GLG Announces MOU Signed with Leading Sugar Producer Grupo Azucarero Mexico
GLG believes that in global markets, such as Mexico, where sugar consumption is high that the introduction of the Company’s stevia extracts may enable food and beverage manufacturers to offer better-for-you choices to the consumer.
7 Jun 2010 --- GLG Life Tech Corporation, a vertically-integrated leader in the agricultural and commercial development of high quality stevia, announces it has signed a memorandum of understanding (“MOU”) with Grupo Azucarero Mexico (“GAM”) relating to the distribution and marketing of its stevia extract products.
GAM is the largest private producer of sugar in Mexico, following only the Mexican government. The company owns and operates sugar mills and packaging plants throughout Mexico and specializes in the production, processing and distribution of sugar cane, as well as in the elaboration and sale of sugar-based derivates and products.
Similar to other countries, Mexico is fighting an obesity problem. According to national surveys, an estimated 71% of Mexican women and 66% of Mexican men are overweight. The studies also indicate that childhood obesity has sharply increased in recent years. While some attribute the increase to soft drink consumption, there are likely other factors that have contributed to the rapid rise.
In 2009, Mexico approved the use of stevia in food and beverages which has led to significant interest in the sweetener and a number of new product launches. Leading beverage giant PepsiCo already launched its G2 brand of Gatorade with stevia which has been met with enthusiasm among Mexican consumers. GLG believes that in global markets, such as Mexico, where sugar consumption is high that the introduction of the Company’s stevia extracts may enable food and beverage manufacturers to offer better-for-you choices to the consumer. Further, collaboration with market leaders such as GAM creates opportunity for natural, blended solutions that combine sugar and stevia to help reduce calories and provide healthy, great tasting products.
GLG Chairman and CEO Dr. Luke Zhang stated, "We are excited about the possibilities between GLG and GAM, including the opportunity to create new blends and offer the healthy benefits of stevia to consumers in Mexico. We look forward to building the Mexican market together, and to forming a productive long-term relationship between our two companies.”
CEO of GAM Juan Cortina Gallardo said, “At GAM we see stevia as part of the natural sweetener family. Our focus and closeness to our customers demand that we provide competitive and natural solutions to their sweetener supply. We have found in GLG the perfect partner and a true leader in the different stages of stevia production. We feel very enthusiastic about our partnership with GLG and look forward to working together in bringing value added and low calorie options to the markets we serve.”
