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©PURECIRCLE 2019 CREATING BEST-TASTING SOLUTIONS Interim Results 2019 Presented by Magomet Malsagov Rakesh Sinha 12 March 2019

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Page 1: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

CREATING BEST-TASTING SOLUTIONS

Interim Results 2019

Presented by

Magomet Malsagov

Rakesh Sinha

12 March 2019

Page 2: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

DISCLAIMER

• This document, which is personal to the recipient and has been issued by PureCircle

Limited (the “Company”), comprises written materials/slides for presentations to be held

in September 2017. This document does not constitute or form part of any offer or

invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any

shares in the Company, nor shall any part of it nor the fact of its distribution form part of

or be relied on in connection with any contract or investment decision relating thereto,

nor does it constitute a recommendation regarding the securities of the Company.

• This document has not been verified, does not purport to contain all information that a

prospective investor may require and is subject to updating, revision and amending. The

information and opinions contained in this document are provided as at the date of this

presentation and are subject to change without notice. In furnishing this document, the

Company does not undertake or agree to any obligation to provide the attendees with

access to any additional information or to update this document or to correct any

inaccuracies in, or omissions from, this document that may become apparent.

• No reliance may be placed for any purposes whatsoever on the information or opinions

contained in this document or on its completeness. No representation or warranty,

express or implied, is given by or on behalf of the Company its directors, officers or

employees or any other person as to the accuracy or completeness of the information or

opinions contained in this document and no liability whatsoever is accepted by the

Company or any of its members, directors, officers or employees nor any other person

for any loss howsoever arising, directly or indirectly, from any use of such information or

opinions or otherwise arising in connection therewith.

• This document and its contents are confidential and may not be reproduced,

redistributed or passed on, directly or indirectly, to any other person or published, in

whole or in part, for any purpose. This presentation is for information purposes only and

is directed only at, in the United Kingdom, qualified investors who are persons who (i)

have professional experience in matters relating to investments falling within Article

19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005

(the “Order"); (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth

companies, unincorporated associations, etc") of the Order; or (iii) are persons to whom

it may otherwise be lawfully communicated (all such persons together being referred to

as "Relevant Persons"). By attending the presentation to which this document relates or

by accepting this document, you will be take to have represented, warranted and

undertaken that you are a Relevant Person.

• Certain statements, beliefs and opinions in this document, are forward-looking, which

reflect the Company’s or, as appropriate, the Company’s directors’ current expectations

and projections about future events. By their nature, forward-looking statements involve

a number of risks, uncertainties and assumptions that could cause actual results or

events to differ materially from those expressed or implied by the forward-looking

statements. These risks, uncertainties and assumptions could adversely affect the

outcome and financial effects of the plans and events described herein. Forward-looking

statements contained in this document regarding past trends or activities should not be

taken as a representation that such trends or activities will continue in the future. The

Company does not undertake any obligation to update or revise any forward-looking

statements, whether as a result of new information, future events or otherwise. You

should not place undue reliance on forward-looking statements, which speak only as of

the date of this document.

• By attending the presentation to which this document relates or by accepting this

document in any other way you agree to be bound by the foregoing provisions.

Page 3: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 20193

Presented by

Magomet Malsagov, Chief Executive Officer

OVERVIEW

Page 4: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

CHIEF EXECUTIVE’S OVERVIEW

• Implementation of new strategy centred around best tasting products from Starleaf™ continues to gain momentum

• Scaled & Commercialised our new technology to convert RebA to RebM

• Results include sale of meaningful quantities from next generation stevia sweeteners based on Reb M both directly extracted fromleaf and via conversion of first generation stevia

• Customers are switching and reformulating to Reb M due to the superior taste profile

• Reformulations have led to some cannibalisation of base business and the results of the first six months should be seen in this context. The pipeline is healthy.

• Sufficient production capacity of Reb M to sweeten circa 1 billion cases of zero-calorie carbonated soft drinks annually

• Food and Beverage launches containing best tasting products from Starleaf™ including new channels and notable brands

• Restructuring and significant strengthening of the go-to-market organisation initiated and will be completed in H2

$50.7m

39.2%

+240bps

$2.9m

+6.9m

Interim

Revenue

Adj.EBITDA Gross Margin Underlying

Net Profit

$11.6m

+49%$8m$25m

Gross Debt

ReductionExceptional

Items

Page 5: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

FOOD AND BEVERAGE INDUSTRY:

In need of sweetener innovation

• Global obesity crisis

• Sugar tax (passed/proposed)

• Activist advocacy groups

• Good for me

• Good for others

• Good for the planet

proposed new label

highlighting calories and added

sugars

• Sugar

• Artificial sweeteners

RISING PUBLIC

HEALTH CONCERNSCONSUMERS REDEFINE

HEALTH & WELLBEINGSWEET

UNDER FIRE

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©PURECIRCLE 20196

Evolution of Strategy

StarleafTM Stevia

Page 7: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

WHY REB M? From a range of options, we believe that Reb M

sweeteners combine the best of consumer needs with customer

requirements of price & capacity

7

NaturalConsumer

AcceptanceTaste Capacity

Regulatory

ApprovalPrice

Reb M (extract)

GMO Reb M

Reb A (extract)

Artificial Sweeteners

HFCS

Reb M (bioconversion)

Reb M (extract)

Reb M (GMO/fermentation)

Reb A (extract)

Monk Fruit

Artificial Sweeteners

HCFS

Sugar

Page 8: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 20198

Stevia Leaf Composition Getting to the Best Stevia Sweeteners

STEVIA LEAF – THE SOURCE OF INNOVATION

Steviol Glycosides

ProteinsFibers

Antioxidants REB M, D

Other glycosides

Original Strategy (Reb A) New Strategy

REB MREB M

Page 9: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 20199

WHAT CAN PURECIRCLE’S LATEST INNOVATIONS DELIVER TO

OUR CUSTOMERS

Customer + PureCircle

Cost Savings

COST & CAPACITY

Social Responsibility

FARMERS, WATER,

LAND

Growth

TASTE

Calorie Reduction

INNOVATION

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©PURECIRCLE 2019

…………….………….………….………….…………….…………..…………….…………..................

FEEDBACK FROM OUR CUSTOMERS AND THEIR DEVELOPERS

IS VERY POSITIVE

10

‘Such a big difference in taste vs. using Reb A’

‘We are finally able to formulate without any

aftertaste’

‘You can really taste the difference’

Page 11: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

CONSUMER DEMAND DRIVES STEVIA LAUNCHES WITH

REB M EMERGING

11

Global new product launches with stevia Reb M Sweeteners are taking off in a range of categories

75% of launches

occurred in the past 5

years

280478

1,163

2,278

2,963

4,410

'09 '10 '12 '14 '16 '18

MEA +33% -7%

LTAM +40% +33%

NTAM +12% 21%

Europe +13% +26%

APAC +19% +48%

5 yr CAGR 1yr

Total +19% +33%

Years are calendar years

Project gestation period from inception to launch is shorter for RebM than RebA due to superior taste

Page 12: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201912

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY

Social Responsibility

FARMERS, WATER,

LAND

Growth

TASTE

Customer + PureCircle

Page 13: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

GROWING AROUND THE WORLD

13

North Carolina Americas Africa India China

China Africa Paraguay

Suppliers 98 30 325*

Regions 11 3 1

Varieties 3 2 1

*Small scale farmers

Page 14: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201914

VERTICAL INTEGRATION AND SUPPLY CHAIN INNOVATION

MEANS THAT WE CAN NOW SCALE UP REB M PRODUCTION

1 BillionSeedlings

Scaling Reb M

Seedlings Dry Leaf

20,000 MTDry Leaf

3,000 MTReb M

Reb M CapacitySeedling to Finished Product

$600M Investment

TODAY: 3,000 MT Reb M

2 Refineries

*Reb M refers to extract and bioconversion process

Page 15: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201915

3,000 METRIC TONS OF REB M WILL:

20+ BN

Cases

7 Trillion Calories by

replacing sugar

with stevia across

3,000 MT

2 MillionMT Of Sugar

At 15% sweetness

levels

4.5 BN

Cases

1 BN

Cases@ 30% Sugar Reduction

Reduce Sugar Across

Remove Eliminate

@ 100% Sugar Reduction @ 15% Sugar Reduction

Page 16: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

PURECIRCLE REB M OFFERING IS COMPETITIVE AND WILL HELP

CUSTOMERS SAVE COST GOING FORWARD

16

$75

$100

$125

$150

$175

300 MT 1000 MT 3000 MT

Reb M SweetenerPrice / Volume

Reb M Sweetener

Page 17: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

PURECIRCLE’S REB M CAN PROVIDE UNPARALLELED COST

SAVINGS TO OUR CUSTOMERS

17

Attract New ConsumersReformulation

$600

MillionFrom switching

from sugar to

stevia

using 3,000 MT

Save

While Investing For Growth

Innovation

Page 18: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201918

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY

Social Responsibility

FARMERS, WATER,

LAND

Growth

TASTE

Customer + PureCircle

Page 19: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

REDUCE CALORIESCARBON

FOOTPRINT

WATER

FOOTPRINT

GLOBAL

FARMERSLAND USE

Save

25,000+

hectares

annually

Support

30,000+

Farmers

annually

Remove

7 Trillioncalories as

compared to sugar

equivalence

Reduce

600,000 MTOf Green

House Gasses

Save

1 TrillionLiters of Water

PURECIRCLE CAN HELP OUR CUSTOMERS WRITE NEW

SUSTAINABILITY STORIES

Using 3,000 MT of RebM could:

Page 20: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201920

Calorie Reduction

INNOVATION

Cost Savings

COST & CAPACITY

Social Responsibility

FARMERS, WATER,

LAND

Growth

TASTE

Customer + PureCircle

Page 21: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

21

Portfolio of Reb M Products Beyond Sweeteners

+ Improved solubility

+ Wider range of cost options

+ New beverage applications

+ Proteins, antioxidants, & fibers

+ Nutrition and health benefits

+ Support innovation brands

WE ARE ALWAYS INNOVATING ACROSS OUR SUPPLY CHAIN

Page 22: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201922

FINANCIALREVIEW

Presented by

Rakesh Sinha, Chief Financial Officer

Page 23: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

Revenue

Gross Profit

Gross Margin %

US$ (millions)

Other income

SG&A

Operating Profit

Operating margin %

Other Expenses

Finance Costs

Taxation

Share of Profit/(Loss) in JV

Forex

Net (Loss)/Profit

Net Profit %

PROFIT & LOSS FY2019Margins improve with increased Breakthrough volumes

1H FY19 1H FY18

EPS – Diluted (US Cents/Share)

Adjusted EBITDA

53.5

19.7

36.8%

0.5

(17.1)

3.1

5.7%

(2.5)

(3.2)

(2.2)

(0.4)

1.2

(4.0)

-7.5%

2.3)

7.8

50.7

19.9

39.2%

6.0

(14.7)

11.2

22.1%

(30.0)

(4.7)

3.2

(0.0)

(1.8)

(22.1)

-43.6%

(12.6)

11.6

• FY19 sales decreased by $2.8m (-5.2%) to $50.7m due to sales phasing and adoption of RebMcannibalising base business

• Improved Gross Margin by 240bps driven by category mix i.e. more Breakthrough

• Higher other income due to R&D and IP related payments.

• SG&A savings from restructuring and cost savings initiatives.

• Significant inventory write down of $24.2m primarily relating to by-products generated from early generations of stevia leaf. Classified as an exceptional item.

• Higher finance costs due to higher drawdown on financing facilities.

• Deferred tax assets recognised due to recent change in Malaysian tax regulations – this will reverse by year end

• Forex loss due to weakened Malaysian Ringgit vs USD

• Adjusted EBITDA improved 48.7% to $11.6m,.

• Net Loss of $22.1m due to inventory write down. Underlying Net Profit for the period excluding exceptional items is $2.9m

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©PURECIRCLE 2019

Asia, 11%

Europe, 43%

Americas, 46%

Revenue Mix by Geographic Region

Asia, 18%

Europe, 31%

Americas, 51%

Revenue Mix by Geographic Region

DIVERSIFIED REVENUE STREAMS

H1 F

Y1

8H

1 F

Y1

9

Basic Ingredients

40%

Value Added17%

Flavour32%

Breakthrough6%

Custom Blend

5%

Revenue Mix by Product Category

Basic Ingredients

43%

Value Added22%

Flavour31%Breakthrough

3%

Custom Blend1%

Revenue Mix by Product Category

• Growth from next generation,

better tasting stevia

sweeteners represented in

Breakthrough category, driving

margins

• Breakthrough grew 1.7x and

Custom Blends grew 5x

• Sales growth continues to be

achieved in North America and

Asia

• Strong growth of 14% in North

America

• Asia delivering high double

digit growth >75%

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©PURECIRCLE 2019

NON – CURRENT ASSETS

- Property Plant & Equipment

- Intangible Assets

- Other non-current assets

TOTAL EQUITY

TOTAL LIABILITIES & EQUITY

BALANCE SHEET

NON - CURRENT LIABILITIES

- Long-term borrowings

- Other payables & accruals

CURRENT ASSETS

- Inventories

- Trade Receivables

- Cash and bank balances

- Other current assets

TOTAL ASSETS

CURRENT LIABILITIES

- Trade payables

- Short-term borrowings

- Other payables & accruals

TOTAL LIABILITIES

200.0

354.5

178.8

112.2

37.7

14.6

14.3

354.5

109.0

106.5

2.5

45.5

17.0

11.7

16.8

154.5

US$ (millions) FY19 FY18• PPE: Depreciation

• Intangibles: Investment in leaf

development, IP and R&D

• Other non-current assets improved

with the recognition of deferred tax

assets

• Inventories: Decrease due to net

realisable value write down of

$24.2m

• Trade receivables: continued

improvement in receivables

management.

• Trade Payables: longer credit with

suppliers

• Net debt: $103.5m

226.4

389.6

212.3

122.5

57.5

23.9

8.4

114.9

112.9

2.0

48.3

20.5

9.2

18.6

163.2

389.6

175.7

96.0

63.1

16.6

177.3

100.1

64.1

13.1

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©PURECIRCLE 2019

Operating cash flow before

working capital changes

US$ (millions) 1H FY19 1H FY18

10.5

Increase in inventories

Decrease in trade and other

receivables

(Decrease)/Increase in trade

and other payables

(13.9)

17.9

(6.7)

Net cash from operations

before interest and tax 7.8

Net cash from operations after

interest and tax

Investing activities

Financing activities

3.2

(6.2)

(5.0)

Net cash flow (8.0)

Gross cash

Headroom

14.6

79.7

Operating cash flow before working capital improvement of +$2.8m

NET OPERATING CASH FLOW OF $7.8M

7.7

(22.2)

15.9

1.6

3.0

0.2

(14.2)

5.3

(8.7)

28.0

93.0

• Operating cash flow before working

capital remains positive

• Inventories increased mainly due to

leaf purchases in preparation for H2

(seasonality)

• Strong receivables management

• Investing mainly R&D projects and

capex additions

• Financing: Repayment on the

banking facilities.

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©PURECIRCLE 201927

SUMMARY & OUTLOOK

Significant opportunities for growth

Page 28: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

SUMMARY & OUTLOOK

Our new StarleafTM strategy, which enables us to provide the best tasting solutions for our food and beverage customers looking to reduce sugar naturally is on track

Positive feedback about great taste profile of our next generation stevia Reb M sweeteners.

Pipeline of projects with new products continues to grow in both existing and new channels.

Expect margins to strengthen as both reformulations and new launches will primarily be based on high margin products.

Sales to date in H2 show an improving trend versus the prior year

Everything we do is about helping our customers achieve their goals of reducing sugar/calories/cost of ingredients without compromising taste through high purity stevia solutions

Page 29: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201929

Q&A

Page 30: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 201930

Appendix

Greatest tasting stevia

Page 31: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

OUR GLOBAL FOOTPRINT

Page 32: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

HOW WE CREATE VALUE

We have successfully

commercialised a portfolio

that includes natural

sweeteners, flavours and

specialty ingredients

based on high purity

stevia.

PureCircle has deep

expertise across the value

chain, from seedling to

sweetener.

Research & Development (R&D)

Multi-disciplinary approach spanning plant breeding, agronomy, biotechnology, biochemistry,

food technology and sensory analysis

Commercialisation

• Scientific and Regulatory Affairs

• Sales & Marketing

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©PURECIRCLE 2019

WE TAKE MEASURES TO PROTECT OUR IP

• 32 new patents granted in last 12 months

• 150 granted patents and c.295 pending patent applications worldwide:

–Steviol glycosides production (extraction, new sweetener technology, fermentation

etc.)

–Steviol glycosides sweetener and flavor compositions

–Steviol glycosides use and applications

–Stevia varieties

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©PURECIRCLE 2019

OUR COMMITMENT TO STEVIA:

Farming communities

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©PURECIRCLE 201935

STEVIA LEAF HAS MORE TO OFFER THAN REB A

• 40+ Steviol glycosides in the leaf

• Taste synergies

• Each with unique attributes

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©PURECIRCLE 201936

Zero-calorie sweetness from nature…now with

a more sugar-like taste

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©PURECIRCLE 2019

WE ARE SCALING UP STARLEAFTM:Traditional, non-GMO, intelligent plant breeding

Conventional

Variety

2002

StarleafTM Stevia

Variety

2017>20x most sugar-like

glycosides(Reb M, Reb D, others)

vs. conventional leaf

PureCircle Reb A

Variety

20107x Reb A vs. conventional

leaf

Page 38: CREATING BEST-TASTING SOLUTIONS...• Implementation of new strategy centred around best tasting products from Starleaf continues to gain momentum • Scaled & Commercialised our new

©PURECIRCLE 2019

New Technology

• As stevia matures from seedling to full-

grown plant, the sweet parts of the

stevia leaf (called glycosides) are

formed.

• The leaf naturally produces enzymes

which convert Reb A to Reb D and then

to Reb M.

• We start with purified stevia leaf extract

with low Reb M and, by adding

enzymes, the maturation of Reb M is

completed, just as the leaf does

naturally.

• This produces a non-GMO stevia leaf

sweetener with high sweetness quality

and no bitterness.

Approvals

• USA

• Canada

• Ecuador

• Peru

• Columbia

• Malaysia

Fema approved as a Flavor (Global)

In Progress:

• Australia (estimate 2019)

• NZ (estimate 2019)

• EU (estimate early 2020)

• JECFA (estimate end of 2020)

• China (estimate 2020)

• Brazil (estimate 2020)

NEW REB M SWEETENER TECHNOLOGY

FY2018Reb M Sweeteners

• Launched StarleafTM Reb M which

produces Reb M from other stevia

sweeteners in the plant

• Reb M is the variant of stevia sweetener

which has the most sugar-like taste.

• PureCircle has enough Reb M to

sweeten 500M cases of zero-calorie

CSDs

• Targeting to double capacity of Reb M

in 3 years

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©PURECIRCLE 201939

MARKET DRIVERS

Powerful and dynamic

Presented by

Magomet Malsagov, Chief Executive Officer

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©PURECIRCLE 2019

• Worldwide obesity has more than

doubled since 1980.

• In 2014, 1.9+ billion adults were

overweight. Of these 600+ million

were obese.

• Estimated that Worldwide

diabetes will impact 1 in 10 adults

by 2045 – 629 million.

• Consumers seeking natural

sustainable sources for their

sweeteners.

http://www.who.int/mediacentre/factsheets/fs311/en/

http://www.diabetesatlas.org/, 7th Ed.

CONSIDERABLE GROWTH

In the stevia market

• Stevia approved in Brazil and

India. Now 5 billion consumers

have access to stevia.

• Sugar taxes being imposed in

major markets.

• As of 2018, 80% of the countries

that passed taxes did so in the

last two years.

• F&B industry now publicly

committing to reduce added sugar

and artificial sweeteners from their

product portfolios.

• Stevia increasingly being used as

part of the solution.

• Mintel report: > 17,000 products

now launched with stevia: > 80%

within the last four fiscal years.

• All major F&B categories now

adopting across all geographic

regions.

Global obesity and

diabetes continue to

increase

Potential of stevia market materially enhanced

Growing number of products adopting stevia

Growth prospects for the market has grown considerably versus 12 months ago

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Rising Public Health Concerns On Obesity & Diabetes Are Driving Increased

Government Engagement Globally

* N.B. Unverified content – for guidance only.

Soft drink taxes in effect

Barbados

Belgium

Brunei

Cambodia

Chile

Dominica

Fiji

France

Hungary

Ireland

Laos

Mauritius

Mexico

Nauru

Norway

Peru

Philippines

US Cities• Albany

• Berkeley

• Boulder

• Oakland

• Philadelphia

• San Francisco

• Seattle

• Washington

Taxes Proposed/raised

for discussion

Australia

Canada

India

Indonesia

Malaysia

Singapore

New

Zealand

UAE

Vietnam

Russia

Saudi Arabia

• Warning Label/Nutrition Label in Effect

Algeria

Canada

Brunei

Ecuador

Egypt

Malaysia

Portugal

Samoa

St. Helena

Thailand

UK

South Africa

Spain

Sri Lanka

Turkey

Peru

Portugal

Singapore

Taiwan

UK

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– Joint (FAO & WHO) Expert Committee on Food

Additives (JECFA) approved all Steviol Glycosides

(50+) , including minor sugar-like tasting molecules

from stevia leaf and published the amended

specification (JECFA 20) in December 2017.

– Codex Alimentarius adopted the amended Steviol

Glycoside specification in July 2018, which facilitates

the approval of sugar-like tasting molecules from

stevia leaf in major Latin America, Asia and Africa

markets in near future.

– At present, all Steviol Glycosides from Stevia leaf can

be used in the food & beverage applications in the

US, Canada, Australia, New Zealand, Israel, Brazil;,

Thailand, Vietnam, Singapore, Nigeria, etc. other

authorities will follow.

– Reb M & Reb D derived from Reb A in Stevia leaf

extract is approved in the US, Canada, Mexico and a

few other countries. Other authorities and JECFA are

evaluating the products for approval.

– New flavors with Reb M, Reb E, and other glycosides

are approved by FEMA in 2017-18

REGULATORY PROGRESS

In expanding the use of stevia

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NOTES I

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NOTES II