Royal DSM and Cargill will form joint venture company called Avansya. Credit: Koninklijke DSM N.V.

Cargill and DSM have announced their plans to form a new joint venture company called Avansya to produce low-cost, zero-calorie sweeteners for food and beverage manufacturers.

The JV company will produce sweeteners such as steviol glycosides Reb M and Reb D through fermentation, which is a cost-effective solution than direct extraction from stevia leaf.

The establishment of the firm is expected to be finalised in the first quarter of 2019 after regulatory approval and other customary closing conditions.

This firm will make use of a fermentation facility currently under construction. The facility is expected to become operational in summer 2019.

DSM Food Specialties president Patrick Niels said: “One of the most significant transformations in global food and beverage markets is the drive to reduce sugar in people’s diets. This partnership will allow us to bring sustainably produced sugar-reduction solutions based on steviol glycosides to market faster and more effectively at a scale to deliver global impact.

“Both DSM and Cargill are purpose-led companies. We want to positively impact our societies, enable our customers’ brands and businesses to be successful in their markets, and in doing so support our own further growth.”

Cargill Food Segment North America vice president Chris Simons said: “The demand for sugar-reduction solutions is urgent, global and growing fast. While consumers are searching out foods and beverages that help meet their dietary needs or goals, whether for a diabetic diet or simply reducing calories and sugar intake, brand-owners know that great taste can’t be compromised.

“By partnering with DSM, we can further advance a commercialised Reb M & Reb D product line that offers what consumers desire.”

DSM will contribute its R&D expertise in biotechnology, including on-strain development, fermentation processes and customer relationships in specialised market segments. Cargill will bring its application expertise and global commercial footprint in the sweetener market.