Surging Demand for Stevia Sweetens PureCircle’s Results
01 Mar 2016 --- Stevia maker PureCircle has swung into the black, reporting half-year pre-tax profits of $5.4 million, driven by dairy and other categories increasing adoption of the use of the plant-based sweetener.
Pre-tax profits of $5.4 million, compared to a $4.3 million loss last year at PureCircle, in the six months to the end of December.
Revenues were up 26 percent to $54 million at the world’s largest supplier of stevia ingredients.
Improved tastes and textures have helped stevia gain traction with consumers.
Stevia is also increasingly been used in categories such as dairy, carbonated soft drinks, teas and sauces.
PureCircle has benefited from global obesity and diabetes epidemics worsening, with more than 600 million people predicted to be obese by 2035.
The company is well placed to capitalise on the public debate and calls for regulator action to address the epidemics and concerns about added sugar.
Furthermore, consumers are also actively seeking natural sustainable sources for their sweeteners, and not use artificial low calorie products.
In November 2015, India approved the use of stevia as a food & beverage ingredient, which means that globally more than five billion consumers now have access to products using stevia.
Additionally, Brazil has just approved the use of stevia as an ingredients permitted to be mixed with sugar, opening up a potential significant market.
PureCircle has looked to keep pace with changing consumers tastes.
In July 2015, it launched two products tailored for specific tastes and later in the year launched a suite of ingredients, called Zeta MD, which boast deeper calorie reductions.
PureCircle chief executive Magomet Malsagov said: "Despite continued uncertainty in global economies and capital market, during the period all key industry trends have continued to develop in favor of stevia."
by John Reynolds
