Gum Arabic: Why Sudan War could hit your fizzy drinks and candy

The outbreak of conflict in Sudan has caused concern among international consumer goods manufacturers, who are now scrambling to secure their supplies of gum Arabic. This ingredient, which is highly sought after, is a crucial component in various products including soft drinks, sweets, and cosmetics.

Around 70% of the global production of gum Arabic, which has limited substitutes, is sourced from Acacia trees in Sudan’s Sahel region, a country that is currently experiencing conflict between its military and a paramilitary group.

Companies like Coca Cola and Pepsico, which heavily rely on gum Arabic, have been cautious about Sudan’s persistent insecurity and have been stockpiling supplies for a long time to avoid any possible shortage. According to exporters and industry sources, some companies keep three-to-six-months worth of stockpiles. Previous conflicts in Sudan were mainly confined to remote regions like Darfur, but the current conflict, which began on April 15, has affected the capital Khartoum, bringing the economy to a halt and causing disruptions in basic communications.

Richard Finnegan, who works as a procurement manager at Kerry Group, which supplies gum Arabic to most of the major food and beverage companies, said that if the conflict in Sudan continues for an extended period of time, it could affect the availability of finished goods on store shelves. These goods are made by popular brands and may face supply chain disruptions due to a shortage of gum Arabic.

Finnegan, who works as a procurement manager at Kerry Group, a gum Arabic supplier for major food and beverage companies, estimated that the current stockpiles will last for about five to six months. This estimate is consistent with the view of Martijn Bergkamp, a partner at the Dutch gum Arabic supplier FOGA Gum, who estimated that the stockpiles will last for three to six months. Twelve exporters, suppliers, and distributors who were contacted by Reuters have reported that the trade of gum Arabic has stopped completely. Gum Arabic is used to bind food and drink ingredients together.

Kerry Group and other suppliers, such as Gum Sudan in Sweden, have reported facing communication difficulties with their contacts on the ground in Sudan. They also said that Port Sudan, the port from where the gum arabic product is shipped, has been prioritising civilian evacuations, which has further hindered the trade of gum arabic.

Dani Haddad, the marketing and development director of Agrigum, a leading global supplier, stated that “Companies like Pepsi and Coke are highly dependent on gum Arabic in their formulas, they cannot survive without it.”

According to industry sources, food and beverage companies use a powder-like, spray-dried form of gum Arabic in their manufacturing process. While manufacturers of cosmetics and printing may be able to use substitutes, there is no alternative to gum Arabic in carbonated beverages as it acts as a stabiliser and prevents the ingredients from separating.