23 Sep 2010 07:43
Joint Venture launch with Nordzucker
("PureCircle or the Company")
PureCircle (LSE: PURE), the world's leading producer of high purity stevia products, is pleased to announce the launch of a joint venture with Nordzucker, one of Europe's largest sugar companies. The joint venture will develop and market 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.
Both Nordzucker and PureCircle have established track records in developing proprietary technologies tied to natural, sweet products. This will provide the joint venture's customers with flexibility in developing innovative natural applications. The joint venture is a 50:50 collaboration between Nordzucker and PureCircle and will market its products to food and beverage clients across Central, Northern and Eastern Europe.
The joint venture will operate through the strong support of local expertise as well as service facilities from Nordzucker. It will integrate the best of Nordzucker's production and distribution infrastructure leadership with PureCircle's global stevia supply, R&D and innovation leadership. The joint venture will market products across its core markets,as well as non exclusively in a number of other European markets.
Hartwig Fuchs, Chief Executive Officer of Nordzucker, said:
"We are excited to establish this joint venture with PureCircle. PureCircle is the global leader in providing high purity stevia products and the clear partner of choice to merge first-mover developments, in particular of sugar/stevia combined products and supplying our customers with innovative naturally calorie-reduced sweetening options. The joint venture's products will be a strong complement to Nordzucker's core sugar business."
Magomet Malsagov, CEO & President of PureCircle Limited, commented:
"It is clear 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 partners in Europe, Nordzucker was an obvious choice. As we have been working together it is clear that our combined strengths and vision for the sweetener market will deliver great value to our customers."
Notes to editors:
1. The Nordzucker Group (www.nordzucker.de), with its headquarters in Braunschweig, Germany, is Europe's second biggest sugar producer. The company also produces other products from sugar beet, in particular bioethanol and animal feed. Nordzucker's 18 production and refining sites across Europe build the efficient technical, distribution and geographical foundations for further success in future. The group-wide workforce of nearly 4,000 are committed to the delivery of excellent products and services
2. PureCircle (www.purecircle.com) is the global leader in the production of high purity stevia products. It is estimated that in excess of 80 per cent of the world's Reb A and other high purity stevia 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 16 countries across South America, Africa, Asia, and the United States, providing a sustainable cash crop for rural farming communities in each region. As part of its stevia leadership, PureCircle has pioneered the industry quality mark "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. All NZPLC products will carry the Naturally Sweetened with Stevia by PureCircle quality mark. PureCircle's global headquarters are in Kuala Lumpur, Malaysia. PureCircle shares are traded on the LSE AiM index.
3. .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, 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. On a weight basis high purity Rebaudioside A is up to 300 times sweeter than sugar, has no calories, has a low glycemic index and is heat and pH stable. EU regulatory approval for high purity stevia is anticipated in spring 2011.
Since authorisation in numerous markets, high purity stevia sweetened products have rapidly grown in demand. For example, in the United States Nielsen data for the latest 13 weeks ending 17 July 2010, show high purity stevia sweetened products comprised 14 per cent of the USA tabletop sweetener market. According to the Mintel GNPD database, more than 400 new products sweetened with stevia, crossing 35 countries have been launched so far in 2010.
ENQUIRIES
PureCircle Limited
Magomet Malsagov, Group CEO +60 12388 8049
William Mitchell, Group CFO +44 7974 005163
Westport Communications
Alan Frame +44 20 7065 2690
RFC Corporate Finance Ltd
Stephen Allen +61 89480 2500