Stevia as a Mainstream Sweetener! · PDF file18/11/2009 · Stevia as a Mainstream...

Stevia as a Mainstream Sweetener! Emerging Sustainability & Market Challenges

Stevia World Europe (18 Nov 2009, Frankfurt)Stevia World Europe convenes in Frankfurt on 18 November 2009 as the stevia industry prepares for wider take-up in Europe. This event, a follow up to Stevia World 2009, presents updates on the latest regulations, products, technologies, tools, techniques, and services in the Stevia Value Chain. Held in conjunction with a major food ingredients expo in Frankfurt, Stevia World Europe will see participation from Stevia buyers, sellers, regulators & F&B Executives. Leading stevia industry associations and advocacy groups including the European Stevia Association (EUSTAS), the Japan Stevia Association, the Paraguay Stevia Chamber, the American Botanical Council and the Italian National Stevia Association (NASTEVIA) are supporting the conference.

For more information on STEVIA WORLD EUROPE please visit www.steviaworldforum.com

STEVIA AS A MAINSTREAM SWEETENER! EMERGING SUSTAINABILITY & MARKET CHALLENGES© 2009 KnowGenix & Centre for Management Technology. All Rights Reserved. 2

A Position Paper by KnowGenix in line with Stevia World Europe 2009

Stevia landscape is fast changing as new product launches face pressure on regulatory and consumer fronts. The last few months have seen increasing demands for global harmonisation, quality and reference standards. Besides, the issue of sustainability and developing best practices to address them have also come to the fore now.

This position paper is an attempt to debate the key determinants driving Stevia business today and emphasize the need to develop best practices for a sustainable Stevia industry.

A. INTRODUCTION

Sweeteners market, and in particular Stevia market, has seen intense activities through 2009. This followed FDA’s letter of no objection to GRAS, in December 2008, allowing the use of Reb A, known as Rebaudioside A or Rebiana, of 95% purity and above in food and beverages.

Despite the potential, Stevia markets face major challenges, relating to the following factors.

• Supplyreliabilityofhighqualitystevialeaves(>90%Steviosidecontent)• Accesstoextractionandrefiningtechnology• Competitivecoststructureforupstream,midstreamextractionand downstream production• Shiftsinregionaltastepreferences• Consumeracceptance• Complexitiesinmanagingsupplychain


B. FLAVOUR MASKING: SYNERGIES AND ALLIANCES TO THE FORE

Perhaps, the most challenging aspect of developing markets for Stevia products has been the aftertaste. Leading Reb A players have all been focusing on research alliances with flavour companies to eliminate the bitter aftertaste without loosing Reb A’s ‘natural’ status

Flavor companies are launching tool boxes and solutions for eliminating the aftertaste associated with Stevia-derived sweeteners. While companies continue to develop masking

agents, there are some who view the issue as one of right purity levels and the amount of Reb A being used. These activities are even more relevant when it comes to applications such as beverage and bakery products.

Comax flavours, Symrise, Firmenich & Sensient Flavours for example, have all been busy developing new masking agents for Stevia, with each of them working on customisation for a variety of applications.

Givaudan has been directing its taste research, sensory science and receptor-guided ingredient discovery to address the bitterness associated with Reb A. Screening of a diverse chemical library has led to a portfolio of more than 20 new flavour ingredients effective against Reb A bitterness. Over the last two years Givaudan has obtained regulatory approval for six new natural ingredients for taste improvement.

Cargill’s focus covers cellular level understanding of taste responses to developing flavour solutions. Sensient Flavors on the other hand has applied its flavor masking technology to a slew of products to deal with potential off-notes associated with Stevia derived sweeteners.

Comax has been working with companies using Reb A in their formulation and has reported improved results with sensory panels and its prototype product samples.


In the US, Sunwin International Neutraceuticals has formed an alliance with Wild Flavors to produce proprietary sweetening blends for food and beverages. PureCircle and Firmenich have entered into an exclusive global collaboration to accelerate the commercialization of Reb A in the global food and beverage industry using Firmenich’s flavour masking and sweetener enhancing technologies.

Symrise recently launched a new toolkit of flavour masking solutions to help food manufacturers overcome the off-notes and aftertaste associated with Stevia derived sweeteners. These solutions are customised according to customer specifications. Designed based on Symrise’s LC Taste system, this ‘tool box’ combines HPLC based separation technology to identify molecules from natural sources that are flavour activators, and sensory evaluation by a tasting panel. Customers use elements of the toolbox according to the Stevia material and its application.

As the overall flavour depends heavily on the food matrix, there is no single solution to the flavour and sweetness issues. Hence, customisation is needed. Besides, there are regional variations in taste, and companies are attempting to cater to different taste preferences. European consumers prefer a sweetness profile similar to sucralose, whereas US consumers prefer the sweetness of high fructose corn syrup.

As new product launches are being planned, masking flavours are likely to be the key ingredients deciding the market acceptability of Stevia products. New Stevia product launches are still in their infancy. The Innova Database recorded over 120 launches containing stevia over the 12 months to the end of October 2008. As many as 50 new product launches were in Japan, led by savoury snacks and biscuits.


C. RESEARCH FOCUS ON PRODUCT SAFETY AND PHOTO STABILITY

On the research front, investments are being channelled to develop protocols related to the safety and toxicity of Reb A, to ensure that they are safe for use as sweeteners in food and beverages. Reb A hasmetallcurrentJEFCA(JointFAO/WHOExpertCommitteeonFoodAdditives)specifications for Steviol glycosides. [1]

Resolving photo stability issues has been a challenge for researchers since there have been questions about the stability of Reb A in applications such as beverages. [2]

A recent study in Food and Chemical Toxicology, by Burdock Group has validated that Reb A is not genotoxic. This study was done according to Organization for Economic Co-operationandDevelopment(OECD)andFDARedbookguidelinesforgenotoxicitystudies. [3]


D. EVOLVING REFERENCE AND QUALITY STANDARDS – AN IMPERATIVE

Reb A is produced globally in widely different climatic and geographical regions and has been often found to be inconsistent in quality and purity. It is important for ingredient producers to demonstrate the quality of their ingredients to their customers. Developing new reference standards for Reb A is a significant effort in that direction.

Reference standards for Reb A are authenticated pure chemicals that food and beverage manufacturers as well as producers use to substantiate the quality of their ingredients. This helps to protect against low-quality and potentially adulterated ingredients, and thereby ensures food safety.

The key impurities in Reb A are Rebaudioside B, Rebaudioside D, Rubusoside, Stevioside, Steviol, and Steviolbioside. The reference standards are expected to confirm the identities and accurately quantify these impurities.

Cerriliant and ChromaDex are both involved in developing such reference standards. Cerilliant has introduced two new certified reference standards for assessing the purity of Reb A. Reb A compounds being hygroscopic there is a need to develop new forms of storage for measuring purity. Cerilliant supplies its reference standard Reb A ingredients in an ampoule format. ChromaDex also develops analytical standards for ingredients to ensure quality and consistency of its Truvia Reb A sweetener [4]. While ChromaDex has partnered with Cargill, Cerilliant is tied with PureCircle for developing such standards [5].



With increasing demand for consistency in quality of Stevia products, food and beverage manufacturers are focusing on developing quality standards for the sweetener Reb A through the Food Chemicals Codex Forum.

As manufacturers worldwide start incorporating this new ingredient into their products, the need to assure users of the quality and consistency and purity will be critical. The quality standard is expected to help in this venture.

USPharmacopeia(USP)hasalreadydevelopedasetofnewreferencestandardsforStevia derived sweeteners Reb A and Stevioside for inclusion in the Food Chemical Codex(FCC),acompendiumthatsetsbenchmarksfortheidentity,qualityandpurityoffoodingredients.TheUSPharmacopeial(USP)ConventionisalsoseekingindustryparticipationtocommentonaproposedRebaudiosideA(RebA)standardtobeincludedintheFoodChemicalsCodex(FCC).

These documents and associated reference standards will set out specifications related to the ingredient’s identity, purity and potential impurities, and will include supporting analytical test procedures and USP chemical reference standards. [6]

They will also provide an objectively established standard against which both producers and purchasers can compare their ingredients to assure their quality.

E. EVOLUTION OF REGULATORY APPROVALS

Regulations related to the use of Stevia products have been evolving continuously over the last few years. A brief on regulatory evolution is tabulated below.

Source: The Food Science and Technology Centre of Jinan, University, Guangzhou, PRC at CMT’S Stevia World Summit in China, 2009

With evolving technologies and improved Steviol glycosides production processes, there have been increasingly higher requirements on product quality.

Regulatory approvals for Stevia with 95% Steviol glycoside are just around the corner with a couple of approvals awaited: EU Approval expected by Q2 -2011 and French AFSSA national authorization expected by mid 2009.

Year

2004

2007

2008

2009

Status

JECFA Provisional Standard stipulated that glycosides content shall benolessthan95%(afterdrying).Stevioside and Rebaudioside A together shall account for no less than 70% of the total amount of steviol glycosides.

Specified that Steviol glycosides content shall be no less than 95% ofthetotalweight(afterdrying).ItdidnotspecifythecontentofRebaudiosideA.Methanolresidueshallbenomorethan200mg/kg.

Ethanolresidueshallbenomorethan5000mg/kg.

FDA stipulated that Rebaudioside A and Stevioside shall be declared separately as food additives


F. STEVIA INDUSTRY TRENDS

i. Markets According to Global Industry Analysis, Artificial Sweeteners, July 2007 report, out

of the total sweeteners market of around USD 47.5 bn in 2007-08, Stevia markets accounted for USD 5.5 bn and a likely USD 8.2 bn by 2015. Beverages are expected to spur Stevia growth while other products like yoghurt, confectionery and gums are all set to make an impact.

ii. Pricing Dynamics Economics and pricing will be key

determinant in the growth of Stevia as discussed in the previous position paper by KnowGenix. [7] Prices vary widely between manufacturers for the same product making the pricing a complex issue. It is critical for suppliers to rationalise Stevia prices to enter the mainstream ingredient business. Economies of scale and distribution will also throw up new challenges impacting the pricing.


G. STEVIA CULTIVATION: PROMISE OF TISSUE CULTURE

Cultivation of Stevia leaves with high percentage of Stevioside is a complex task requiring improved agronomical practices. At present cultivators adopt two approaches for cultivation of Stevia.

a. Vegetative propagation offers the advantage of high purity quotient and good quality. The key disadvantage is the autumn and spring propagation of seedlings besides the high cost of cultivation of seedlings and the decrease in percentage of Steviol glycosides and the percentage of Rebaudioside A.

b. Sexual propagation involves high possibilities of degradation leading to low total Glycosides and Rebaudioside A content.

Tissue cultures emerges as the preferred option: Current cultivation practices are moving towards tissue culture plants as these plants are genetically pure and free from pathogens. Besides, the tissue culture plants can be planted throughout the year, except during peak summer.

Though stem cuttings which are expensive are used for vegetative propagation, tissue culture plants have proven to be the best planting

material for Stevia. It is reported that the success rate of establishment of the stem cuttings is very low.


H. TOWARDS BEST PRACTICES

i. Need for improved agronomical practices: There are about 90 varieties of Stevia Rebaudiana. Developed for different climates they often perform very differently in different climate conditions. More than the yields it is the Stevioside and Rebaudioside content in the Stevia leaves that determine the price and marketability of Stevia leaves. Hence, it becomes imperative that the grower selects proper varieties with adequate guarantees from the planting material suppliers about minimum assured Stevioside and Rebaudioside contents.

Rebaudioside A content in Stevia leaves is related to plant variety, region, method of cultivation, preservation and preparation processes. Existing Stevia leaves can produce different Rebaudioside A contents, but the use of sophisticated process and equipment and higher raw materials and per-unit energy cost are expected to push prices up.

ii. Four pronged approach to best practices for Stevia: There are four key elements needed for developing best practices for Stevia cultivation. These are;

• Effectivemanagementofgeneticresourcestodevelopimprovedcultivars. • Developmentofmarketdriventechnologiestoimprovetheefficiency

of breeding. • Reducingvariabilityinyield,quality,throughdevelopmentof

site-specific technologies. • Integratingsocialneedswithbusinessgoalstodevelopimproved

rural economy.

iii. Critical need for certification: The vast number of Stevia products in the market has led to confusion over several mixed Stevia products. A certification will ensure whether a product is a mixture of Stevia compounds such as Rebaudioside A and B, or if a single compound.


IN CONCLUSION

There is a need to speed up the development of flavouring and fragrance technologies. Food and beverage companies need to launch new products utilizing Stevia for the markets to develop. Even as Stevia markets are growing, developing sustainability criteria and adopting region-specific best practices should remain a priority.

In the future, Stevia market growth will hinge on:

• Customerpreferences• Proximitytomarkets• Marketdrivencultivation• Technologytoensureproductreliabilityandconsistency• Leveragingthepromiseoftissueculture

Identifying appropriate seedlings, improved agronomical practices, access to extraction technologies, market acceptance of new products, threats from other sweeteners and rationalization of cost structures will also prove to be major challenges.

Indeed, the sweetener markets are in for an exciting phase.


REFERENCES

[1]FoodandChemicalToxicology(July2008)Vol.46,Supplement1,PagesS1-S92

[2]http://www.foodnavigator-usa.com/Science-Nutrition/Study

[3]FoodandChemicalToxicology,Publishedonlineaheadofprint,doi:10.1016/j.fct.2009.04.046 “Genotoxicity studies on a high-purity Rebaudioside A preparation” Authors: L.D. Williams, G.A. Burdock

[4[http://www.foodnavigator-usa.com/Financial-Industry/Cerilliant-releases-new-Reb-A-reference-standards

[5]http://www.foodnavigator-usa.com/Financial-Industry/Stevia-reference-standards-developed-for-Food-Chemical-Codex

[6][http://www.foodnavigator-usa.com/Financial-Industry/Quality-standards-proposed-for-stevia-derived-sweetener]

[7] KnowGenix Position paper, “Stevia as an alternative sweetener- promise and challenges”, Feb 2009]

Note: This paper takes a macro level view of developments through 2009 and should not be construed as a comprehensive document. Stevia business is still on a learning curve in technology, agronomy and market practices. There are several gaps in our understanding of this evolving market. Feedback is sought on this paper for our continuing effort in analyzing Stevia markets.


ABOUT THE AUTHOR

This Position Paper, ‘Stevia as a Mainstream Sweetener! Emerging Sustainability & Market Challenges’ was written by Dr. R. Rajagopal, Chief Coordinating Officer of KnowGenix.

KnowGenix is a business research and growth strategy firm involved in chemical, material and energy practices. The firm researches business and technology trends in petrochemicals, fine, specialty and life science chemicals value chain as well as in materials and energy. It offers a host of services including business optimization, competitive intelligence, knowledge documents and executive training to clients in oil, gas and chemical value chain.

KnowGenix,isaKnowledgePartnerofCentreforManagementTechnology(CMT).

For more details visit www.knowgenix.com orsend an e-mail to [email protected]


ABOUT CENTRE FOR MANAGEMENT TECHNOLOGY (CMT)

CentreforManagementTechnology(CMT)isaworldleaderin renewable energy, alternative fuels, petrochemicals &commodity conferences, conducted in over 23 countries.

CMT’s commodities conferences have explored upcoming market opportunities & industry trends for strategic commodities like Grains, Oilseeds, Stevia, Sweeteners and Sugar etc. We were behind globally recognized events like:

Stevia World 2009 (14-15 May 2009, Shanghai) Over 150 key Stevia stakeholders from 31 countries attended this event in Shanghai, including top stevia growers, refiners, traders, key stevia organizations, government officials, scientists and investors. Recognized as the world’s first international Stevia conference, Stevia World 2009 generated extensive industry buzz and media coverage, and provided insights on upcoming opportunities and markets and regulatory environments. The world’s top Stevia producers including PureCircle, GLG Lifetech Corporation sponsored Stevia World 2009.

World Grains Trade Summit (17-18 Feb 2009, Singapore)This event was held to mark the growing prominence of Asia in the world grains market. Attracting over 200 top decision makers shaping the world’s grains & oilseeds industries from over 30 countries, World Grains Trade Summit was well received in the community. World Grains Trade Summit was sponsored by the industry’s most influential organizations including SGS, Monsanto, Glencore Grain, Intertek Agri Services, Concordia Agri-trading & Nibulon Ltd.

3rd World Sugar Trade Summit (5-6 Feb 2007, Dubai) The event attracted over 400 key sugar industry executives from 50 countries around the world. Recognized as 2007’s largest and most important Sugar industry conference, 3rd World Sugar Trade Summit was sponsored by top companies including Al Khaleej Sugar, Euronext Liffe, New York Mercantile Exchange and Coimex Trading (Suisse) SA.



Copyright © 2009 by KnowGenix & Centre for Management Technology. All rights reserved.No part of this position paper may be republished in any form whatsoever, electronic, or mechanical — without expressed written consent from the author. You may, however, distribute the PDF document without any alteration, to your colleagues and business associates that you think will benefit from the author’s insights; however, you are not permitted to offer this paper as free or paid download material through any internet sites.

Disclaimer And/Or Legal NoticesThe information presented herein represents the views of the author as of the date of the publication. Because of the rate at which conditions change, the author reserves the right to alter and update his opinions based on the new conditions. This position paper is for informational purposes only and the author does not accept any responsibility for any liability resulting from the use of this information. While every attempt has been made to verify the information provided here, the author, resellers and affiliates cannot assume responsibility for errors, inaccuracies or omissions. Any slights of people or organizations are unintentional.

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