November 14, 2019

By Lynda Kiernan

Avansya, a joint venture between Cargill and Royal DSM established in Q4 2018, is launching operations with the first facility in the U.S. to produce the zero calorie sweetener Stevia using microbial fermentation. 

This 50-50 partnership was created to combine both companies’ technologies for producing steviol glycoside products (Reb M and Reb D) through fermentation, giving food and beverage manufacturers a more scalable, sustainable, and low-cost source for these highly sought-after molecules extracted from the stevia plant.

Together, DSM will bring its biotechnology expertise to the table, along with providing its background in R&D in strain development and fermentation process development, and its customer relationships in key markets. Cargill provides its application expertise and significant global commercial footprint in the sweetener market, as well as its capacity for large-scale fermentation, and access to raw material suppliers.

“One of the most significant transformations in global food & beverage markets is the drive to reduce sugar in people’s diets,” said Patrick Niels, food specialties president, DSM, in November of last year. 

“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.”

It’s Been Sweet

Driven by consumer trends shifting toward a more healthy lifestyle and diet, consumers have recently targeted sugar as an ingredient to reduce or eliminate from their food choices. This has put food and beverage companies in the position of having to reformulate their products to reflect a nutritional profile more aligned with demand.

In January 2016 the U.S. government advised that Americans should limit the amount of added sugar in their diet to less than 10 percent of their total caloric intake – marking the first recommendation of a direct limitation by the government. And by July 2018, all food companies were required to note amounts of added sugars on their labels.

Drilling down, Information Resources Inc. (IRI) found that 58 percent of consumers across generations are actively avoiding sugar, according to data generated throughout 2017. Of these consumers, 85 percent are reducing sugar for health reasons, and 58 percent are avoiding it for “weight concerns”. Meanwhile, 45 percent of consumers check packaging to determine the amount of sugar in grams in their foods and beverages, and 55 percent check their packages to determine the exact type of sweetener used in a product. 

And, as according to Univar, the sugar-free category is forecast to grow at a CAGR of 7 percent by 2021, these trends indicate a significant growth opportunity for sugar alternatives and sugar alternative technologies.

Alternative at Scale

The market for high-intensity sweeteners produced through fermentation is expected to exceed a value of $3 billion by 2025, according to Cargill, who together with DSM has begun operations at its $50 million, 10,000 square-foot  facility in Blair, Nebraska.

The sweeteners produced at the site will be used to make EverSweet, a non-artificial, zero calorie stevia sweetener, that is GRAS and FEMA GRAS approved for use in food and beverage products in the U.S. and Mexico, and is currently undergoing the regulatory process for use in other countries.

“Building this first-of-its-kind, stevia sweetener fermentation facility on the existing Cargill Blair campus reaffirms our pledge to help food and beverage manufacturers meet the sharply rising consumer demand for great-tasting, zero-calorie products to meet their dietary needs and goals,” said Mike Wagner, managing director and chairman of Cargill, while speaking at the opening of the facility. “It also reaffirms our commitment to strengthening the business community and Nebraska as a biotechnology mecca.”

EverSweet’s taste profile is well-suited for a range of products, from yogurt, soft drinks, chocolate milk, ice cream, cereals, bars, and confections, according to the partners. Currently, Avansya is providing EverSweet at scale to multiple customers, and more than 300 customer trials and product development projects are underway.

“The need for effective solutions for advanced sugar reduction on a global scale has never been clearer or more urgent,” said Niels.

“With today’s opening, we are showing that, as an industry, we can do more, and faster, to innovate and provide consumers around the world with reduced- and zero-calorie food and beverage products, with no compromise on taste, and so help support good health and well-being in our societies.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.