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NovaGreen to produce sugar substitute xylitol for North America


Canada-based refinery NovaGreen has announced plans to produce sugar substitute xylitol over the next two years to supply confectioners in North America.

Xylitol is a sweetener that can be used in sugar-free chewing gum and other foods that is often coupled with health claims, such as “reduced calories” or “reduced risk to tooth decay”.

NovaGreen CEO Barry Farquharson said: “North American food producers look primarily to China or Europe for their xylitol requirements.”

“NovaGreen will provide a domestically available product source that provides a consistently high-quality product for their high-demand functional food solutions.”

According to the company, the global market for xylitol stands at around $400-500m, while the US market is estimated at $159m.

It said the sweetener had seen a compound annual growth rate of nearly 25% since 2002.

NovaGreen claims its production costs are lower than the current large-volume wholesale price of about $4.50/kg Cdn, or $2.05/lb.

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