Making words in a sentence seem kinder than what they are to avoid hurting someone's feelings.
some fat kid: dude, are you gonna eat that?
some guy: yea man, boy why do you always ask for other people's food?
some fat kid: because i'm always hungry.
some guy: you are so fat man, and i'm not going to sugarcoat it neither because you'll probably eat that too.
In order to sell a travel package to a certain impoverished third world nation, the sales agent found that she had to sugarcoat the scenario by emphasizing such aspects as the resort's amenities and the region's year-round tropical climate.