Tate & Lyle has lost a court battle to defend its Splenda artificial sweetener from Chinese manufacturers producing cheaper, generic competitors.

Analysts say the ruling by a judge at US International Trade Commission will allow manufacturers to compete against Tate & Lyle in the market for sucralose – the sweetener’s generic name. Splenda, a sweetener with no calories, makes up almost 25% of the firm’s profits, according to analysts.
Tate & Lyle is to appeal the decision at a hearing expected to be held in January 2009.