22 Sep 2010 07:00
Joint Venture between Tereos and PureCircle to market high purity stevia extracts
("PureCircle or the Company")
PureCircle (LSE: PURE), the world's leading producer of high purity stevia products, is pleased to announce that Tereos and PureCircle Limited have announced the launch of Tereos PureCircle Solutions and the signing of a wider binding Co-operation Agreement between Tereos and PureCircle.
Tereos, global player in sugar, starch based products and alcohol, is the second largest producer of sugar in Europe and through Guarani, a Tereos Internacional subsidiary, is the largest exporter of high grade refined sugar from Brazil.
PureCircle is the global leader in the production and marketing of high purity stevia extracts.
Tereos PureCircle Solutions
Tereos PureCircle Solutions will develop and market a portfolio of high purity stevia extracts and innovative sweetening solutions combining sugar and stevia extracts. This will enable to address major food and beverage companies' needs in terms of launching reduced calorie products.
Tereos PureCircle Solutions in Europe is a 50:50 joint venture between Tereos and PureCircle. The Board of Directors and management team will be drawn from the two companies. The joint venture Tereos PureCircle Solutions will market the products across its core markets of France, Belgium, Czech Republic and Italy, as well as non-exclusively in a number of other European markets, including Switzerland.
Operating from Tereos offices in France, Tereos PureCircle Solutions will access Tereos' facilities, application centre and distribution infrastructure. This will be supported by PureCircle's global stevia supply chain, R&D and innovation leadership.
The Co-operation Agreement
The binding Co-operation Agreement confirms Tereos and PureCircle's commitment to develop a wider international strategic partnership, also aiming at selling high purity stevia extracts and innovative sweetening solutions to the fast growing Brazilian market. Because of Guarani's position as Brazil's premier exporter of high quality refined sugars, this partnership would access strong international markets.
The Co-operation Agreement will also enable the main Boards of Tereos and PureCircle to access wider strategic opportunities as they arise. This is likely to include development of high purity stevia extracts and glucose based sweetener combinations.
With this partnership, Tereos will be able to answer to market trends for calorie reduction with natural origin products providing its customers with both sugar and stevia extracts to elaborate sweet and tasty goods.
Philippe Duval, Chief Executive of Tereos, said:
"We see sugar's partnership with stevia as an excellent opportunity for enhancing our product portfolio and attending to customers that look for natural sweetening solutions. For entering into such a partnership, PureCircle was our natural choice."
Magomet Malsagov, CEO & President of PureCircle Limited, commented:
"Stevia's great taste and performance synergies with sugar provide excellent product innovation choices for our global food and beverage clients. In Tereos group, we have a partner who has always anticipated and led the developments in the European and Global sugar industry and shares our vision of how the combination can be developed with scale internationally"
Notes to editors:
Tereos, a global player in sugar, starch and alcohol
Tereos is a co-operative agro-industrial group specialised in the primary processing of sugar beets, sugar cane and grains. Thanks to the commitment of some 12,000 co-operative beet growers, joined with 40,000 cereal growers, all French farmers, Tereos has expanded its total production of sugar, starch and alcohol by a factor of 50 over the last 20 years.
This growth has enabled Tereos to develop in line with world consolidation in its activities, increasingly international markets and commodity price volatility. Tereos provides sustainable outlets for 1,000,000 hectares of agricultural production through 35 industrial facilities across three continents: Europe, Brazil and Africa.
Tereos has 14,000 permanent employees, men and women, who work on producing and processing sugar beet, sugar cane and grains and marketing a full range of sugar, starch, alcohol and bioethanol products, as well as by-products intended for animal feed and electrical power. Thanks to its capacity for innovation, its expertise and its mastery of the techniques and markets involved, Tereos is now a global leader in the various sectors in which it operates.
With its long-term vision for agriculture, Tereos harnesses the natural resources it transforms while reducing its environmental impact and providing its employees with a suitable working environment.
PureCircle
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 Reb A and other high purity stevia extracts 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.
PureCircle has pioneered the "Stevia by PureCircle" quality mark that educates consumers about the benefits of high purity stevia and provides a strong basis for trust for both consumers and Food and Beverage companies alike. All Tereos PureCircle solutions products will carry the "Stevia by PureCircle" quality mark.
PureCircle's global headquarters are in Kuala Lumpur, Malaysia. PureCircle shares are traded on the LSE AiM index.
Stevia
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. EU regulatory approval for high purity stevia is anticipated in spring 2011.
In France, Rebaudioside A over 97% is authorized since September 2009.
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.
Since authorization in numerous markets, stevia extracts sweetened products have rapidly grown in demand. For example, in the United States Nielsen data for the latest thirteen weeks ending 17 July 2010, show stevia extracts sweetened products comprised 14 per cent of the USA tabletop sugar substitute market. According to the Mintel GNPD database, more than 400 new products sweetened with stevia, crossing thirty-five countries have been launched so far in 2010.
For more information
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| PureCircle Limited | |
| (www.purecircle.com) | |
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| Magomet Malsagov, | +60 1 2388 8049 |
| Managing Director | |
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| William Mitchell, Finance | +44 7974 005 163 |
| Director | |
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| Westport Communications | +44 20 7065 2690 |
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| Alan Frame | alan@westportcomms.com |
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| Jeanette Bishop | jeanette@westportcomms.com |
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| RFC Corporate Finance Ltd | +61 8 9480 2500 |
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| Stephen Allen | |
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