Cargill and Royal DSM combine to create zero-calorie sweeteners
The Cargill global ingredients and food solutions group has confirmed a partnership with Royal DSM, an international science-based nutrition company, with a joint venture seeking to speed the development of cost-effective zero-calorie sweeteners.
Together, the businesses aim to produce sought-after, sweet-tasting molecules, such as steviol glycosides (chemical compounds from stevia) Reb M and Reb D through fermentation, giving food and beverage manufacturers an even more scalable, sustainable and low cost-in-use solution than if these same molecules were extracted from the stevia leaf. This includes businesses working within the confectionery and bakery segments of the market.
The new venture, known as Avansya, is expected to begin from next Spring, and will combine both firm’s development technologies to deliver products under a new brand name, EverSweet, which will be produced in the US, though has yet to be commercially developed for the European market.
DSM brings its leading biotechnology know-how, providing R&D expertise, including strain development and fermentation process development capabilities, as well as customer relationships in specific market segments; Cargill has application expertise and global commercial footprint in the sweetener market, as well as large-scale fermentation capacity with access to co-located, raw material suppliers at its Blair, Nebraska (USA) location. The joint venture will make use of the site’s new fermentation facility, which is expected to be completed and operating in summer 2019.
“We are delighted to announce this game-changing joint venture with Cargill,” said DSM Food Specialties President, Patrick Niels. “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.”
“The demand for sugar-reduction solutions is urgent, global, and growing fast,” said Cargill vice president food segment North America, Chris Simons. “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.”
Meanwhile, Cargill’s food ingredients and applications business has chosen six North American distribution partners – Univar Inc., Gillco Ingredients, International Food Products Corporation, Batory Foods, Pearson Sales Company and St. Charles Trading, Inc. The move optimises customer experience, streamlines the supply chain and creates a platform to generate sustainable growth through a select group of committed channel partners.
This includes Univar, which will be responsible for distribution of products in the US and Canada, including starches, specialty sweeteners, texturisers, cocoa and chocolate, and edible vegetable oils and fats.
“In today’s rapidly changing marketplace, our customers need industry-leading distributor partners who can augment our in-house expertise with broad product portfolios for one-stop convenience, regulatory support, flexible lead times and minimum order quantities,” said Pat Rogers, commercial leader in Cargill’s North America food ingredients business. “We’re confident these partners can deliver on those expectations, bringing added value to our customers.”