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GLG looks for sweetener deals following European OK http://www.reuters.com/article/idCAN1416921620100414?rpc=44 TORONTO, April 14 (Reuters) - Canadian biotech company GLG Life Tech (GLG.TO) said on Wednesday it plans to ramp up its search for partners to market its stevia natural sweetener after a European regulator ruled the product is safe for use in food. The favorable decision from the European Food Safety Agency could result in final Europe-wide approval for the stevia sweetener, which is derived from the sunflower plant, in the next six to nine months. Last year, the U.S. Food and Drug Administration said stevia is safe for use in food and beverages in the United States. China, Japan, Australia and Russia are among the countries that have already approved stevia. In Europe, Vancouver-based GLG is focusing on the French, Italian and German markets. "We are simply confident of a growing market that is going to take an important place in the world of sweeteners," said David Bishop, the company's executive vice-president of international affairs. The global sweetener market was estimated to be worth about $58.3 billion in 2009, with sugar accounting for about $52.3 billion and all other sweeteners worth about $6 billion. The current global stevia market is worth about $500 million, but GLG expects it to reach $2 billion by the end of 2011. Bishop said GLG is in talks with a number of companies in Europe to distribute and market the sweetener. Given that final approval of the substance is not expected for at least six months, he said they would take their time in striking deals. Desjardins Securities analyst Maher Yaghi said that the U.S. market for the product could prove to be much more lucrative because of the rising obesity rate and its push for healthier products. "The U.S. market is much more receptive to products using stevia than Europe," he said. "The obesity level in the U.S. is greater so people are looking to reduce their calorie content much more." Last year GLG inked a $40.5 million deal to supply high grade stevia extract to U.S. food processor Cargill [CARG.UL]. Cargill has an 8 percent share of the U.S. alternative sweetener market through its Truvia sweetener. GLG shares closed 0.5 percent higher at C$7.39 on the Toronto Stock Exchange on Wednesday after touching a high of C$7.50 earlier in the day. ($1=$1.00 Canadian) (Reporting by Scott Anderson; editing by Peter Galloway) |
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| aus der Diskussion: | GLG LIFE - Prepare for the stevia run..... |
| Autor (Datum des Eintrages): | Neutracist (18.04.10 23:58:02) |
| Beitrag: | 30 von 41 (ID:39358502) |
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