GLG signs stevia agreement for distribution to smaller manufacturers

By Caroline Scott-Thomas

- Last updated on GMT

Related tags: Stevia, Food and drug administration, Food

GLG Life Tech has partnered with e-distributor ChemPoint for the exclusive sale, distribution and marketing of its stevia extracts to non-multinational food and beverage makers in North America and Europe.

The companies aim to establish ChemPoint as an exclusive supplier to “high value tier three and tier four customers”, ​which are those that are smaller and medium-sized manufacturers, tiers being defined by anticipated annual volume demand.

The deal is for an initial three-year term with the option to renew for a further three years, subject to certain conditions.

Vice president of marketing at GLG, James Kempland, told FoodNavigator-USA.com: “The distinction with ChemPoint is they are completely electronic as a distributor and the systems are all internet based. Think Amazon for specialty chemicals and food ingredients​.

“…ChemPoint focuses on providing superior sales, technical support and distribution of specialty chemicals to these companies where larger companies cannot afford to service due to the structure of their business (i.e., rail or truck load distribution).”

GLG said that the companies immediately intend to launch joint campaigns targeting key sectors in the food and beverage industry.

The popularity of stevia as a natural zero-calorie sweetener has soared in the US since the Food and Drug Administration (FDA) first issued letters of non-objection that the extract Reb A at high purity levels was generally recognized as safe (GRAS) in December 2008. Since then, many major food and beverage manufacturers have launched stevia-sweetened products, including Coca-Cola’s Sprite Green, and PepsiCo-owned Tropicana, which released Trop50.

GLG and ChemPoint’s new distribution deal also extends to Europe, where GLG said transference of application knowledge from the United States could speed broad market acceptance of the sweetener. The European Food Safety Authority gave a positive safety opinion on high purity stevia extracts for use in foods and beverages earlier this year, with full EU-wide approval expected next year.

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