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Sweeten Your Innovation in Candy Manufacturing with SR&ED Tax Credits

Discover how candy manufacturing companies can benefit from SR&ED tax incentives with Ayming Canada.

Canadian Government Funding and SR&ED Tax Credits > Insights > Expert Opinion > Sweeten Your Innovation in Candy Manufacturing with SR&ED Tax Credits
Expert Opinion
January 14, 2025

Sweeten Your Innovation in Candy Manufacturing with SR&ED Tax Credits

Candy manufacturing is a dynamic field that constantly evolves to meet consumer demands for innovative, healthier, and sustainable products. Companies face numerous challenges in areas like ingredient innovation, texture consistency, and shelf-life enhancement. These technological uncertainties provide opportunities for manufacturers to leverage the Scientific Research and Experimental Development (SR&ED) program to offset research and development costs. Here’s a look at some key areas of innovation and SR&ED opportunities in candy manufacturing.

Creating Healthier Gummies with Reduced Sugar

Consumers increasingly seek low-sugar or sugar-free alternatives. However, sugar is integral to the structure and texture of gummies, making it challenging to replicate with alternatives like stevia or erythritol.

SR&ED Opportunity: Experimenting with sugar substitutes to maintain texture and flavor stability involves developing innovative gelling processes and ingredient combinations, qualifying as SR&ED activities.

Incorporating Natural Colors and Flavors

Natural ingredients are appealing but can be unpredictable during manufacturing, leading to inconsistent flavors or colors over time.

SR&ED Opportunity: Extensive testing to stabilize natural fruit extracts or vegetable-based colorants during production can address uncertainties in temperature sensitivity and light exposure effects, making this research eligible for SR&ED claims.

Improving Texture in Marshmallows

Achieving the perfect balance of softness, elasticity, and shelf stability in marshmallows like Dare Mallow is complex, especially when exploring heat-resistant or vegan formulations.

SR&ED Opportunity: Researching alternative gelling agents and optimizing aeration processes to maintain desirable textures under varying conditions may qualify as SR&ED.

Developing Vegan and Gelatin-Free Gummies

Gelatin is a critical component in traditional gummies, and replicating its chewiness with plant-based alternatives poses significant challenges.

SR&ED Opportunity: Experimenting with pectin, agar, or carrageenan in vegan gummies involves addressing uncertainties in gelling strength and processing methods, making this a strong candidate for SR&ED tax credits.

Enhancing Shelf Life Naturally

Preserving candies without artificial preservatives requires balancing moisture content and texture over time.

SR&ED Opportunity: Innovations in natural preservatives or packaging technologies, such as modified atmosphere packaging, to extend shelf life while maintaining quality are eligible for SR&ED claims.

Achieving Consistent Texture in Mints

Mints require precise crystallization processes for optimal texture. When introducing sugar alcohols like xylitol, maintaining consistency can be unpredictable.

SR&ED Opportunity: Experimenting with cooling rates and ingredient ratios to achieve uniform mint texture and quality involves systematic research and development, aligning with SR&ED criteria.

Reducing Food Waste in Production

Minimizing waste during flavor transitions or batch changes is a challenge in candy manufacturing.

SR&ED Opportunity: Developing new cleaning protocols or modifying equipment to reduce cross-contamination and waste during production supports sustainability while qualifying as an SR&ED activity.

Enhancing Heat Resistance in Candies

Shipping and storing candies in warm climates often lead to melting or softening, affecting product quality.

SR&ED Opportunity: Experimenting with stabilizers or coating formulations to improve heat resistance involves significant research into maintaining the product’s flavor and texture.

Partner with Ayming Canada for SR&ED Success

Navigating the complexities of SR&ED claims can be daunting. Ayming Canada specializes in helping candy manufacturers identify eligible R&D activities, document their efforts, and maximize tax credit claims. Our expertise ensures that your innovative projects receive the support they deserve.

If your candy manufacturing business is tackling technological uncertainties, reach out to Ayming Canada. Together, we can sweeten your innovation journey with the benefits of SR&ED tax credits!

Contact us today!

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