opportunity not just a threat.
Opportunities abound for those
who dare to zig whilst others zag…
Innovate: exploring new taste profiles
Consumer taste profiles are shifting,
and for those who don’t believe re-
formulation has all the answers, it is
an exciting time to explore new
flavours to overtake sweetness.
Brands wishing to lead and evolve
the market need to form a vision
for their category, and have the
innovation strategy and pipeline to
blaze the trails and get there.

18. Who can help me tackle these questions?
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19. Insightful Customer Understanding
Market research can deliver interesting
snapshots of consumer’s lives, but our approach
is to put the brand and wider business
objectives at the heart of insight, combining
qualitative creativity with quantitative rigour.
About The Value Engineers
Purposeful Brand Philosophy
Today brands need to cross boundaries of
category, country and audience. We have been
helping clients tell more compelling stories using
purpose and philosophy, simplifying things as
much as possible but no more.
Inspirational Sustainable Change
Brands are either dealing with seismic changes
in their market, or looking to drive significant
change in their own business performance. We
work with clients to navigate change and
engineer the future of their brands.

20. A fascination with discovering unlikely yet intriguing
connections between ideas has lead Sean from a degree in
Philosophy to strategic brand consultancy The Value
Engineers.
Having worked with a number of retailers, start-ups and
blue chip brands on their brand strategy, innovation
pipeline and customer journey planning Sean has a number
of thoughts on framing the current debate on sugar as an
opportunity and not just a risk.
To find out more get in touch:
Sean.Davey@thevalueengineers.com
About The Author: Sean Davey

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