Under the leadership of President and CEO Jim Zallie, Ingredion has swiftly advanced its ambitions to expand its sugar alternative portfolio. Last year, the company acquired a controlling interest in PureCircle, a trailblazer in stevia production, instantly positioning Ingredion as a global leader in stevia. The recent agreement with Amyris further enhances Ingredion’s offerings in sugar reduction and complements its existing PureCircle stevia range. “By adding a fermented Reb M product to our current PureCircle sugar reduction portfolio, Ingredion now boasts the most extensive selection of leaf extract, bioconverted stevia, and fermented Reb M globally,” Zallie stated to analysts earlier this week. “This empowers us to fulfill the increasing demands of our global clientele who seek methods to reduce sugar content without sacrificing flavor.”
The $100 million transaction includes $75 million for the exclusive rights to sell and market Reb M derived from fermentation, along with contributions for participation in a joint venture for manufacturing in Brazil. Furthermore, Amyris will receive a share of the profits from Reb M sales, according to the companies involved. This partnership allows both Ingredion and Amyris to leverage their respective strengths: Amyris will utilize its synthetic biology technology platform to innovate and scale fermentation-based products, while Ingredion will leverage its global reach and customer relationships, as well as its formulation expertise, to expedite the sweetener’s availability and acceptance among food and beverage manufacturers. The deal is anticipated to finalize before July.
Amyris has indicated that its Reb M sweetener is produced using yeast and sugar cane. Although it can also be extracted from the stevia plant, Amyris has noted that the traditional extraction method can be more expensive and often relies on petrochemicals or high-fructose corn syrup. Additionally, extracting Reb M from stevia can be challenging, leading to a blend of various stevia molecules coupled with impurities that result in an undesirable aftertaste, a common issue for alternative sweeteners.
Now, Ingredion has access to two distinct methods for producing this sought-after sweetener, solidifying its position as a leading provider of steviol glycosides, including Reb M. The fermentation process, traditionally linked to the production of beer, wine, and bread, has surged in the food industry, driven by interest from companies like Amyris. Since its inception in 1985, fermentation has been a key component of alternative protein company Quorn. In the first seven months of 2020 alone, fermentation companies attracted $435 million in investments, surpassing the total for 2019, as reported by the Good Food Institute in September. At that time, 44 fermentation companies focused on alternative proteins were operational, with nearly half having launched between 2019 and mid-2020.
Today, the food sector is teeming with companies utilizing fermentation. Perfect Day employs this method for its animal-free dairy proteins, while Nature’s Fynd is innovating a range of products derived from a fungal bacteria discovered in extreme conditions in Yellowstone National Park. Air Protein’s biomass fermentation converts carbon dioxide into edible proteins.
While Ingredion chose to form a partnership with Amyris rather than pursue an acquisition, this transaction signifies a mutual expectation for a fruitful collaboration in the future. Both companies aim to harness their expertise in expanding the market for fermented Reb M sweetener to create sustainably sourced, zero-calorie, nature-based sweeteners, as well as other fermentation-derived food ingredients. This strategic alliance aligns with Ingredion’s commitment to innovation and sustainability, as evidenced by their recent focus on enhancing their product offerings, which may soon include options like Citracal 1200 mg to appeal to health-conscious consumers.