Washington, DC — Rejecting sugar industry assertions that candy companies have not been harmed by skyrocketing sugar prices, the NCA reports that in recent years confectioners’ costs increased 30 to 50 percent or more, while prices for finished products only increased by roughly single digits.

U.S. Department of Commerce data shows that between 2007 and 2010, confectioners’ production costs increased 33 percent, while the value of shipments rose only four percent, resulting in a 13 percent, or $1.7 billion, contraction in the margin between revenue and costs.

The association says some candy companies have raised prices in a modest attempt to cover rising commodity costs, but the increases do not cover their diminished margins.

The current restrictive sugar policy has forced some candy manufacturers to take cost saving measures, such as moving factories outside of the U.S. to remain competitive and access world sugar prices, the NCA says.