GLG Life Tech Corporation, the vertically-integrated leader in the agricultural and commercial development of high quality stevia, announced the signing of a five-year agreement with Grupo Azucarero Mexico (“GAM”) for the marketing and distribution of GLG’s stevia extract products in Mexico.
GAM is the largest private producer of sugar in Mexico, following only the Mexican government. The company owns and operates sugar mills and packaging plants throughout Mexico and specializes in the production, processing and distribution of sugar cane, as well as in the elaboration and sale of sugar-based derivates and products.
Key highlights under the terms of this agreement include:
- Initial term of five years with an option to extend the term for another five years subject to the satisfaction of certain conditions and upon mutual agreement of the parties
- Mutual exclusivity between the two companies, subject to certain limitations, including GAM’s obligation to achieve set GLG product purchases levels, which will be established by mutual agreement year by year
- Marketing support, as well as sales and technical training, to be provided by GLG to GAM
- GAM to market GLG’s full line of products including the BlendSure™ product line, Rebpure™, Rebsweet™ within Mexico
- Opportunity for future collaboration of the two companies in agricultural and industrial processing for GLG stevia extracts
Dr. Luke Zhang, CEO of GLG stated, “We see great market opportunity with leaders such as GAM whose experience, expertise, and leadership provide foundation and stability for long-term collaboration. The synergies between our two companies’ natural sweetener portfolios renders significant potential for the blending of stevia and sugar to create a new market category. We are very pleased with this agreement and look forward to a successful, valuable partnership with GAM.”
CEO of GAM Juan Cortina Gallardo said, “We are very pleased to have found a terrific partner in GLG, one that is going to help us address our customers´ needs in finding an alternative to offer natural, low-calorie products into their end products. We truly believe GLG to have the best alternative with respect to quality and flavor given the extensive research and development into leaf varieties.”
The agreement is effective as of July 15, 2010.
About GLG Life Tech Corporation:
GLG Life Tech Corporation is a global leader in the supply of high purity stevia extracts, an all natural, zero-calorie sweetener used in food and beverages. The Company’s vertically integrated operations cover each step in the stevia supply chain including non-GMO stevia seed breeding, natural propagation, stevia leaf growth and harvest, proprietary extraction and refining, marketing and distribution of finished product. GLG’s advanced technology, extraction technique and premier, high quality product offerings make it a leading producer of high purity, great tasting stevia extracts. For further information, please visit www.glglifetech.com.
About Grupo Azucarero Mexico:
Grupo Azucarero Mexico is a leading sugar producer within the NAFTA market. The company owns and operates four sugarcane mills which produce standard and refined sugar which is suited to serve the industrial market for Mexico and North America. In addition, the company operates packaging facilities for sugar and sugar containing products. In 2008, the company sold 51% of the Ingenio Benito Juarez to Grupo Incauca, Colombia’s leader of sugar and ethanol production. The company is actively diversifying its operations into sugar cane and energy production. For further information, please visit www.gamsa.com.mx.
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