UPDATE 1-Cargill names GLG Life Tech as supplier
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NEW YORK, Jan 4 (Reuters) - Agricultural company Cargill Inc [CARG.UL] said on Friday that GLG Life Tech Corp (GLG.TO) will be one of its suppliers for the natural sweetener rebiana, which it is developing with Coca-Cola Co (KO.N).
Rebiana is a calorie-free sweetener made from extracts of the stevia plant, native to Paraguay. Cargill and Coke plan to use it in food and drinks that would appeal to health-conscious consumers and natural grocers such as Whole Foods Market Inc (WFMI.O), which tend to carry products made from natural ingredients.
At the moment, many diet and low-calorie products are made with artificial sweeteners such as aspartame and sucralose -- more commonly known as NutraSweet and Splenda.
Canada-based GLG, which had C$5.4 million in revenue for the first 9 months of 2007, will become a key supplier, though there will be others, such as PureCircle Ltd (PURE.L), based in Kuala Lumpur.
"This is the best commercial deal we have to date," Brian Meadows, GLG's chief financial officer, said in an interview.
Stevia, which is 200 to 400 times sweeter than sugar, is only approved in the United States as a dietary supplement, not as a food additive.
Cargill said it hopes to get U.S. approval within two years, but plans to market the product first in countries where it is approved, such as Japan, China and Brazil. (Reporting by Martinne Geller, editing by Carol Bishopric, Gary Hill)
