Tereos and PureCircle Joint Venture to Market High Purity Stevia Extracts

The joint venture is launched to address major food and beverage companies’s needs of launching reduced calorie products.

Oct 25 2010 --- Tereos and PureCircle Limited announce the launch of Tereos PureCircle Solutions and the signing of a binding Co-operation Agreement between Tereos and PureCircle. Tereos, global player in sugar, starch based products and alcohol, is the second largest sugar beet transformer in Europe and through Guarani, a Tereos Internacional subsidiary, is the largest exporter of high grade refined sugar from Brazil. PureCircle is the global leader in the production and marketing of high purity stevia extracts, a natural origin sweetener.

Tereos PureCircle Solutions will develop and market a portfolio of high purity stevia extracts and innovative sweetening solutions combining sugar and stevia extracts. This will enable to address major food and beverage companies’ needs in terms of launching reduced calorie products. Tereos PureCircle Solutions in Europe is a 50:50 joint venture between Tereos and PureCircle. The Board of Directors and management team will be drawn from the two companies. The joint venture Tereos PureCircle Solutions will market the products across its core markets of France, Belgium, Czech Republic and Italy, as well as non exclusively in a number of other European markets, including Switzerland.

Operating from Tereos offices in France, Tereos PureCircle Solutions will access Tereos’ facilities, application centre and distribution infrastructure. This will be supported by PureCircle’s global stevia supply chain, R&D and innovation leadership.

The binding Co-operation Agreement confirms Tereos and PureCircle’s commitment to develop a wider international strategic partnership, also aiming at selling high purity stevia extracts and innovative sweetening solutions to the fast growing Brazilian market. Because of Guarani’s position as Brazil’s premier exporter of high quality refined sugars, this partnership would access strong international markets.

The Co-operation agreement will also enable the main Boards of Tereos and PureCircle to access wider strategic opportunities as they arise. This is likely to include development of high purity stevia extracts and glucose based sweetener combinations. With this partnership, Tereos will be able to answer to market trends for calorie reduction with natural origin products providing its customers with both sugar and stevia extracts to elaborate sweet and tasty goods.

Philippe Duval, Chief Executive of Tereos, said: "We see sugar’s partnership with stevia as an excellent opportunity for enhancing our product portfolio and attending to customers that look for natural sweetening solutions. For entering into such a partnership, PureCircle was our natural choice.”

Magomet Malsagov, CEO & President of PureCircle Limited, commented: “Stevia’s great taste and performance synergies with sugar provide excellent product innovation choices for our global food and beverage clients. In Tereos group, we have a partner who share our vision of how the combination can be developed with scale internationally”.