PureCircle Announces Five Year Investment in India Following Approval of Stevia
12 Apr 2016 --- PureCircle has announced a major investment program in India over the next five years, as it looks to capitalize on the country’s approval of stevia leaf as a sweetener.
The maker of stevia said it plans to partner with thousands of Indian farmers to plant 5,000 hectares of stevia and to build a stevia processing facility in India in the long-term.
Speaking to FoodIngredientsFirst, Magomet Malsagov, CEO of PureCircle said: "We have long terms plans in India. Over the next five years, our investments could go up to $200 million across a range of activities from farming to manufacturing and application infrastructure."
In November last year, India’s Food Safety and Standards Authority approved steviol glycosides, potentially opening up a market of one billion customers for PureCircle.
It was approved for use in the food and beverage categories including dairy and sweeteners.
The approval marked the last major economy to approve Stevia, which consumers see as an alternative to high sugar drinks which to some are associated with health concerns.
PureCircle president of group sales and marketing Jason Hecker said: “Our investment in India signals the huge potential we see in this market for stevia as a sweetener and as an agricultural commodity.”
Hecker told FoodIngredientsFirst: "The Indian market is very interesting because of its attractiveness as an agricultural sourcing country as well as its consumers long history of incorporating herbs in their food and beverages. In many ways, Stevia is a perfect fit for that reason."
“We believe this plant can not only help farmers in the region earn extra income, but also help to naturally reduce calories for Indian consumers while maintaining the sweet taste they want,” Hecker claims.
The investment forms part of PureCircle’s program of working directly with farmers.
According to PureCircle, which has around 75 percent of the Stevia market, Indian farmers that grow PureCircle stevia can expect to earn around 400,000 Rupees ($6,000) a year.
Trials working with farmers are taking place in Punjab and Tamil Nadu among other places.
Ajay Chandran, senior director for the South Asia region, PureCircle, said: “We feel confident that stevia’s approval in India will lead to new, lower calorie taste innovation for this market and help consumers significantly reduce their sweet calorie intake.”
“Stevia, also called Meethi Tulsi and Meethi Patti by Indian farmers, is the perfect ingredients for India due to its natural and herbal origins.”
“Across the globe, PureCircle’s portfolio of innovative stevia sweeteners and flavors has enabled major brands to reformulate full sugar products with this natural, zero-calorie solution to address consumer demand,” said Chandran.
by John Reynolds
