More than seven years' hard work are coming to fruition for BioVittoria, the Waikato natural-sweetener company that was forced to abort an attempt at listing on the NZX in 2009 due to a lack of market support.
The Hamilton-based firm - which has developed and patented a fruit-based, calorie-free food
and beverage additive - has entered a five-year strategic partnership with British sugar giant Tate & Lyle.
The London-listed company has also bought a 12 per cent equity stake in the Kiwi firm.
BioVittoria chief executive David Thorrold said he could not disclose the amount Tate & Lyle paid for its share of the company, owing to confidentiality.
He said the partnership opened up huge growth potential for BioVittoria, and its natural additive may soon be used to reduce the sugar content of soft drinks, confectionary and dairy products made by firms such as Nestle, Kraft, Coca-Cola and Pepsi.
Tate & Lyle, which reported sales of £3.5 billion last year, will market BioVittoria's product as Purefruit.
"The global sweetener market is worth more than US$50 billion [$62.5 billion] a year," Thorrold said. "Tate & Lyle have got expertise in formulation and helping customers to develop solutions with ingredients, which we don't have capability in."
He said BioVittoria would focus on sweetener production and supply chain management.
The company manufactures its product from monk fruit, native to Southeast Asia, in its $7 million facility in the southern Chinese city of Guilin. The fruit used by BioVittoria are grown in the surrounding Guangxi region.
Tate & Lyle's president for innovation and commercial development, Karl Kramer, said the company saw BioVittoria as a natural partner.
"BioVittoria is the leader in the innovation and development of this great-tasting natural fruit-based product, and has made significant investment in the monk fruit supply chain and processing to enable us to successfully bring Purefruit to the market," he said.
Wellington-based private equity firm Endeavor Capital is BioVittoria's largest backer, owning about 28 per cent of the company, while its founders Garth Smith, Andrew Rubman, Stephen Lefebvre and Fusheng Lan have holdings.
The New Zealand Venture Investment Fund, ACC and Stephen Tindall's K1W1 fund are also investors.
Endeavor Capital chairman Neville Jordan said BioVittoria's valuation would have gone up as a result of its partnership with Tate & Lyle.
But he did not want to put a figure on what that valuation might be, saying that would be "speculation".
"This is a major international company [Tate & Lyle] and so having them come in provides a very good statement that the company is doing well and has got good products - it bodes well for the future," Jordan said.
BioVittoria attempted a public offering on the NZX in December 2009, but withdrew due to a lack of market interest.
Just three weeks later the company gained US Food and Drug Administration approval to market its product to the global sweetener market - a major step in the firm's progression.
Thorrold said BioVittoria would have another go at a listing - either in New Zealand or overseas - at some point in the future, but not within the next two years.
"We're a venture-funded company, so something that we need to do is provide a liquidity event for our investors," he said.
"Certainly one of the options for that liquidity would be a listing."
An international venture
BIOVITTORIA
* Based in Hamilton and backed by venture capital.
* Has developed a natural, calorie-free sweetener derived from monk fruit grown in southern China.
* The pulp of the fruit is concentrated into a natural additive that is up to 300 times sweeter than sugar and can be used in a range of consumer goods.
* Manufacturing is done in the Chinese city of Guilin.
TATE & LYLE
* Based and listed in London.
* One of the world's largest food ingredient firms, which supplies many of the best-known consumer brands.
* Reported revenue of £3.5 billion last year.
THE DEAL
* Tate & Lyle takes a 12pc equity stake in BioVittoria.
* BioVittoria has granted exclusive global sales and distribution rights for its monk fruit extract to Tate & Lyle, which will market it as Purefruit.
* Tate & Lyle will support the development of Purefruit products through sales, research, marketing, applications and product development.
* BioVittoria will continue management of the monk fruit supply chain, including seedling cultivation, fruit supply and natural processing.
Fusheng Lan, BioVittoria Chinese president, inspects a crop of monk fruit in China. Photo / Supplied
More than seven years' hard work are coming to fruition for BioVittoria, the Waikato natural-sweetener company that was forced to abort an attempt at listing on the NZX in 2009 due to a lack of market support.
The Hamilton-based firm - which has developed and patented a fruit-based, calorie-free food
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