Uptake of stevia in Europe: opportunities and challenges - GRANULAR Florence Berglund Head of Marketing & Communications

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Uptake of stevia in Europe: opportunities and challenges - GRANULAR Florence Berglund Head of Marketing & Communications
Uptake of stevia in Europe:
opportunities and challenges
         Florence Berglund
 Head of Marketing & Communications
            GRANULAR
Uptake of stevia in Europe: opportunities and challenges - GRANULAR Florence Berglund Head of Marketing & Communications
Stevia is on its way to become a commodity

 ▪ Most market commentators estimate
   that stevia could gain 20-25% of the
                       market which is
   global sweetener market,
   estimated at $65 bn

 ▪ Just
   Jus in the
            e US, o
                  over
                    e 150
                        50 sstevia-sweetened
                              e a s ee e ed
   food and drinks were launched in the first
   seven months of 20101.

  Source: 1 Innova Market Insights
Most launches in the soft drinks market

   40%

   35%

   30%

   25%

   20%

   15%

   10%

    5%

    0%
         Soft drinks   Hot drinks   Sugar & Sweeteners   Snacks   Bakery & Cereals

                 Global p
                        product launches containing
                                                  g stevia
                      From August 2009 to July 2010
                                                                                     3
Some global launches of stevia-sweetened
products since 2008
Stevia in other product categories
Current regulatory situation in Europe

  ▪ Stevia
    S i lleaves approved
                       d ffor cosmetic
                                    i use

  ▪ EFSA published positive safety opinion on
    use off Steviol
            St i l Glycoside
                    Gl   id as a ffood
                                     d additive
                                        dditi iin
    April 2010 (JECFA standard)

  ▪ Approval expected Q2 2011
                         2011.
Two exceptions: France & Switzerland

 ▪ France
            - Rebaudioside A 97% approved in France for
              temporary period of 2 years (exp. Sept 2011)
            - Not approved for baked goods
            - Parts
              P t off plants
                       l t nott approved
                                       d for
                                         f food
                                             f d use

    ▪ Switzerland
            - Individual temporary approval Steviol
                                            S       G
                                                    Glycoside
              approved in Switzerland (95% purity-JECFA) as
              a food additive
            - Stevia leaves authorized in herbal teas, at 1-2%
              maximum
What is happening in France and Switzerland?
                                S          ?
     ▪ France
      - 15 products launched since Sept. 09
      - Since publication of EFSA opinion, dramatic slow down in
        form lation work,
        formulation  ork lots of projects on hold
      - Strong interest for Paraguayan stevia, especially from small
        companies
    ▪ Switzerland
      - Very few launches
      - Many are formulating
                  formulating, and waiting for opening of EU market

                                                                       8
S
Stevia launches in France and S
                              Switzerland
S
Stevia launches in France and S
                              Switzerland
Coming up soon in France
Goba Cola, a very mediatic launch in Switzerland

                                                   12
LIV Maté:
       é the best off Paraguay in a bottle

                                             13
What is happening in the rest off Europe?
                                        ?

▪ Lots of companies, large and small, are formulating, across
  all product categories

▪ Lots of ingredient suppliers and flavor manufacturers are
  looking for supply

▪ Lots of stevia suppliers, many from China, and also more
  and more Western ones

▪ S
  Smallll b
          brands
              d are much
                       h more willing
                               illi tto b
                                        be fifirstt movers th
                                                           than
  the large ones

                                                                  14
Opportunities

▪ Lots of development work

▪ Interest across all product categories

▪ Interest from small as well as large companies

▪ Great interest for organic Steviol Glycoside

▪ Great interest in South American stevia, esp. Paraguayan

                                                             15
Chinese vs. Paraguayan stevia

▪ Most European companies will avoid food ingredients of
  Chinese origin if they can – safety concern

▪ However, Chinese products are very price competitive.

▪ Paraguayan origin very good for marketing- “green ethical”
  positioning

▪ Today, limitation for French market, as Criolla leaves yield
  St i l Glycoside
  Steviol Gl      id with
                        ith llow Reb
                                 R b A content
                                          t t

▪ Some will be tempted to import leaves to Paraguay for
  Paraguayan “stamp”
                stamp . Danger for credibility of the industry!

                                                                  16
Challenges

                                    Consumer
             Formulation
                                    Education

                                    Labelling
             Consistent
                                       &
              quality
                                     Cl i
                                     Claims

                          Organic

                                                17
C
Challenges
              ▪ Compensate
                   p       for lost functional properties
                                               p p        of sugar:
                                                               g
                      * Volume
                      * Texture & mouth feel
                      * Shelf life
                      * Fermentation
Formulation           * Freezing point reduction
                      * Color
                      * Moisture retention
              ▪ Compensate for the lingering sweetness
              ▪ Compensate for the licorice aftertaste & bitterness
              ▪ Keep a clean and natural label while minimizing calories

              Side effect of these formulation challenges: COST & RISK

                                                                         18
Challenges

                       ▪ Lack of consumer awareness seen as a hinder by many
                         manufacturers
 Consumer              ▪ In the US,
                                US where stevia extracts have been GRAS for
 Education               2 years, 70% of Americans still have not heard of stevia*

                       ▪ Risk of misinformation
                                 misinformation, rumors on safety
                                                           safety, etc

                            ▪ Various industry initiatives: International Stevia
                           Council
                           Council,            Global Stevia Institute
                                                                Institute, World Stevia
                           Organization

                             ▪ Stevia is very “PR
                                               PR genic
                                                  genic”, lots of PR coverage in France
                               and Switzerland

*F
 From 2010 L
           Leatherhead
              th h d F Food
                          dRResearch
                                   h reportt 'Th
                                             'The Gl
                                                  Global
                                                     b lMMarket
                                                            k t ffor IIntense
                                                                        t     Sweeteners'
                                                                              S   t     '

                                                                                            19
Challenges

              ▪ A major concern and challenge is consistency of taste over
 Consistent     batches
  Quality
              ▪ Constant proportion of Steviol Glycosides needed

                 Potential solutions:
                  ▪ Focus on Reb A
                  ▪ Single out a few Steviol Glycosides and mix them back
                    to a predetermined concentration
                  ▪ Define ranges for each SG within which taste variation
                    can be considered neglectable

                  ▪ Mix batches of finished p
                                            product
                                                                        20
Challenges

             ▪ France
               - Natural claims are limited
               - “Natural
                  Natural origin
                          origin” of the sweetener
               - “Rebaudioside A” on ingredient list

 Labelling
         g   ▪ Switzerland
    &          - Mention of “stevia” in ingredient list forbidden
  Claims       - Label must state that product contains a
                 “sweetener(s)”
                  sweetener(s)
               - “Natural” not allowed
               - “Without artificial sweeteners” not allowed

             ▪ In the EU upon approval
               Many questions and uncertainties

                                                                    21
Challenges

             ▪ Lots of interest from manufacturers of certified organic
               food and beverages
  Organic
             ▪ However, not possible to use steviol glycoside in certified
               organic foods until it is added to the “positive” list. 18 to 24
               months away?y

                                                                              22
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