Cargill and DSM have announced that they will form a new joint venture company called Avansya, which will produce zero-calorie, cost-effective sweeteners for food and beverage manufacturers.
Avansya will produce sweeteners such as steviol glycosides Reb M and Reb D through fermentation, and the companies claim that this represents a more scalable, sustainable and low-cost solution than if these molecules were extracted directly from the stevia leaf.
Both companies will hold a 50% stake in the Avansya joint venture, and a statement from DSM claims that the formation of the company is expected to be finalised in the first quarter of 2019.
Sweeteners produced by Avansya will be released through the EverSweet brand, and the companies say that the joint venture was formed to cater to the growing demand for non-artificial, zero-calorie and great-tasting sweeteners.
The joint venture will utilise a new fermentation facility which is currently being constructed, and is expected to be completed and operating in summer 2019.
DSM Food Specialties president Patrick Niels said: “We are delighted to announce this game-changing joint venture with Cargill.
“One of the most significant transformations in global food & beverage markets is the drive to reduce sugar in people’s diets.
“This partnership will allow us to bring sustainably produced sugar-reduction solutions based on steviol glycosides to market faster and more effectively at a scale to deliver global impact.
“Both DSM and Cargill are purpose-led companies. We want to positively impact our societies, enable our customers’ brands and businesses to be successful in their markets, and in doing so support our own further growth.”
Cargill vice-president Food Segment North America, Chris Simons said: “The demand for sugar-reduction solutions is urgent, global, and growing fast.
“While consumers are searching out foods and beverages that help meet their dietary needs or goals, whether for a diabetic diet or simply reducing calories and sugar intake, brand-owners know that great taste can’t be compromised.
“By partnering with DSM, we can further advance a commercialized Reb M & Reb D product line that offers what consumers desire.”
© FoodBev Media Ltd 2018