Company to Build New Production Facility in Brazil, Seek Additional Regulatory Approvals in US and Europe
WESTCHESTER, Ill., Apr 22, 2008 (BUSINESS WIRE) -- Moving to broaden its global sweeteners platform for the food and
beverage industries, Corn Products International, Inc. (NYSE:CPO)
today announced the addition of a high-intensity, low-calorie
sweetener derived from the stevia plant to its growing specialty
ingredients portfolio.
Corn Products has entered into a long-term agreement with Morita
Kagaku Kogyo Company Ltd. of Osaka, Japan, for the exclusive license
of its patented stevia strain, manufacturing technology and stevia
production, along with global marketing and distribution rights.
The ingredient, to be marketed under the brand name Enliten(TM),
is a naturally occurring, low-calorie sweetener. Enliten(TM) has a
very high content of Rebaudioside A, the stevia component with the
best taste profile, and a sweetening power ranging from 300 to 400
times that of sugar. Enliten(TM) is designed to provide a clean, sweet
taste in a variety of foods and beverages, unlike the bitter licorice
taste commonly associated with some other forms of stevia.
"Consumers worldwide are looking for a new, low-calorie sweetener
solution that tastes good," said Sam Scott, chairman, president and
chief executive officer of Corn Products International. "Based upon
customer and consumer responses to date, we believe Enliten(TM) meets
this profile very well."
Corn Products intends to achieve supply and quality consistency
through an integrated supply chain, including the use of the patented
plants in the Northern and Southern hemispheres to optimize supply
across growing seasons. Contracted farmers in Brazil began initial
growth of the stevia plant for Corn Products more than a year ago.
"In addition to current access to Morita's production in Japan,
Corn Products is committing about $20 million to begin construction
this year of a dedicated plant in Brazil, with a year-end 2009
completion date, to meet expected growth in customer demand," Scott
said. "Enliten(TM) will be marketed in select Latin American and Asian
countries, where the sweetener is already approved for use in food."
Corn Products will file for regulatory approval of Enliten(TM) in
the US, a process that is expected to take several years to complete,
and is evaluating filings in Europe.
"While the commercialization and production scale-up of
Enliten(TM) is not expected to make a significant contribution to our
revenues in the near-term," Scott said, "this is another initiative we
are taking to lay the groundwork for longer-term, profitable growth."
Scott said Enliten(TM) and the agreement with Morita fits well
with Corn Products' strategy to expand its value-added ingredients
portfolio through multi-geographic alliances, joint ventures and
acquisitions. As an example, he cited the Company's acquisition of a
family of sugar-free, reduced calorie polyol sweeteners in the US and
Brazil in early 2007.
"Morita is a pioneer in the development of several stevia plant
varieties, including patented varieties in the US and Japan," Scott
said. "Our agreement combines Morita's 30 years of experience with
stevia and Rebaudioside A with Corn Products' global operating
footprint and decades of local and regional marketing knowledge and
strong customer partnerships. We are excited about the
commercialization prospects for Enliten(TM) in the years ahead."
About the Company
Corn Products International is one of the world's largest corn
refiners and a major supplier of high-quality food ingredients and
industrial products derived from the wet milling and processing of
corn and other starch-based materials. The Company, headquartered in
Westchester, Ill., is a leading worldwide supplier of dextrose and a
major regional producer of starch, high fructose corn syrup and
glucose. In 2007, Corn Products International reported record net
sales and diluted earnings per share of $3.4 billion and $2.59,
respectively, with operations in 15 countries at 35 plants, including
wholly owned businesses, affiliates and alliances. For more
information, visit www.cornproducts.com.
Forward-Looking Statement
This news release contains or may contain forward-looking
statements within the meaning of Section 27A of the Securities
Exchange Act of 1933 and Section 21E of the Securities Exchange Act of
1934. The Company intends these forward looking statements to be
covered by the safe harbor provisions for such statements. These
statements include, among other things, any predictions regarding the
Company's future financial condition, earnings, revenues, expenses or
other financial items, any statements concerning the Company's
prospects or future operation, including management's plans or
strategies and objectives therefor and any assumptions underlying the
foregoing. These statements can sometimes be identified by the use of
forward looking words such as "may," "will," "should," "anticipate,"
"believe," "plan," "project," "estimate," "expect," "intend,"
"continue," "pro forma," "forecast" or other similar expressions or
the negative thereof. All statements other than statements of
historical facts in this release or referred to in this release are
"forward-looking statements." These statements are subject to certain
inherent risks and uncertainties. Although we believe our expectations
reflected in these forward-looking statements are based on reasonable
assumptions, stockholders are cautioned that no assurance can be given
that our expectations will prove correct. Actual results and
developments may differ materially from the expectations conveyed in
these statements, based on various factors, including fluctuations in
worldwide markets for corn and other commodities, and the associated
risks of hedging against such fluctuations; fluctuations in aggregate
industry supply and market demand; general political, economic,
business, market and weather conditions in the various geographic
regions and countries in which we manufacture and/or sell our
products; fluctuations in the value of local currencies, energy costs
and availability, freight and shipping costs, and changes in
regulatory controls regarding quotas, tariffs, duties, taxes and
income tax rates; operating difficulties; boiler reliability; our
ability to effectively integrate acquired businesses; labor disputes;
genetic and biotechnology issues; changing consumption preferences and
trends; increased competitive and/or customer pressure in the
corn-refining industry; the outbreak or continuation of serious
communicable disease or hostilities including acts of terrorism; and
stock market fluctuation and volatility. Our forward-looking
statements speak only as of the date on which they are made and we do
not undertake any obligation to update any forward-looking statement
to reflect events or circumstances after the date of the statement. If
we do update or correct one or more of these statements, investors and
others should not conclude that we will make additional updates or
corrections. For a further description of these risks, see Risk
Factors included in our Annual Report on Form 10-K for the year ended
December 31, 2007 and subsequent reports on Forms 10-Q or 8-K. This
news release also may contain references to the Company's long term
objectives and goals or targets with respect to certain metrics. These
objectives, goals and targets are used as a motivational and
management tool and are indicative of the Company's long term
aspirations only, and they are not intended to constitute, nor should
they be interpreted as, an estimate, projection, forecast or
prediction of the Company's future performance.
SOURCE:
Corn Products International, Inc.
Corn Products International, Inc.
Investors:
David Prichard, (708) 551-2592
or
Media:
Mark Lindley, (708) 551-2602
