The company said it has signed a binding memorandum of understanding with Mexico’s largest sugar producer Group Azucarero Mexico (GAM) to provide stevia extracts to food and beverage manufacturers and other sectors there.
“We should have the details of the distribution deal finalised in one to two months,” said GLG Life Tech’s executive vice president of international affairs David Bishop, who added that the deal could also result in the distribution of its stevia extracts right across Central America.
Mexico approved the use of stevia in food and beverages in 2009 and GLG notes ‘significant interest in the sweetener’ there. The supplier also points to a number of stevia based new product launches since then including PepsiCo’s G2 brand of Gatorade which, it added, has been performing well.
GlG said that in markets such as Mexico, where sugar consumption is high and obesity on the increase, stevia offers food and beverage manufacturers the potential to develop better-for-you products for the consumer.
However, Bishop said that consumer education drives will be required to further the market development of stevia in Mexico.
He told FoodNavigator-USA.com that along with targeting the zero calorie and sweetener end of the market in Mexico, the company’s stevia extracts can be used for partial sugar replacement.
“Recent results from laboratory research have shown that GLG can successfully use stevia-derived sweeteners to replace 50 to 70 percent of caloric value in a product by combining with sugar.
“This can enable a reduced-calorie product without sacrificing the functionality of sugar in terms of mouth-feel and texture,” he added.
GLG Life Tech also recently reported the signing of a memorandum of understanding with India-based Global AgriSystem Private Limited to pursue the commercialization of its stevia sweeteners in India, and Bishop said that while the supplier is not close to any major announcement, Europe is definitely on the company's horizon, following the recent positive stevia opinion by the European Food Safety Authority.
And the company is confident in terms of its ability to maintain supply of high grade stevia to all its current and potential markets, with current production capacity, said Bishop, of 1,500 metric tonnes.