PepsiCo is one of two companies (the other one is Firmenich) with rights to use Senomyx’s Sweetmyx 617, a FEMA GRAS ingredient claimed to enable significant reductions of both high fructose corn syrup (HFCS) and beet/cane sugar (sucrose) in a variety of applications including carbonated soft drinks.
With an amendment to PepsiCo and Senomyx’s Sweet Taste Program collaboration agreement, PepsiCo's research funding for Senomyx's Natural Sweet Taste Program is extended for three additional years through September 2019.
Under the amended and restated agreement, Senomyx granted PepsiCo non-exclusive rights to natural sweeteners and natural flavor ingredients discovered, developed and selected under the collaboration for use in all non-alcoholic beverage categories.
During the extension, Senomyx will be entitled to $18 million in research and development payments over the three-year research period. PepsiCo retains the option to further extend the research collaboration for two more years, which would result in additional research funding commitments. Senomyx will also be eligible for milestone payments based on the achievement of predetermined goals as well as royalty payments upon the sale of products containing natural sweeteners or ingredients selected under the collaboration.
"We are looking forward to continuing our collaboration with PepsiCo given our common objective of developing products that meet the growing demand for lower-calorie offerings," stated John Poyhonen, President and Chief Executive Officer of Senomyx.
"PepsiCo is an industry leader, committed to reducing added sugar in their products and creating great tasting options for consumers."