GLG boosting rebiana production

By Martinne Geller

CHICAGO (Reuters) - GLG Life Tech Corp (GLG.TO) is ramping up its production capacity for rebiana, a natural zero-calorie sweetener, to meet a growing demand it sees ultimately reshaping the global food and beverage industry.

Speaking at the Reuters Food and Agriculture Summit in Chicago on Monday, GLG President Brian Palmieri said the company now has the capacity to process 500 metric tonnes of rebiana a year, but that he sees that jumping to 2,500 metric tonnes a year by the end of 2009, according to current plans.

"That gives you a good indication of where we see the market going in terms of capacity," Palmieri said.

Last year, GLG's capacity did not meet demand, Palmieri said, adding that it probably will not meet demand in the first quarter of 2009 either.

Palmieri declined to give earnings or sales forecasts, since GLG has not yet reported fourth-quarter results.

Palmieri said demand for the natural sweetener is increasing, especially since U.S. health regulators recently deemed it as "generally recognized as safe." That paves the way for rebiana to be sold as a tabletop sweetener and to be used as an ingredient in packaged foods and drinks.

Rebiana, a zero-calorie sweetener made from the South American shrub stevia, is a natural alternative to artificial sweeteners like Equal, Sweet'N Low and Splenda.

"GLG is in some form or another dealing with every major food and beverage company you can think of," Palmieri said. "We're dealing and talking to a lot of people ... in this global marketplace."

Coca-Cola Co (KO.N) is introducing low-calorie versions of Sprite, vitaminwater and Odwalla juices with a stevia-derived sweetener made by Cargill Inc CARG.UL, while PepsiCo Inc (PEP.N) is launching new lower-calorie versions of SoBe drinks and Tropicana orange juice with a sweetener developed with Merisant Co MERWO.UL. GLG is a key supplier to Cargill.

Dr Pepper Snapple Group Inc (DPS.N) has not announced a modified version of one of its own brands yet, but is looking closely at the opportunity. It said last week that it would distribute a sports drink with a sweetener derived from stevia.

Palmieri said stevia may be used in a range of products, but that he sees roughly two-thirds of the sweetener sold being used in drinks, about one-third going toward confectionary products and a much smaller portion being used as a tabletop sweetener.

Stevia is approved as a food additive in over a dozen countries including China, Japan and Brazil, but not in the European Union. Recent acceptance by the United States, Australia and New Zealand gives Palmieri hope that other regions will soon follow.

"We anticipate the entire globe being open ... From what I know ... I think we're going to be pleasantly surprised at how quick Europe adopts stevia," he said.

GLG shares closed at C$2.39 on the Toronto Stock Exchange, up 4 cents.

(Editing by Matthew Lewis, Phil Berlowitz)