Cargill and DSM to establish a joint venture for zero-calorie sweetener options

USA – Royal DSM and Cargill have partnered to form a joint venture that seeks to develop zero-calorie, great tasting sweetener options for food and beverage producers.

This comes to address the increasing need for healthier sweeteners which are non-artificial, provide less calories without compromising on the final product taste and preferences.

The new venture, Avansya will allow the two companies produce highly sought-after, sweet-tasting molecules, such as steviol glycosides Reb M and Reb D through fermentation.

According to the companies, this gives 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.

“We are delighted to announce this game-changing joint venture with Cargill,” said DSM Food Specialties President, Patrick Niels.

“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.”

Cargill and DSM will collaboratively combine their technologies to develop steviol glycoside products made through fermentation, marketed under one brand name EverSweet™.

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.

On the other hand, Cargill brings its unrivalled 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 (USA) site.

Cargill Vice President Food Segment North America, Chris Simons said: “The demand for sugar-reduction solutions is urgent, global, and growing fast.

“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.”

The joint venture which is a 50-50 partnership, is however subject to regulatory approvals and other customary closing conditions, and to be completed in the first quarter of 2019.

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.

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