GLG Life Tech Corporation Announces Distribution Agreement Signed With Grupo M. Cassab for Brazil and Argentina
May 05 2011 - 5:30AM
GLG Life Tech Corporation (Nasdaq:GLGL) (TSX: GLG) ("GLG" or the
"Company"), the vertically-integrated leader in the agricultural
and commercial development of high quality stevia and all natural
and zero calorie food and beverage products, announces the signing
of a three-year agreement with Grupo M. Cassab ("MCB") for the
marketing and distribution of GLG's stevia extract products in
Brazil and Argentina.
In its 83 year history, M. Cassab has established itself as one
of the largest distributors of fine and specialty chemicals to the
food and pharmaceutical sectors in Brazil. The company owns and
operates specialty ingredient processing plants and distribution
centers throughout Brazil and Argentina and has several strategic
supply relationships with key food and beverage companies within
the region.
Key highlights under the terms of this agreement include:
- Initial term of three years with an option to extend the term
subject to the satisfaction of certain conditions and upon mutual
agreement of the parties.
- Non-exclusivity between the two companies, subject to certain
limitations, including MCB'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 MCB.
- MCB to market GLG's full line of products including the
BlendSure™ product line, Rebpure™, and Rebsweet™ within Brazil and
Argentina.
- Opportunity for future geographic expansion to include
additional countries throughout South America.
Dr. Luke Zhang, Chairman and CEO of GLG stated, "Brazil and
Argentina represent a significant market opportunity for the
expansion of GLG's natural sweetener solutions. These
countries have had a history of using stevia, however, the taste of
the typical lower grade stevia extracts available has impacted the
wider use of the sweetener by the food and beverage
industry. We are very excited to be entering into this
relationship with M. Cassab whose experience, expertise, and track
record of innovation provide foundation and stability for a
long-term collaboration. The combination of GLG's strengths in the
development, production of high grade stevia extracts, and M
Cassab's strength in distribution, formulation and customer service
creates significant potential for the use of stevia-based sweetener
solutions in these markets. We are very pleased with this
agreement and look forward to a successful, valuable partnership
with M. Cassab."
Mr. Victor Cutait, Director and shareholder of M.Cassab stated,
"M.Cassab is very excited with the opportunity of working with
GLG's stevia extracts in Brazil and Argentina. The partnership is
in line with M.Cassab's strategy of bringing high value added
ingredients to our portfolio. We are sure this partnership will
provide Brazilian and Argentinean food and beverage companies a new
way of developing low/zero sugar and low-calorie products, using a
totally natural sweetener, free of off-flavors. GLG's products have
proved to be beyond expectations in terms of sweetness and purity.
We are also confident about GLG's strength on product development
and technology for a successful long term partnership. Our
technical and commercial team will be focused on presenting this
line of products to our customers within the next months and
on."
About GLG Life Tech Corporation
GLG Life Tech Corporation (Nasdaq:GLGL) (TSX:GLG) 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.
The GLG Life Tech Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7994
About Grupo M. Cassab
Founded in 1928 in Brazil, M.Cassab Group is a family company
with 1050 employees. It has 11 branches and 34 Spicy stores
in Brazil, and also branches in USA, Dubai, China and Argentina. It
is currently the second largest chemicals distributor in South
America with 2010 revenues of 322 MM USD. Extremely dynamic,
M.Cassab has a diversified business portfolio, acting in different
market segments. Since its 83 years of existence, the company
has maintained its focus on innovation creating value in several
business units: Animal Nutrition and Technology, Industrial
Chemicals, Fine Chemicals, Human Nutrition, Cosmetics and
Pharmaceutical, Toys, Hotel Administration, Houseware, Electric
Appliances, Spicy stores and Real Estate Investments. Further
information can be found at www.mcassab.com.br.
Forward-looking statements:This press release
contains certain information that may constitute "forward-looking
information" and "forward-looking statements" within the meaning of
applicable Canadian and United States securities laws. All
statements relating to plans, strategies, projections of results of
specific activities or investments, and other statements that are
not descriptions of historical facts may be forward-looking
statements. Forward-looking statements and information are
inherently subject to risks and uncertainties, and actual results
could differ materially from those currently anticipated due to a
number of factors, which include, but are not limited to,
operational risks, the effects of general economic conditions,
changing foreign exchange rates and actions by government
authorities, uncertainties associated with legal proceedings and
negotiations, industry supply levels, competitive pricing pressures
and other risks and uncertainties disclosed in the public documents
filed by the Company with Canadian and United States securities
regulatory authorities. Forward-looking statements and information
may be identified by terms such as "may", "will", "should",
"continue", "expect", "anticipate", "estimate", "believe",
"intend", "plan" or "project", or similar terms or the negatives of
these terms. Although we believe that the expectations reflected in
the forward-looking statements and information are reasonable, we
cannot guarantee future results, levels of activity, performance,
or achievements. The Company's forward-looking statements and
information reflect the beliefs, opinions and projections on the
date the statements are made. The Company assumes no obligation to
update forward-looking information should circumstances or
management's estimates or opinions change, except as required by
law.
CONTACT: Brian Meadows
Chief Financial Officer
GLG Life Tech Corporation
+1 (604) 844-2840
info@glglifetech.com
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