PureCircle heralded tie-ups and acquisitions to strengthen its hold on the market for low-calorie sweeteners based on the stevia plant, saying it was "actively" focusing on corporate activity.

The London-listed group said it saw "significant opportunities" through deals to consolidate its position as champion of stevia-based sweeteners, which were used in more than 200 products as of last year, and in a further 60 launched so far in 2010.

The statement follows the decision by Singapore multi-commodities group Olam International to take a 20% stake, and the announcement last month of a joint venture with Imperial Sugar called Natural Sweet Ventures.

"We are pleased with the progress that Natural Sweet Ventures is already making and the opportunities that working with Imperial Sugar are giving rise to," Magomet Malsagov, the PureCircle chief executive, said.

'Tipping point' 

The market for sweeteners refined from stevia, a relative of the sunflower, had "past the tipping point and is moving mainstream", accounting for just over 12% of the US table-top sweeteners' market, Mr Malsagov added

"We are close to aspartame and saccharine levels, after just one year of regulatory clearance."

The company's results for the last six months of 2009, showing earnings falling by 20% to £1.62m, should not be viewed as an indicator of long term trends.

"Our assessment is that stevia will become a mass volume mainstream ingredient, which will require mass volume scaled supply," Mr Malsagov said, while adding that "real, long term sales velocity" would not be apparent until 2011 at the earliest.

Supply diversification 

PureCircle had developed its capacity of its main Reb A sweetener to more than four times the 230 tonnes sold in the half, with supplies of stevia ensured through plans to expand plantations in Africa, South America and South East Asia.

"Our approach is to own a research and development and propagation based subsidiary in each region, and then to work with third party partners to develop secure stable supplies of quality leaf," Mr Malsagov said.

"The group has made strong progress on both fronts."

Historically, the group has relied on stevia sourced from China, where it claims to be the biggest buyer of the leaf, which a share of more than 50%.

"We have used this strong position successfully to negotiate and accelerate a number of key improvements in the China leaf supply market," Mr Malsagov said.

PureCircle shares closed down 2p at 228.5p in London.