PURE.L Regulatory News (PURE)

PURECIRCLE LIMITED

("PureCircle" or the "Company")

High Purity Stevia Market Update

PureCircle (LSE: PURE), the world's leading supplier and marketer of high purity stevia products, provides an update on the global high purity stevia market.

High Purity Market Size

·; Based on Nielsen USA consumer retail sales for the quarter to 31 March 2011 and internal PureCircle data, the Company estimates annualized USA consumer usage of 195 tonnes high purity stevia. This is an increase of 97 tonnes (101%) from the annualized consumption for the quarter to 31 March 2010.

·; In the US, the high purity industrial sales volumes translate to consumer retail consumption of an estimated $1.1bn in annualized Food and Beverage products sweetened with stevia. This compares to $459m of annualized consumer retail sales in the quarter to 31 March 2010 (an increase of 146%).

·; The higher rate of growth in retail sales value compared to volume consumption is due to the changing mix of products using high purity stevia; in particular more reduced and mid-calorie product formulations are now being consumed as opposed to just diet or zero calorie products.

·; The market is experiencing growth across all key categories. Assessing data from categories that saw launches at least one year ago, it is clear that there is strong repeat purchase and growth in usage. Examples include:

o Flavored Waters: The category has reached nearly $500m in estimated annualized sales, up +35% over the prior quarter to 31 December 2010 and up +75% over the quarter to 31 March 2010 in the prior year.

o Juices: The category has reached $220m in estimated annualized sales, up +27% over the prior quarter and +98% on quarter to 31 March 2010.

o Baked Goods: The category has grown to $100m in estimated annualized sales in the past year, up +179% over prior quarter.

o Sugar Substitutes: The US table top market annualized retail sales are now estimated to be in excess of $100m, +17% over prior quarter and +64% over the quarter to 31 March 2010.

·; In addition there is a broadening of category usage, with launches seen within the last year in the following categories: Carbonated Soft Drinks, Ready to Drink Tea, Powdered Soft Drinks, Yogurts, Fruit Flavoured Drinks, Soymilk, Baked Goods, Salad Dressings, Sports Drinks, Snacks, Energy Drinks, Smoothies, Cereal, and Dessert Mixes. PureCircle notes that launches in the important Carbonated Soft Drink (CSD) and Powdered Soft Drink (PSD) categories are still only niche.

·; According to Datamonitor, 301 food and beverage products sweetened with high purity stevia launched in the US in the 12 months to 31 March 2011, a 23% increase compared to the previous 12 months to 31 March 2010.

·; Analysis of the ingredient usage by non table top food and beverage companies indicates that PureCircle is direct or indirect supplier to approximately 90% of the products by volume and 86% by value.

·; Qualitatively, the USA usage volumes imply a global consumer usage of about 260 tonnes (130 tonnes March 2010).

·; Allowing for retailer store and distribution inventory, annual global Food and Beverage manufacturer usage is estimated at about 300 tonnes.

New Product launches

Since the start of 2011, notable new product launches by major global and regional manufacturers have occurred across North America, Latin America, Europe and Asia with high purity stevia, including:

·; USA: Lipton 100% Natural Iced Tea, Gatorade G Series Fit sports drink, Nestle Jamba All Natural Energy Drink, Lala Yogurt Smoothie, Thomas' Bagel Thins, Arnold Sandwich Thins, Arnold Artisan Ovens Flatbread, Vitamin Water line extensions, Trop50 lemonade line extensions, Wish-Bone salad dressing line extensions, Sobe Lifewater line extensions. 

·; Latin America: Equal Sweet table top (Argentina), Doce Menor 100% Stevia table top (Brazil), Iansa Cero K table top (Chile), Natuvia table top (Costa Rica).

·; France: Teisseire flavored syrup, 1883 de Philibert Routin sugar-free syrup, Routin Fruiss Stevia syrup.

·; Asia: Tenwow Group flavoured water (China), Nestle Hot Choco Delite (South Korea), Nestea flavored iced tea (Malaysia), Nescafe Coffee Latte (Malaysia).  

·; Australia: Heinz Golden Circle Light juice, Play Naturals flavoured water by P&N Beverages, Play Fruitz flavoured water by P&N Beverages. 

Our contracts and market analysis show that PureCircle is the supplier for the majority part of the new launches. Further a growing number of the launches are carrying the Stevia PureCircle trust mark including Equal Sweet table top (Argentina), Natuvia table top (Cost Rica) and Doce Menor 100% Stevia table top (Brazil).

Consumer Developments

As a result of product launch activities, consumer awareness has been growing across key markets. A recent study (May 2011) in the US market indicates the following key developments:

·; Consumer aided stevia awareness has now reached 62% across the general US population, up from 46% one year earlier (April 2010).

·; Awareness of stevia at 62% is 20 percentage points higher in the US market than Sucralose at 42% awareness, despite Sucralose having been introduced to the market in 1998.

Commenting on the stevia market update, Jason Hecker, Corporate Vice President Global Marketing for PureCircle said "The market data across all regions shows consistent strong growth in consumer awareness and demand for high purity stevia sweetened products. We believe this trend will continue and will accelerate with the forthcoming opening of the EU market."

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