Food Business News - June 7, 2011 - (Page 66)

$tevia $upplier$ $eek profit$ through international growth GLG Life Tech Corp. and PureCircle, two suppliers of stevia extracts, are focusing on international growth after reporting losses in recent financial results. GLG Life Tech, Vancouver, B.C., suffered a loss of C$6.2 million ($6.4 million) in the first quarter ended March 31, which compared with a loss of C$1 million ($1 million) in the previous year’s first quarter. First-quarter sales fell 10% to C$7.4 million ($7.6 million) from C$8.2 million ($8.4 million) because of a decrease in the selling price of the company’s RA 80 stevia products and a decrease in the U.S.-Canada exchange rate. GLG Life Tech in the first quarter reported an increase in general and administration expenses of C$2.8 million mainly associated with the start-up of a joint venture in China. “The company believes that China represents the largest market opportunity for its high-grade stevia products and future growth,” GLG Life Tech said when giving first-quarter results May 16. GLG Life Tech in December entered into a joint venture agreement with China Agriculture and Healthy Foods Co. Ltd. for the sale and distribution of zero-calorie beverages and products in China that are sweetened with GLG’s stevia extract products. The joint venture is called Dr. Zhang’s All Natural and Zero Calorie Beverage and Foods Co. (ANOC). In its 2011 fiscal year outlook GLG Life Tech expects revenue of C$160 million to C$200 million and EBITDA of C$30 million to C$39 million. The company expects its stevia sweetener business to grow 53% to 70% from 2010 with a large portion expected to come from China. PureCircle suffered a loss of $7 million over the six months ended Dec. 31, 2010, which compared with net income of $1.6 million in the same time period of the previous year. Six-month revenues of $13.6 million were down from $37.5 million. The company still expects sales of $50 million to $60 million for the current fiscal year, which would compare with $60 million for the fiscal year ended June 30, 2010. “We expect a significant uplift in sales to materialize in the second half,” said Magomet Malsagov, chief executive officer, in a March 21 conference call. PureCircle expected a launch of a carbonated soft drink with PureCircle stevia extracts to occur earlier this year and still expects the launch to occur later this year. The company anticipated European Union approval of the use of stevia extracts in foods and beverages by now and still expects approval to occur this year. France already has approved the use of stevia extracts. “True sales velocity is not expected until calendar years 2012 and 2013,” Mr. Malsagov said. “So we believe that big launches like carbonated soft drinks and the E.U. approval impact will fall into the 2012 and 2013 calendar years.” FBN sweet tea and raspberry powder beverages fortified with Aquamin mineral source, NutraFlora prebiotic fiber and Purimune galactooligosaccharides. Enliten also will sweeten citrus-flavored vitamin water, a flavored chew with Nu-Mega omega-3 DHA, a fat-free yogurt with 50% reduced sugar and reduced-sugar chocolate milk. A carbonated soft drink launch that includes stevia extracts from PureCircle still may happen this year, said Jordi Ferre, corporate vice-president of sales and marketing for PureCircle. “I think the reason why we have not seen the launches we expected this January were that basically the companies were not comfortable yet with the taste of the product,” he said in a March 21 conference call. To keep a product natural, beverage manufacturers have to avoid blending stevia extracts with synthetic high-intensity sweeteners. FBN — Jeff Gelski Color Makes Life Magical Great colors make everything more enchanting. Trust your coloring needs to the proven experts at D.D. Williamson. Our wide array of natural colorings – along with our sought after caramel color – helps sell 1.5 billion servings of foods and beverages every day. Together we can create alluring products. 66 FOODBUSINESS NEWS 1-800 -227-2635 ® June 7, 2011

Table of Contents for the Digital Edition of Food Business News - June 7, 2011

Food Business News - June 7, 2011
House bill cuts food safety funding
Enhancing water’s value
Wet weather muddies corn outlook
Web Contents
Editorial - Quest for ‘whole truth’ on food prices in France
MyPlate steps up in simple fashion
Breaking down MyPlate by food groups
Lawmakers look to halt sale of Lazy Cakes
McCormick to enter joint venture in India
Cal Pacifi c acquires SunOpta frozen fruit assets
Cargill Kitchen Solutions expanding in Iowa
F.M.I. hires new v.p. of food safety programs
Sealed Air to acquire Diversey for $4.3 billion
AdvancePierre Foods buys Barber Foods
Cargill acquires German chocolate business
Calavo to buy Renaissance Food Group
U.S. Foodservice acquires Great Western Meats
Clear sailing for Hain
Seneca Foods earnings down sharply in 2011
April red meat production down 4% from year ago
Sbarro now exploring alternatives to bankruptcy plan
Sherman Miller promoted to c.o.o. at Cal-Maine Foods
Nestle Health Science to acquire pharmaceutical maker
Emerging markets propel Heinz’s fi scal 2011 earnings
U.S.D.A. lowers cooking temp for some meat cuts
Campbell Soup focusing on volume sales, brand building
Buyout fi rm to acquire California Pizza Kitchen
Sanderson Farms suffers second-quarter loss
Wet weather muddies corn outlook
House bill cuts food safety funding
House panel seeks reduction in W.I.C. funding in fiscal 2012
Seeking middle market opportunities
Clear and concise
Ingredient solutions help keep it simple
Identifying natural partners for stevia
$tevia $upplier$ $eek profi t$ through international growth
Brain health for baby boomers
Bottled water volume, market share grew in 2010
Study recommends children should avoid energy, sports drinks
V8 introduces energy beverages
Smucker, Starbucks raising coffee prices
Nestle launches Aguas Frescas bottled beverage
Jamba introduces coconut water-based beverages
Enhancing water’s value
Gluten-free grains momentum
Balance Bar adds Café line
Pasta Prima launches two ravioli lines
Land O’Frost debuts Wrap Kit
Franz introduces artisan bread
Kraft launches Newtons Fruit Thins
Farley’s & Sathers adds ‘Splashers’
Häagen-Dazs introduces 2011 flavors
Mars updates Kudos granola bar line
Lifting of Russian export ban pressures world wheat market
Ingredient Markets
Packaging formats focus on convenience
Technology enables ultrasonic sealing
Ingredient’s small size aids in salt reduction
AKFP now offers arrowroot starch, pea starch
Tate & Lyle to resume U.S. sucralose production
Non-dairy ingredients achieve pareve certifi cation
Ad Index
Food Business in the News

Food Business News - June 7, 2011