LONDON, December 12 /PRNewswire/ -- PureCircle, which develops and manufactures natural food ingredients for the global food and beverage industry, is pleased to announce that it has entered into an exclusive agreement with a Korean food ingredient company, for the supply of its co-product SWETA range of high intensity sweetener ("HIS") into the Korean market. PureCircle considers the Korean market to be strategically important for SWETA as well as offering significant growth prospects given the extent to which stevia-derived HIS products are already being consumed.
SWETA is a co-product derived from the remaining molecules extracted from Stevia leaves as a result of the production of PureCircle's primary product, Rebaudioside-A ("Reb-A"). SWETA's positioning in the market is to be competitive with commoditised sweeteners whilst Reb-A is positioned at the premium end.
Pursuant to this agreement, which is for a period of two years commencing 1 January 2008, the Company's Korean partner is to purchase from PureCircle a minimum quantity of not less than 150MT in 2008 and 250MT in 2009 of product at pre-agreed prices. This will generate total revenue of not less than US$8.5m to PureCircle over the next two years.
Magomet Malsagov, Managing Director of PureCircle, commented:
"Stevia-based HIS products have been used extensively in Korea since the 1980's. The technological capability of PureCircle to convert residue into co-product that can successfully compete with commoditised sweeteners is an important competitive advantage of the Company. We believe that this exclusive agreement will augur well for the long term development of PureCircle's products whilst helping it to maintain its first mover advantage globally."
For further information please visit the company website: http://www.purecircle.com
Enquiries: PureCircle, Magomet Malsagov, Managing Director, Peter Milsted, Sales & Marketing Director, Tel: +44-207-457-2020. RFC Corporate Finance, Steve Allen, Damien Kelly, Tel: +61-8-9480-2500. College Hill: Matthew Gregorowski, Jon Davies, Terence Gibbons, Tel: +44-207-457-2020