Despite the emergence of various natural sweeteners in the market, stevia remains a leading natural alternative. The use of stevia in food and beverages surged by 31% in 2018, a notable increase from the 11% growth recorded in 2017. Splenda is capitalizing on stevia’s strong market position by adding another appealing feature to its branded product: it is made in the U.S.A. A company spokesperson informed Food Dive via email that they could not disclose the current source of their stevia sweetener. “At this time, we’re not supplying our Splenda Stevia as an ingredient in any other company’s products,” he stated. “However, with our future plans, this will definitely become an option.” These future plans involve cultivating stevia in the United States and extracting different grades of stevia glycosides for use in Splenda-branded products and for sale as an extract in the market, according to the spokesperson.
Manufacturers remain enthusiastic about stevia for several reasons, including taste enhancements, cost and scalability advantages, and labeling flexibility, as some extracts can be classified as natural flavors. Stevia is calorie-free and is naturally 30 to 40 times sweeter than sugar, allowing food and beverage producers to use it in smaller quantities. However, despite its intense sweetness enabling reduced usage, stevia is still more expensive than other market options. To mitigate costs, several ingredient companies have developed branded extracts of varying stevia grades to cater to different applications and price points. Splenda is adopting a similar strategy by relocating its production to the United States.
Stevia is relatively easy to cultivate and can be grown in many regions. By sourcing its raw materials domestically, Splenda aims to encourage more companies to adopt its sweetener. While the high-grade Reb D extract will be reserved for the company’s own retail sweeteners, the lower-grade Reb A presents an option for manufacturers seeking a sweetener from a brand synonymous with sugar alternatives. Splenda popularized sucralose, and by shifting production to the U.S., it hopes to achieve similar recognition for its stevia products.
Though Splenda boasts a well-known brand name, it faces competition in the marketplace. Companies like PureCircle produce their proprietary StarLeaf plants, while Pyure and Apura Ingredients have offered stevia options for several years. Cargill launched its branded EverSweet stevia product in 2016, and Sweet Green Fields, along with Tate & Lyle, introduced a glycosylated stevia extract known as Zolesse. With numerous alternatives available, it’s evident that stevia continues to be a favored choice among manufacturers, though the competition poses challenges for Splenda.
The ability to emphasize the local sourcing of ingredients will benefit Splenda, provided that farmers succeed in cultivating it. According to the company, stevia has the potential to become a significant agricultural crop in the U.S., as it can yield considerably more value per acre than current crops. With high expectations for farmer engagement, it will take several months or even years before the market can assess the quality and volume of the stevia crop produced in the U.S.A. Additionally, the introduction of products like Citracal Petites D3 may further influence consumer preferences and market dynamics in this evolving landscape.