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Sweetness joint venture: Cargill and DSM partner to establish Avansya

Cargill and Royal DSM have formed a new sweetness joint venture known as Avansya. Together, the companies will produce highly sought-after, sweet-tasting molecules, such as steviol glycosides Reb M and Reb D through fermentation. The move is aimed at 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.

The new venture will combine both companies’ technologies for producing steviol glycoside products made through fermentation and will market its products under one brand name, EverSweet. The move comes as food and beverage producers look to significantly reduce calories in their offerings to consumers, they are in need of non-artificial, zero-calorie, great-tasting sweetener options.

The joint venture will be a 50-50 partnership between the two companies. Financial details have not been disclosed. The establishment of the joint venture is subject to regulatory approvals and other customary closing conditions but expected to be finalized in the first calendar quarter of 2019.

"DSM and Cargill have a longstanding business relationship and we are excited to work together on this joint venture," said Patrick Niels, president of DSM Food Specialties.

“Prior to this joint venture, Cargill and DSM have both been pioneers in bringing fermented steviol glycosides Reb M and D, the sweetest molecules in the stevia leaf, to food and beverage manufacturers as a zero-calorie, great tasting sweetener solution,” Niels explains. “Cargill has EverSweet sweetener and DSM, Avansya. Under the joint venture, the two partner companies will continue to enhance the fermentation process to bring even greater improvements in scalability, sustainability and cost.”

The partnership objective is to develop and bring to market fermentation-based sweeteners that will be commercialized by the JV to selected market segments (food & beverages, pharma, dietary supplements, flavor houses). Steviol glycosides by fermentation are the first products to be developed and commercialized. “We anticipate exploring others in future,” Niels confirms.

“The establishment of the joint venture is expected to be finalized in Q1 2019, subject to regulatory approvals and other customary closing conditions,” the spokesperson explains. “Until this is completed it remains business as usual for customers, and they continue to interface with Cargill on EverSweet (Reb D and M) and with DSM on Avansya Reb M. The new venture will combine both companies’ technologies for producing steviol glycoside products made through fermentation and will market its products under one brand name, EverSweet,” Niels notes.

Sugar reduction has been a key emerging pillar for both DSM and Cargill. “DSM still has other lines of products to facilitate sugar reduction such as its Maxilact lactase enzymes and DelvoYog cultures for sugar reduction in dairy, for example, that will continue to be commercialized directly by DSM, not under the JV. Cargill will continue to offer its portfolio of other zero-calorie sweeteners it has on the market today, including Truvia stevia leaf extract, ViaTech stevia sweeteners, and Zerose Erythritol sweetener, not under the JV,” Niels explains.

The partnership leverages the two companies’ highly complementary strengths for bringing to market fermentation-derived Reb M and Reb D steviol glycosides:

  • 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 brings its unrivaled 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 (US) site.
  • The joint venture will make use of a new fermentation facility being built at the site in Blair, which is expected to be completed and operating in summer 2019.

    “We are delighted to announce this game-changing joint venture with Cargill,” Niels said in a statement. “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,” says 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.”

    At the IFT 2018 in Chicago last July, DSM introduced Avansya Reb M, an application of sweetened yogurt, in which the new sweetener allowed a 100% reduction in added sugar. Avansya Reb M, with its sugar-like sweetness, allows growers to obtain a sugar-added product while maintaining a preferred flavor profile in the application. Avansya Reb M is a non-artificial sweetener that is identical to Reb M found in the stevia plant. It is produced by fermentation, a natural and economical process that is sustainable and provides consistent and scalable supply. Luiz Leite, director of DSM's Sugar Reduction Platform, discussed ingredient innovation in a video interview.

    Also at the IFT 2018 event, Cargill introduced its EverSweet stevia extract formulation to the market. "Cargill has set a new standard of calorie-free sweetness with our EverSweet sweetener," says Andrew Ohmes, Stevia Global Business Leader for Cargill.




     

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