GLG Life Tech Corporation has signed an agreement under which it will produce and supply Luo Han Guo (Chinese monk fruit) extract products to one of the global leaders in the food industry.
It expects revenues from this 12-month agreement to be in the range of US$9 million to US$12 million, and notes that achieving these revenues will be dependent on both the market price for Luo Han Guo fruit as well as the company’s conformance to the customer’s product specifications.
While initially encompassing a one-year term corresponding to the 2014 growing season, harvest, and subsequent production, GLG and its customer have the express option to extend the agreement over future years.
GLG previously announced that it had developed a vertically integrated supply chain for the Luo Han Guo business, including agriculture and advanced processing and purification capabilities.
Earlier this year, GLG filed in China a patent for its Luo Han Guo processing technology.
It has also undertaken the Generally Recognized As Safe (GRAS) self-affirmation of its Luo Han Guo extract products and, in May 2014, submitted its notification to the FDA of self-affirmed GRAS status.
GLG says producing Luo Han Guo products is a natural extension of its core stevia product line; these product lines are each naturally sourced sweetener ingredients and Luo Han Guo is often used complementarily.