27 Jul 2010 07:00
PureCircle Limited
("PureCircle or the Company")
ANNOUNCEMENT OF PROPOSED JOINT VENTURE WITH BRITISH SUGAR GROUP PLC
On Monday 26 July PureCircle Limited signed a MOU with British Sugar Group Plc for the formation of The Natural Sweetness Company ("TNSC"). TNSC will be a sales and marketing Joint Venture owned equally by both parties.
TNSC will work on developing and marketing a range of products that combine the natural benefits of both sugar and stevia to meet the food and beverage industries' requirements for reduced calorie natural sweet applications. The Natural Sweetness Company will operate across British Sugar's core territories of the UK, Spain, Portugal, Ireland, China and Africa.
Both British Sugar and PureCircle have established track records in developing proprietary technologies tied to natural, sweet products and both partners view this agreement as an important vehicle for growth.
Mark Carr, Chief Executive of British Sugar Group, said:
"We are delighted with our agreement with PureCircle, the global leader in providing high purity stevia products. We look forward to working together to develop a range of products that can provide an attractive proposition for customers seeking lower calorie, natural sweetening solutions. This agreement complements British Sugar's core sugar business and enhances its product portfolio and growth opportunities."
Magomet Malsagov, CEO & President of PureCircle Limited, commented:
"We know that our global customers want naturally reduced calorie sweetener options provided to them around the world to complement their existing sugar options. When we were looking for global partners British Sugar was the stand out choice across all measures in its core markets. As we work together it is clear that there is a strong alignment in how we see the sweetener market developing."
| Enquiries: |
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| PureCircle Limited (www.purecircle.com) |
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| Magomet Malsagov, CEO | +60 1 2388 8049 |
| William Mitchell, CFO | +44 7974 005 163 |
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| RFC Corporate Finance (NOMAD) | +61 8 9480 2500 |
| Steve Allen |
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| Westport Communications | +44 20 7065 2690 |
| Alan Frame | alan@westportcomms.com |
| Jeanette Bishop | jeanette@westportcomms.com |
Notes to editors:
1. Stevia is a plant from the chrysanthemum family that originates from Paraguay in South America. It has been used as a natural sweetener and flavour enhancer for many centuries. In 2008 high purity (over 95 per cent) Rebaudioside A (Reb A), a single molecule from the stevia plant, was granted U.S. Food and Drug Administration (FDA) GRAS (generally regarded as safe) status for use as a sweetener ingredient in beverage and food products. EU regulatory approval is anticipated in spring 2011. On a weight basis, high purity Rebaudioside A is up to 400 times sweeter than sugar, has no calories, has a low glycemic index and is heat and pH stable.
Since FDA authorisation, stevia sweetened products have rapidly grown in demand within the United States. For example: Nielsen data for year end 2009 show stevia sweetened products comprised 14 per cent of the USA tabletop sweetener market. According to the Mintel GNPD database, more than 150 new products sweetened with stevia have been launched so far in 2010, in 35 countries.
2. British Sugar (www.britishsugargroup.com) is one of the largest sugar producers in the world and has sugar operations in the UK, Spain, China and southern Africa. For the year ended 12 September 2009 revenue was £1.575 bn, adjusted operating profit £189m and some 4.5 million tonnes of sugar was produced.
3. PureCircle (www.purecircle.com) is the global leader in the production of high purity stevia products. It is estimated that in excess of 80% of the world's high purity Rebaudioside A has been produced by PureCircle. In addition PureCircle is leading the industry with the development of a strong sustainable natural supply chain. Stevia is now being grown for PureCircle in 15 countries across South America, Africa, and Asia, providing a sustainable cash crop for rural farming communities in each region.
As part of its leadership of the stevia industry, PureCircle has pioneered the industry trust mark "Naturally Sweetened with Stevia by PureCircle" that educates consumers about the benefits of stevia and provides a strong basis for trust for both consumers and Food and Beverage companies alike.
PureCircle's global headquarters are in Kuala Lumpur, Malaysia. PureCircle shares are traded on the LSE AiM index.