Tereos is seeking to expand into the natural sweeteners market in Brazil by investing $130 million in a starch factory with further investments possible. The company seeks to tap into the fast expanding market that is evolving and becoming increasingly sophisticated, in the sense that the ingredients being used aim to improve the quality and property of food products resulting in lower use of calories and higher fibre content. The market is thought to be expanding by between 5% to 10%.
The Brazilian investment compliments the company’s sugar production in Brazil and allows it to further expand outside Europe. In 2010 Tereos announced a joint venture with Malaysian Pure Circle to develop products made with natural sweeteners to compete with existing artificial sweeteners saccharin, aspartame and sucralose.
Cargill recently announced an investment in a corn processing mill in Brazil to produce starch and sweeteners. Brazil’s Petrobras concluded a $1.2 billion deal with Tereos in 2010.
Tereos invested in Brazil’s sugar market a decade ago by establishing a joint venture which was followed by acquisitions and gradually increased market share. Tereos is now Brazil’s third largest such group.
Brazil is the world’s largest exporter of sugar and responsible for more than 50% of sugar trades.