Dr. Alexander Triantis, the dean of the University of Maryland’s business school, released an in-depth study last week that detailed the economic strength of confectioners and other sugar-sweetened food producers.
Admittedly, there’s so much in his report that it takes a while to read cover to cover. So, we’ve extracted some of the key charts from the study, which tell a pretty compelling story by themselves.
Since the current sugar policy took hold, producers of sugar-containing products (SCP) have added jobs, whereas other food manufacturers have not.
SCP companies have also experienced better profit margins than other food manufacturers and gains in revenue that outpace the U.S. economy as a whole – regardless of what happens to sugar prices in America.
Return on equity, another key measure of economic health, also shows big SCP companies exceeding other food makers and the entire U.S. stock market. And strong stock returns, which have been much greater than the S&P 500 Index, are steady no matter what happens to the price of sugar.
In other words, Big Candy and the other SCP companies that complain about U.S. sugar policy on Capitol Hill actually have nothing to complain about. They are doing great, and that success is due, in part, to a strong domestic supply chain that supplies them with safe, dependable, and affordable sugar.