CPO to offer New High-Intensity, Low-Calorie Sweetener
Company to Build New Production Facility in Brazil, Seek Additional Regulatory Approvals in US and Europe
WESTCHESTER, Ill., Apr 22, 2008 -- Moving to broaden its global sweeteners platform for the food and beverage industries, Corn Products International, Inc. (NYSE:CPO) today announced the addition of a high-intensity, low-calorie sweetener derived from the stevia plant to its growing specialty ingredients portfolio.
Corn Products has entered into a long-term agreement with Morita Kagaku Kogyo Company Ltd. of Osaka, Japan, for the exclusive license of its patented stevia strain, manufacturing technology and stevia production, along with global marketing and distribution rights.
The ingredient, to be marketed under the brand name Enliten(TM), is a naturally occurring, low-calorie sweetener. Enliten(TM) has a very high content of Rebaudioside A, the stevia component with the best taste profile, and a sweetening power ranging from 300 to 400 times that of sugar. Enliten(TM) is designed to provide a clean, sweet taste in a variety of foods and beverages, unlike the bitter licorice taste commonly associated with some other forms of stevia.
"Consumers worldwide are looking for a new, low-calorie sweetener solution that tastes good," said Sam Scott, chairman, president and chief executive officer of Corn Products International. "Based upon customer and consumer responses to date, we believe Enliten(TM) meets this profile very well."
Corn Products intends to achieve supply and quality consistency through an integrated supply chain, including the use of the patented plants in the Northern and Southern hemispheres to optimize supply across growing seasons. Contracted farmers in Brazil began initial growth of the stevia plant for Corn Products more than a year ago.
"In addition to current access to Morita's production in Japan, Corn Products is committing about $20 million to begin construction this year of a dedicated plant in Brazil, with a year-end 2009 completion date, to meet expected growth in customer demand," Scott said. "Enliten(TM) will be marketed in select Latin American and Asian countries, where the sweetener is already approved for use in food."
Corn Products will file for regulatory approval of Enliten(TM) in the US, a process that is expected to take several years to complete, and is evaluating filings in Europe.
"While the commercialization and production scale-up of Enliten(TM) is not expected to make a significant contribution to our revenues in the near-term," Scott said, "this is another initiative we are taking to lay the groundwork for longer-term, profitable growth."
Scott said Enliten(TM) and the agreement with Morita fits well with Corn Products' strategy to expand its value-added ingredients portfolio through multi-geographic alliances, joint ventures and acquisitions. As an example, he cited the Company's acquisition of a family of sugar-free, reduced calorie polyol sweeteners in the US and Brazil in early 2007.
"Morita is a pioneer in the development of several stevia plant varieties, including patented varieties in the US and Japan," Scott said. "Our agreement combines Morita's 30 years of experience with stevia and Rebaudioside A with Corn Products' global operating footprint and decades of local and regional marketing knowledge and strong customer partnerships. We are excited about the commercialization prospects for Enliten(TM) in the years ahead."
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