Clearly, the sugar lobby is desperate to protect the sacred cow sugar program, as is evidenced by a new series of misleading advertisements. In one, they claim that the U.S. candy industry “boasts bigger profit margins than big oil,” with profits of 35% compared to the oil industry’s 6.7%. This is not only false, but the comparison is absurd.
In a “Fact Check” email sent yesterday to Congressional offices, among others, the Coalition for Sugar Reform set the record straight. The email reads in part:
- First, though the sugar lobby claims the 35% figure reflects candy companies’ profits, that is not true. The number refers to retailers’ markup on candy – an amount determined by the stores that sell candy, not the companies that manufacture it. According to Value Line, food retailers’ net profit margins are less than 2%.
- Second, food manufacturers’ and candy makers’ net profit margins are on average less than 10% – not remotely close to 35% nor high compared to all industries.
- Third, this is a misleading apples and oranges comparison. Comparing retailer markups and net profit margins of oil companies is simply absurd.
To read the full text “Fact Check,” click here.