Stevia First has signed agreements with Qualipride, a Chinese manufacturer of refined purified steviol glycosides, including an exclusive distribution agreement, obtaining worldwide rights to distribute stevia seed, leaf, and extract, and an exclusive technology license, obtaining exclusive rights (outside China) to utilise Qualipride's proprietary methods of stevia extraction and refining.
The company says that the agreements provide it with preferential access to extensive stevia production capacity and will provide key expert technical staff to join Stevia First as part of its management team. Insofar as the company's focus continues to be on developing operations in California, Stevia First said that it views this opportunity to accelerate commercial activities as a means to service increasing global demand for stevia as a growing number of multinational beverage companies seek a dramatic increase in the total output of the stevia industry.
Stevia First aims to leverage its exclusive rights to significant overseas production capacity in combination with pioneering methods such as enzyme enhancement that could enable 2-3 times more stevia extract from the same amount of leaf, and by also building a North American supply chain that uses mechanised production which could have notable advantages compared to overseas producers. Rights obtained through the exclusive technology license could, according to the company, readily enable the first reliable North American supply chain, including facilities in California that set new standards for the industry in terms of energy efficiency, water conservation, and environmental safety.
Stevia First expects to generate significant revenue as a result of the exclusive distribution agreement, and has commenced marketing its stevia products to multinational food, beverage, and ingredient manufacturers that have previously expressed interest in its innovative stevia production methods. Through its newly-formed supply chain network and agreements, the company now has access to more than 100 metric tons of stevia leaf extract available for immediate resale. Stevia First can now also enter into long-term supply agreements offering more than 1,000 metric tons of stevia leaf extract annually. Stevia First says that this supply chain capacity represents one of the largest in the world today for high-purity Reb A, which is currently valued at over $100,000 per metric ton due to tightly held supply across the industry.
"We've harnessed a successful team that is one of the best kept secrets in the stevia industry through this arrangement, and have forged an alliance that will bear fruit for many years to come," said Robert Brooke, CEO of Stevia First.
"We are eager to take these next steps with Stevia First,” said Dong Yuejin, president of Qualipride, who will join Stevia First in a managerial position and as a partner. “Our proven ability to deliver on large orders combined with a mutual interest in long-term R&D is a powerful combination."
