GLG Life Tech and Weider Sign Stevia Sales Agreement
According to the Agreement, GLG will own a controlling interest of 55 percent of the Venture and WGN 45 percent, with GLG holding three positions on the board and WGN two. Dr. Luke Zhang is to be Chairman of the new company.
10/09/08 GLG Life Tech Corporation has signed a definitive agreement to establish a business with Weider Global Nutrition of Salt Lake City, Utah, dedicated to the sale of dietary and tabletop supplements containing various GLG stevia products. Key product offerings of the Venture will be high quality stevia extract including Rebpure, an industrial powder with 97% pure Rebaudioside A.
The Venture is to be named GLG Weider Sweet Naturals Corp. and will combine GLG's intricate knowledge of stevia extraction and production of stevia products with the marketing, sales and distribution capabilities of WGN. According to the Agreement, GLG will own a controlling interest of 55 percent of the Venture and WGN 45 percent, with GLG holding three positions on the board and WGN two. Dr. Luke Zhang is to be Chairman of the new company.
The GLG-Weider venture will support the strategies of both companies to bring steviato mass markets around the globe. It also reflects each company's commitment to leveraging the best resources through strong partnerships and key customers who are leading players in the food and beverage industry.
Brian Palmieri, Vice Chairman and President of GLG stated, "We are delighted to be working in partnership with Weider Global Nutrition and to have the opportunity through this venture to develop the stevia market as a team. We feel there is great potential for the use of stevia in many food, beverage and dietary supplement applications. Together our goal is to provide consumers a great tasting, natural and zero-calorie alternative to artificial sweeteners and calorie-laden sugar.
Further, it is our goal to build the market with experienced and strong partners. Following the recent signing of a long-term agreement with our existing strategic alliance partner in May of this year, we expect this venture with WGN to provide another avenue to generate key revenue and profitability growth as we continue to build capacity and expand our operations."
Rick Blair, Chief Executive Officer of Weider Global Nutrition stated, "We are very confident in the venture with GLG and are excited for the opportunity to work hand in hand to build this promising new market. Already we have been able to use GLG's high-quality stevia in our product lines in Canada and the United States in large retailers such as Wal-mart and Safeway. As a strong, healthy and unique product, we expect stevia to truly impact the food and beverage industry in a large way and look forward to playing a role alongside the world's leading stevia producer."
Key executives of the management team will be jointly nominated by GLG and WGN. The following appointments have been made: Rick Blair, President and CEO and Brian Palmieri, Chief Operating Officer. The Venture will commence operations immediately.
