Evolva collaborates with Cargill for EverSweet production
Natural ingredient manufacturer Evolva has partnered with global food company Cargill for the production and commercialisation of EverSweet stevia sweetener.
The new sweetener is expected to be launched next year.
The company claims that its next-generation stevia sweetener has the potential to solve both the stevia taste, and Reb M and Reb D scaleability challenges.
It is reported that EverSweet offers improved sweetness quality by eliminating bitterness or off-note aftertaste that is commonly found in several existing stevia sweeteners.
It will receive up to 30% of the EverSweet business, determined as a function of the strain efficiencies achieved.
Evolva has the right to ask Cargill to support some of Evolva’s early cashflow commitments at a favourable interest rate, but according to the new agreement, Evolva will not be entitled for any further payments from Cargill.
The EverSweet production will initially be carried out at a fermentation facility on Cargill’s Blair, Nebraska, which will be retrofitted for this purpose.
The facility will be majorly operated by Cargill and used for the fermentation of other Evolva products.
Evolva is also planning to build a new bio-processing facility, on adjacent land leased from Cargill, which will be used for producing its products such as nootkatone and resveratrol.
The bio-processing facility is expected to commence operations by 2019.
The company anticipates that the integrated infrastructure would allow it to establish a global hub that will be engaged in the production specialty ingredients.
Evolva CEO Neil Goldsmith said: “EverSweet is coming to market, and given it succeeds as we expect it to, Evolva will see 30% of the upside whilst mitigating some of our initial cash outflows.
“Plus our planned US production hub, working alongside Cargill, provides the foundation for truly scaleable, low-cost, high-quality, production for Evolva’s other key products.”
The new collaboration would allow Evolva to establish a low-cost production facility for its specialty ingredients with minimal risk.
Upon completion, the Blair production facilities are expected to play a major role in reducing the cost-of-goods-sold for Evolva’s products, as well as improve the company’s long-term profitability.
The two facilities are expected to generate more than $50m in annual product revenues for Evolva.
Evolva also intends to invest $60m in the combined fermentation and bio-processing facilities over the next three years.
Evolva recently received an equity commitment of Sfr30m ($29.9m) from Yorkville, which served as a foundation for this investment, and the company intends to secure an additional Sfr30m ($29.9m) in monetary support by end of this year to execute its plans.