GLG signs Australian and South American stevia deals
The company said it has signed a binding memorandum of understanding with Australia’s largest sugar refiner, Sugar Australia, to provide sugar/stevia blends to the Australasian market, including Australia, New Zealand, and the Pacific Islands, as well as Singapore. And GLG has also signed a definitive agreement with Essentia Stevia for distribution of its stevia-derived sweeteners in 18 South American countries.
GLG Life Tech’s executive vice president of international affairs David Bishop told FoodNavigator-USA.com: “When stevia first hit the market we were all looking at two ends of the market: At sugar, the high-caloric end of the market, and at zero-calorie sweeteners – that was where we, and the whole industry, saw ourselves. Then we began looking at a third part of the market…There are solutions to be found with sugar and our collaboration with Sugar Australia is a part of that.”
Bishop said that instead of using stevia-derived sweeteners to replace all the sugar in a product, replacing 30 to 40 percent of caloric value, usually by combining with sugar, can allow a reduced-calorie product without sacrificing the functionality of sugar.
CEO of Sugar Australia Tim Hart said: “Sugar Australia has chosen to partner with GLG in the food and beverage sector to bring a new and exciting range of stevia ingredients as part of our range of sweetener solutions, as manufacturers seek alternatives in developing healthier products that meet consumers’ changing needs.”
As for GLG’s deal for South American distribution, Bishop said he was initially advised to play down the ‘bitter aftertaste’ that has often been associated with stevia in other countries. As stevia originates in South America, he explained, many people already have a clear idea of what it tastes like, but they may not compare it to sugar’s flavor in the same way as people from other parts of the world.
However, following the recent South American introduction to rebaudioside A, or Reb A, an extract thought to be the sweetest component of the stevia leaf, Bishop said there has been “a great deal of interest” in the sweetener.
“In South America, they now understand they can have stevia and the benefits of it with a taste profile very close to that of sugar,” he said.
Essentia Stevia will market all of GLG Life Tech’s stevia-derived sweeteners to food and beverage manufacturers in South America, as well as develop a tabletop version for retail, GLG said.
CEO of Essentia Stevia Lou Villalba said that GLG was “aggressively pursuing positioning of their products” in South America.
“GLG offers reliability in delivery and sufficient amount of supply as demand for stevia continues to increase,” Villalba said.
