CLEVELAND, Nov. 20, 2018 /PRNewswire/ -- Cargill and Royal DSM recently announced a new joint venture – Avansya – for the production of fermentation-derived sweeteners. Both companies have established R&D programs for the commercialization of Reb D and Reb M steviol glycosides produced using fermentation, with Cargill's product commercially available under the EverSweet brand name. This joint venture will capitalize on the extensive experience with fermentation processes, as well as their leading positions within the global food and beverages ingredient market.
According to Freedonia Group analyst Christine O'Keefe, "Consumers remain concerned with the amount of added sugar in their diets and its potential health impacts. In addition, the new Nutrition Facts label – explicitly stating the amount of added sugar in food products – is still expected to be launched in January 2020. This has prompted food and beverage manufacturers to use better for you sweeteners that taste like sugar."
However, the fermentation-based production of stevia has faced many challenges. Taste issues as well as the cost of production slowed the initial commercialization of fermentation-based steviol glycosides by Cargill by several years, with commercialization in March 2018 occurring five years after the initial patent application by Cargill and Evolva in February 2013. The current joint venture could be positioned to overcome such obstacles and bring other similar products to market in a timely manner.
For more information on the outlook for the US sweetener market, see The Freedonia Group's industry studies:
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SOURCE The Freedonia Group