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Tate & Lyle's Splenda sweetener is well known and has been a success story for the company but AIM-listed company PureCircle has a rival product called Reb-A, based on a plant called Stevia rebaudiana, which has been approved as a food ingredient in the US, Switzerland, Australia, New Zealand and Russia and in France, though the French decision is subject to review. The Daily Mail reports that the European Food Safety Authority has issued an initial positive report, suggesting it regarded Stevia as safe. Full approval is expected within the next two years. PureCircle has clients taking test quantities of Reb-A for product development and it has partnered up with Merisant, the US company which makes the sweetener Canderel, and PepsiCo to produce PureVia, which is used in Pepsi's SoBe Life flavoured water drinks, a range of drinks popular in the US. With the market for Stevia opening up it is little surprise that the share price of PureCircle has climbed steadily, meaning that the shares trade on an eye-watering multiple of historic earnings. Furthermore, PureCircle has no exclusive rights to Stevia, the Mail notes, though the company is one of the most advanced at extracting the chemicals. There are still hurdles to overcome in Europe, the Mail warns, adding that "the path for companies in new product areas is never smooth." For those that are prepared to take on board the risk, however, the Mail thinks that PureCircle offers a good opportunity to profit from what could become the most successful sugar substitute yet developed.
In today's Mail on Sunday http://www.dailymail.co.uk/money/article-1266861/MIDAS.html
Hope of EU approval http://www.agrimoney.com/news/purecircle-jumps-on-hopes-for-sweetener-in-europe--1591.html
Stevia Gets EFSA Approval ! http://www.foodproductdesign.com/news/2010/04/stevia-gets-efsa-approval.aspx EFSA opinion paves way for EU approval of stevia-based sweeteners http://www.foodnavigator.com/Financial-Industry/EFSA-opinion-paves-way-for-EU-approval-of-stevia-based-sweeteners BRIEF-PureCircle says EFSA issues positive scientific opinion on stevia http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10450424 GLG looks for sweetener deals following European OK http://www.reuters.com/article/idCAN1416921620100414?rpc=44 http://telegraph.uk-wire.com/cgi-bin/articles/201004141825122126K.html?epic=PURE PureCircle, leading supplier of Stevia derived products to the Food and Beverage industry, is pleased to note that the European Food Safety Authority (EFSA) has issued a positive scientific opinion on the use of Stevia as a sweetener. "The fact that EFSA has confirmed the safety of using Stevia as a sweetener is a very important step forward towards approval for the use of Stevia in the EU" said PureCircle European VP Peter Milsted. "Our customers will be extremely encouraged by this announcement and it is a strong sign that European consumers will soon be able to choose naturally sweetened, reduced calorie products based on Stevia, just like consumers in many other parts of the world." April 14 2010
PureCircle names Euro RSCG Chicago its integrated AOR Mary Elizabeth Hurn March 31, 2010 http://www.dmnews.com/purecircle-names-euro-rscg-chicago-its-integrated-aor/article/167063/ PureCircle, a producer of natural sweeteners, has named Euro RSCG Chicago its integrated agency of record. The agency will work to raise awareness of the benefits of PureCircle's products, said Jamie King, co-president of the agency. “At the crux is really creating and building a broader consumer awareness and appreciation for stevia and the multiple benefits it provides,” King explained. Stevia plants, used to make sugar substitutes, are better known as sweetleaf. Euro's work will include consumer-facing and business-to-business initiatives. A goal is to raise food manufacturers' interest in using stevia in their food and beverages. King added that the companies are finalizing their plans, but they will use traditional, digital and direct channels. PureCircle distributed an RFP in the fourth quarter of last year. The deal was signed at the beginning of this month, King said. He declined to specify the budget. There was no previous AOR. Previously, PureCircle worked with London agency Still Waters Run Deep on a campaign basis. PureCircle also announced March 31 that it named Ketchum its PR AOR. “The teams have demonstrated a clear understanding of our target audiences and have already generated strategic ideas and marketing plans that will help us further partner with our customers, to accelerate the mainstreaming of [our] products,” Jason Hecker, group marketing director of PureCircle, said in a statement
On Friday I called the head of unit dealing with Stevia and the EU application of Purecircle: Mr. Hugues Kenigswald (if you want to call yourself, here are the data:) http://www.efsa.europa.eu/en/staffdirectory/staff/hugueskenigswald.htm "head of unit" Department "ANS" http://www.efsa.europa.eu/en/anstopics/topic/additives.htm "The Panel is also looking at steviol glycosides, sweeteners prepared from the stevia leaf. Their safety assessment is expected to be finalised in the first quarter of 2010." He did not give me any indication on the content or on the final outcome, but he confirmed that the assessment of Stevia has been completed in March and that the publication will be in April, this month !! Considering that the FDA, WHO/FAO, Switzerland, Japan etc already confirmed the safety and approved stevia sweeteners, good news which will open the doors for stevia for the entire EU should be very close !
I was just typing in that I thought it was going to fall in the short term when it plummeted. Coming back up now but I think this will be good in the long term because it's a developing company and still has to get EU approval for sale in the UK and other European countries. France and Switzerland have approved it, Australia and NZ, the Asian countries. It's just a matter of time. Good luck. Hold on for the roller coster.
Bought into PURE a few weeks ago as a medium term investment so very pleased with the recent sharp rise. Any views on whats in store for the short / medium term? GLA.
Nifty bit of research there Farenheit ... thanks.
Stevia-Based Product Successes Fuel New Launch Activity By: PR Newswire | 05 Apr 2010 | 07:00 AM ET "....According to Mintel, in 2010, 102 new products sweetened with stevia have been launched, with 37 new products launched in March alone...." http://www.cnbc.com/id/36174213
Stevia herb shakes up global sweetener market 5th April 2010 "A sweetener derived from the South American herb stevia is taking the global marketplace by storm, promising a zero-calorie product that also has the appeal of being natural. The global market for stevia sweeteners has already hit 500 million dollars following US regulatory approval and could reach 10 billion dollars in a few years, according to market research firm Mintel....." More here: http://www.independent.co.uk/life-style/health-and-families/stevia-herb-shakes-up-global-sweetener-market-1936518.html
from the Website of the European Food Safety Authority (EFSA): also here they talk about completion by end of March 2010 > decision ahead ? http://www.efsa.europa.eu/de/anstopics/topic/additives.htm you must croll down to find this: “The Panel is also looking at steviol glycosides, sweeteners prepared from the stevia leaf. Their safety assessment is expected to be finalised in the first quarter of 2010.” and here I have found the link of an EFSA draft agenda (point 7.2) which shows that Stevia Glycosides actually have discussed earlier in March 2010: http://www.efsa.europa.eu/de/events/event/ans100309-a.pdf
I have found the following links indicating that Stevia Sweeteners could be approved very soon in the EU ! http://www.europarl.europa.eu/sides/getAllAnswers.do?reference=E-2010-0614&language=EN See this link, what the new EU Health Commissionar Dalli responded on 4th March to the European Parliament regarding Stevia Glycosides: “….Since July 2007, the Directorate-General for Health and Consumers has received three new applications for the authorisation of steviol glycosides from Stevia rebaudiana as a sweetener. The European Food Safety Authority (EFSA) is currently performing a combined safety assessment of steviol glucosides, on the basis of the three applications, which will be completed by March 2010. In case of a favourable opinion by EFSA, the Commission will propose a measure for the inclusion of steviol glycosides in the Community list of sweeteners. ” My consideration & conclusion: When the Commissionar responded like this in early March 2010 that the EFSA assessment of the Stevia glycosides will be completed by end of March 2010, he was certainly briefed before by the EFSA about the status of the procedure. So it must be finalised by now! I don’t know how long the EFSA then needs to publish its assessment, but should be a matter of days of maximum 1-2 weeks, I would guess. Anyhow: Decision ante portas and the EU Commission will approve if the EFSA confirms the safety.
doh
I thought the half year results looked quite promising! But this share has done another massive dip. Profit taking maybe. Can anybody point out anything negative about the results except that we are in 'challenging' times?
buy on rumour ..Sell on News..hmm....
PureCircle (LSE: PURE), the world's leading producer of Natural High Intensity Sweeteners, including Reb A, has entered into a contract with the Cooperativa Colonias Unidas (CCU), a leading Paraguayan farmers' co-operative, for the production and supply of Stevia leaf.The agreement between PureCircle South America SA (PCSA) and CCU underlines the commitment of both parties to the production of proprietary varieties of high quality Stevia, as international demand for the natural, zero calorie sweetener escalates.Fernando Chilavert, Managing Director of PCSA said: "We are proud to partner with Colonias Unidas who bring a long commitment to agriculture in the region, a highly professional staff, and access to thousands of hectares with their associates for future expansion."
In its own statement to the Singapore Stock Exchange today, Olam stated that "it has acquired additional interests in PureCircle as it believes the investment in the Company will lead to accretion of significant shareholder value in the long term for the following reasons: Strong growth prospects of PureCircle: Since US Food and Drug Administration "Generally Recognised as Safe" clearance for high purity Reb A to be used as a food and beverage ingredient was granted in December 2008, a range of stevia-sweetened products have been launched in the US and performed well, securing strong sales. For example, stevia-sweetened "tabletop" products have secured 10% of the US table-top sweetener market. Similarly, sales of PepsiCo's SoBe Lifewater beverage flavours sweetened with Reb A, which were launched in 2009, are outperforming the category (Source: Nielsen). With continuing pressure for the reduction of calories in food and beverages, PureCircle's discussions with both current and potential clients have led to the expectation that such clients are planning launches of stevia-sweetened products and line extensions in a wider range and larger size in 2010 and 2011. Olam therefore believes that PureCircle will benefit directly from these expected product launches. Strategic value for Olam: Olam is currently exploring several initiatives for developing the stevia leaf supply chain in countries where it has an active presence and where the agro-climatic conditions are suitable for stevia cultivation. In addition, Olam believes that there is potential to distribute Reb A and stevia-based tabletop products in markets where PureCircle does not have a direct presence today.
http://www.reuters.com/article/idUSSGE5BH07P20091218 Agri Group, Olam build stake to 20% in a deal valued at 33.2 mln Sterling paying 250p per share.
Well spotted. Good news. Merry Christmas to you too.
Coke to launch Sprite with Stevia in France in the New Year. http://www.agra-net.com/portal2/home.jsp?template=newsarticle&artid=20017728733 Commentators expect PepsiCo and a leading F&B brand to follow suit with launches in the New Year. Merry Christmas!
I think this could reach £3 sooner than we think
placing will be good in the mid/long term IMO as funds will provide support necessary to go forward... in the short term is anyones guess...looking at the sells would seem that PI's expecting it to drop to around the 200p value...
Does anyone know situation with tomorrow's placing what affect it will have on the share price? If someone can explain please.