DD Williamson to Increase Caramel Colour Prices in the US

Combined with known corn price increases and a rise in transportation and energy costs, the company is projecting a 15% to 30% increase in liquid and powdered caramel color prices effective January 1, 2009.

10/10/08 Caramel colour supplier DD Williamson (DDW) has said that for its U.S. subsidiary, the company has absorbed dramatic increases year-over-year in our raw material catalyst costs (some as much as 100%). Combined with known corn price increases and a rise in transportation and energy costs, the company is projecting a 15% to 30% increase in liquid and powdered caramel color prices effective January 1, 2009.
 
The company’s two European caramel manufacturing operations have seen wheat costs decrease, but are also subject to large cost increases in raw material catalysts, energy, and transportation. The net effect is that DDW is hoping to avoid a caramel colour price increase in 2009 in Europe.
 
For pricing of caramel colour manufactured in Africa (Swaziland), Asia (China), and South America (Brazil), the company is asking customers to consult with their DDW sales manager.

Meanwhile the company noted that food and beverage processors in the E.U. have until January 2010 to comply with new labelling requirements. Any food placed on the market before this deadline will be allowed to stay on the shelf until the sell-by date has been reached. The synthetic colourings are: Allura Red AC (E129 = Red 40), Tartrazine (E102 = Yellow 5), Sunset Yellow FCF or Orange Yellow S (E110 = Yellow 6), Quinoline Yellow (E104), Carmoisine or Azorubine (E122), and Ponceau 4R or Cochineal Red A (E124).
 
Senator Hilary R. Clinton has introduced the Children's Environmental Health and Safety Risk Reduction Act. If passed by the U.S. Congress, a task force would address issues including children's food. DDW foresee that such a task force would have the potential of studying adverse effects of synthetic colors on children.