The acquisition includes a dedicated stevia production and R&D facilities in China
Tate & Lyle, the global provider of food and beverage ingredients and solutions, has acquired stevia solutions business Sweet Green Fields (SGF). The acquisition builds on a partnership, which began in April 2017 when Tate & Lyle became the exclusive global distributor of SGF’s portfolio of stevia-based ingredients. The sugar giant joined the business with a 15% equity investment in SGF a months later.
Chief executive Nick Hampton said: “Sweet Green Fields is an exceptional business with a leading portfolio of stevia solutions, a strong team of stevia experts and an impressive, fully-integrated supply chain. We are delighted to take our relationship to the next level by bringing Sweet Green Fields into the Tate & Lyle family.”
As part of the deal, Tate & Lyle gains a fully integrated stevia supply chain, including leaf sourcing, leaf varietal development, established agricultural programmes and cost-efficient manufacturing.
A low-sugar business
Stevia is one of the fastest-growing low-calorie sweeteners used globally, particularly in drinks, dairy and snacks, as demand from consumers continues to grow for foods and drinks that are lower in sugar and calories.
Tate & Lyle argued the deal strengthens its position as a provider of innovative sweetener solutions with the capabilities to create foods and beverages that are lower in sugar and calories and with cleaner labels for customers across the world.
The acquisition extends Tate & Lyle’s presence in the faster-growing Asia Pacific region with dedicated stevia production and research and development facilities located in Anji, China.
SGF revenue for the year ending 31 December 2020 is expected to be around $50 million, including revenue for products Tate & Lyle currently sells as distribution agent.
Globally, from 2015 to 2019, product launches that contain stevia grew by a compound annual growth rate of 15%. In the year ended 31 March, Tate & Lyle’s stevia revenues grew by 23%, making it an important contributor to New Products revenue growth.
Dean Francis, chief executive of SGF, said: “I am proud of the leading stevia business that the Sweet Green Fields team has built. Tate & Lyle, with its global customer reach, innovation focus, and strong sweetener portfolio, is the ideal company to take Sweet Green Fields forward, supporting food and beverage customers across the globe and enabling healthier consumer diets.”
Date published: 1 December 2020