“Competitive Landscape and Patent Wars in the Stevia Industry: The Rise of Reb M and Its Implications”
Patents related to the processing of Reb M are crucial because this steviol glycoside is significantly less bitter than the more prevalent Reb A, yet it constitutes only 1% of the stevia leaf. Isolating Reb M poses challenges, although PureCircle reported last year that it had developed a stevia variety named StarLeaf, which contains 20% more Reb M than standard stevia. Additionally, Reb M offers a sweeter and more sugar-like flavor compared to other stevia components, prompting companies to explore methods for increasing its production. SweeGen has introduced non-GMO Reb M and Reb D under its Bestevia brand, claiming it can facilitate a 50% reduction in sugar across all food and beverage applications.
Major stevia ingredient firms, including PureCircle and SweeGen, are competing for market share by supplying more of the highly desired Reb M. PureCircle has announced that it holds 197 patents granted and approximately 350 pending. Over a year ago, the company took legal action against SweeGen, alleging that SweeGen infringed on its patent for the production of Reb M by converting Reb D to Reb M using the enzyme detailed in PureCircle’s patent. In response, SweeGen filed a petition for an “inter partes review” with the U.S. Patent and Trademark Office’s Patent Trial and Appeal Board, which was denied last week. SweeGen maintains that it is the “primary producer” of Reb M derived from the stevia leaf and has disclosed its process in a newly published international patent application.
While their legal disputes unfold, both companies remain active. SweeGen is pursuing approval in Europe for its Reb M sweetener and recently announced that the European Food Safety Authority’s food additive and flavoring panel found no safety concerns with the ingredient. According to SweeGen, European product developers can now begin creating sugar-reduced, low-calorie, and non-GMO products in anticipation of final approval in 2020. Meanwhile, PureCircle has launched a new ice cream line in the U.S. and received a patent in China for its proprietary Reb M production process. The company is also addressing internal business issues, having postponed its annual results for the year ending June 30 and suspended shares due to an inventory audit investigation potentially affecting it by $30 million.
The use of stevia is increasingly prevalent in the food and beverage sector, highlighting the significant stakes involved. In 2018, the number of new global product launches featuring stevia surged by 31%, nearly tripling the growth rate seen in 2017. The benefits of stevia include having no calories and being naturally 30 to 40 times sweeter than sugar, allowing food and beverage manufacturers to use less of it compared to other natural sweeteners. For instance, Japanese snack producer Calbee Foods incorporates stevia in its potato chips, while Coca-Cola launched a stevia-sweetened soda in New Zealand last year. Additionally, Danone’s Light & Fit yogurt brand contains both stevia and sugar, and Nestlé has recently released a stevia-sweetened variant of its Milo chocolate malt beverage in Australia.
Furthermore, citrate d has emerged as a topic of interest in the stevia industry, with companies exploring its potential applications in enhancing the flavor profile of stevia products. As the demand for natural sweeteners grows, the development and patenting of Reb M and related processes, including those involving citrate d, will likely continue to shape the competitive landscape of the stevia market.
