The Challenge
Like many other European industries, the sugar market is highly regulated by a common organization – the EU sugar regime. High internal prices are guaranteed to sugar producers and processors for set quantities. For the last two decades, the internal market price has been maintained at approximately three times the world price, and sugar producers and farmers have been protected from competition by high import tariffs. The result is a high sugar price paid by industrial sugar users and consumers, as well as an unchanged sugar regime for over 35 years.
In response to the artificially high price of sugar, five food associations came together calling for considerable reform of the European sugar regime. They enlisted APCO to create a strategic approach to address the issue.
The Solution
APCO managed public affairs and public relations for the IZZ, a coalition comprised of the most important sugar processing companies in Germany.
APCO developed an integrated communication strategy that included:
- Positioning IZZ as a key stakeholder for the government
- Organizing meetings with key government officials
- Creating materials to support reform of the sugar regime
- Engaging in media relations
- Identifying and mobilizing reform supporters
- Coordinating lobbying efforts with European umbrella organizations and associations
- Facilitating third-party endorsement by scientists and World Trade Organization representatives
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The Result
The IZZ has attained resounding success. The coalition achieved significant communication results, attracting print coverage and substantially increasing the visibility of sugar processing companies among national and international stakeholders. The German government's position towards the sugar regime has been transformed – moving from a refusal to accept the legitimacy of the sugar users' interests to a point where, for the first time in history, the government is now in favor of a reform of the sugar regime.
The first partial success was the deletion of storage cost compensation from the government to sugar producers and farmers. The sugar processing industry across Europe now saves approximately 10 million euros annually.
Services Provided
- Coalition building
- Government relations
- Issue management
- Media relations
- Positioning
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By facilitating and leading an intensive dialogue with both administrative and political stakeholders, APCO has been instrumental in creating a climate favorable to changing a rigid market regime.
