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THE POTENTIAL INTRODUCTION OF 

Stevia rebaudiana (Bertoni) AS AN ALTERNATIVE 

SWEETENER IN NEW ZEALAND 

A thesis presented in partial fulfilment 
of the requirements for the degree of 

Master in Business Studies 

lil 

Agribusiness 

Institute of Food, Nutrition and Human Health 

Massey University 
Palmerston North, New Zealand 

KARIN TIMCKE HOLST 

2003 



TABLE OF CONTENTS 

TABLE OF CONTENTS i 
---------------------~ 

LIST OF TABLES ____________________ v 

LIST OF FIGURES vii 
~---------------------~ 

ABSTRACT viii 

ACKNOWLEDGEMENTS ix 

CHAPTER ONE INTRODUCTION 1 
~----------------

1- l NT ROD UC TIO N 1 

1.1. Background ________________________ 1 

1.2. Introduction to the Research Problem 2 

1.3. Research Problem 2 

1.4. Problem Statement 3 

1.5. Research Purpose, Hypothesis and Objectives 3 
1.5.1. Aim 3 
1.5.2. Hypothesis 3 
1.5.3. Research Objectives 3 

1.6. Importance of the Research 4 

1. 7. Preparation, Collection and Analysis Phases 6 
1.7.1. Methodology 6 

1. 7.1.1. Case Selection 7 
1.7.1.2. Data Collection and Analysis 7 

1.8. Limitations 9 

1.9. Key assumptions 9 

1.10. Outline of the study 10 

CHAPTER TWO LITERATURE REVIEW 11 

2-LITERATURE REVIEW 11 

2.1. Introduction 11 
~----------------------~ 

2.2. Background 12 

2.3. Plant physiology and chemistry 13 

2.4. Uses and Properties 13 
2.4.1. Stability for cooking and processing 14 
2.4.2. Medicinal properties 15 

2.4.2.1. Hypoglycaemic action: 15 
2.4.2.2. Cardiovascular Action: 15 
2.4.2.3. Anti-microbial Action: 15 
2.4.2.4. Digestive Tonic Action: 15 
2.4.2.5. Skin Problems: 16 

2.4.3. Others 16 



11 

2.5. Production 17 
~~~~~~~~~~~~~~~~~~~~~~~~~~~ 

2.5.1. Agronomy 17 
2.5.2. Commercial Growing 18 

2.6. Processing and Manufacturing 18 
2.6.1. Extraction methods 19 
2.6.2. Types of Stevia Products 20 

2.7. World situation 22 
2.7.1. Situation in Japan 24 
2.7.2. Situation in Paraguay 26 
2.7.3. Regulation in the United States 26 
2.7.4. Regulation in the European Union 27 
2.7.5. The Food Standards Australia New Zealand (FSANZ) Position on Stevia 27 
2. 7.6. Safety of Stevia sweeteners 28 

2. 7.6.1. Artificial sweeteners 29 
2.7.6.2. Stevia's safety controversies 30 

2.7.7. Consumers opinions on Stevia in other countries 30 
2.7.7.1. Sweetness 30 
2.7.7.2. Flavour and aftertaste 32 
2.7.7.3. Texture and appearance 32 

2.8. Stevia in New Zealand 33 
2.8.1. Situation 34 
2.8.2. Benefits to New Zealand 37 

2.9. Product Development Process 38 
2.9.1. Paraguayan Product Development Process 40 
2.9.2. Product Development Approaches 41 
2.9.3. Product Development Process for New Zealand 44 

2.10. Conclusion 48 

CHAPTER THREE METHODOLOGY 50 
~~~~~~~~~~~~~~~~-

3- RESEARCH METHODOLOGY AND TECHNIQUES 50 

3.1. Introduction 50 

3.2. Selection of Research Strategy 50 

3.3. Case Study Design 52 
3.3.1. Multiple Case-Studies 54 

3.3.1.1. Definition and Design Phase 55 
3.3.1.2. Preparation, Collection and Analysis phase 55 
3.3.1.3. Analyse and conclude 56 

3.4. Case Selection 56 

3.5. Data Collection 59 
3.5.1. Collection Strategies 60 
3.5.2. Documentation or Literature Review: 62 
3.5.3. Qualitative Interviews 63 

3.5.3.1. Focus Groups 64 
3.5.3.2. One-on-one Interviews 72 

3.5.4. Surveys 72 

3.6. Data Analysis 73 
3.6.1. Description: 75 
3.6.2. Classification: 76 
3.6.3. Connection: 78 



111 

3.6.4. Within-Case analysis ______________________ 79 
3.6.5. Cross-Case analysis 79 
3.6.6. Quantitative Data Analysis 80 

CHAPTER FOUR RESULTS AND DISCUSSION _________ 81 

4 -RESULTS AND DISCUSSION 81 

4.1. Introduction __________________________ 81 

4.2. Results of the General Public Focus Group 85 
4.2.1. Potential uses of Stevia 86 

1. Sensory Evaluation 86 
2. Market Issues 89 
3. Health and Research Issues 93 
4. Convenience 94 

4.2.2. Discussion 96 

4.3. Results from the Herb Experts Focus Group _____________ 101 
4.3.1. Potential uses of Stevia I 03 

1. Sensory Evaluation I 03 
2. Market Issues I 05 
3. Health and Research Issues 108 
4. Convenience 110 

4.3.2. Discussion 114 

4.4. Results of the Diabetics Focus Group ________________ 119 
4.4.1. Potential uses of Stevia 120 

1. Sensory Evaluation 120 
2. Market Issues 122 
3. Health and Research Issues 124 
4. Convenience 126 

4.4.2. Discussion 128 

4.5. Results from the Maori Focus Group ________________ 134 
4.5.1. Potential uses ofStevia 135 

1. Sensory Evaluation 135 
2. Market Issues 136 
3. Health and Research Issues 138 
4. Convenience 139 

4.5.2. Discussion 141 

4.6. Cross-Case Data Analysis and Discussion _______________ 147 
4.6.1. General information about participants 147 
4.6.2. Participants' awareness ofStevia 152 
4.6.3. Attractions participants found on Stevia 153 
4.6.4. Opinions on replacing current sweeteners with Stevia: 154 
4.6.5. Potential use ofStevia amongst the four groups 159 

1. Sensory Evaluation 159 
2. Market Issues 162 
3. Health and Research Issues 167 
4. Convenience 168 

CHAPTER FIVE CONCLUSIONS AND RECOMMENDATIONS 170 -----
5 - CONCLUSIONS AND RECOMMENDATIONS 170 

5.1. Introduction 170 -------------------------
5. 2. Research Conclusions 172 

5 .2.1. Objective One: 172 



iv 

5.2.2. Objective Two: ________________________ 176 
5.2.3. Objective Three: 176 
5.2.4. Objective Four: 177 
5.2.5. Objective Five: 177 

5.3. Implications of the findings 177 
5.3.1. Stevia and Stevia-based products commercial use: 178 
5.3.2. Stevia and Stevia-based products implications for Health and Research Areas: 178 
5.3.3. Stevia and Stevia based potential implications for New Zealand food industry: 179 
5.3.4. Stevia as a potential crop for growers: 179 
5.3.5. Recommendations on Stevia PDP for New Zealand food industries: 180 

5.4. Evaluation of the methodology 181 
5 .4.1. Case Selection 181 
5.4.2. Data Collection 182 

5.5. Key Findings ________________________ 183 

5.6. Future Research and Recommendations 183 
5.6.1. Thesis - related research: 183 
5.6.2. Safety and medicinal research: 185 
5.6.3. Industrial research: 185 
5.6.4. Agronomical research in New Zealand: 186 

REFERENCES~~~~~~~~~~~~~~~~~~~-187 

APPENDIX 1 200 

APPENDIX 2 202 

APPENDIX 3 204 

APPENDIX 4 211 

APPENDIX 5 221 

APPENDIX 6 227 

APPENDIX 7 233 

APPENDIX 8 235 

APPENDIX 9 237 

APPENDIX 10 239 

APPENDIX 11 241 



v 

LIST OF TABLES 

Table 2.1. Food and Culinary Uses _________________ 14 

Table 2.2. Methods of extraction of steviol glycosides 19 

Table 2.3. Some Countries Where Stevia is Grown and Researched 23 

Table 2.4. Current Status ofStevia 26 

Table 2.5. Total people with diabetes in Argentina, Brazil and Paraguay 35 

Table 2.6. Modelled 1996 (diagnosed) diabetes counts 36 

Table 2. 7. Forecast 2011 counts 37 

Table 2.8. Different Product Development Process Approaches 42 

Table 2.9. New Product Development Process, classified according to three phases 43 

Table 2.10. Design of a generalised PDP 43 

Table 2.11. Design of the PDP of Stevia and/or Stevia-based products into New 
Zealand 44 

Table 3.1. Conditions to select an appropriate Research Strategy 51 

Table 3.2. Idealised viewpoints of the quantitative and qualitative research strategies 
60 -------------------------------

Table 3.3. Advantages and disadvantages when using focus groups as a data 
collection method 66 

Table 3.4. Two approaches of Focus Group procedure 70 

Table 3.5. Stevia Focus Group session details 71 

Table 3.6. Example of part of an interview transcription 76 

Table 4.1. New products listed by the participants in the General Public focus group 
92 -------------------------------

Table 4.2. General context of the general public's attitude towards sweeteners __ 96 

Table 4.3. New products listed by the participants of the Herb Experts focus group107 

Table 4.4. General context of the herb experts' attitude towards sweeteners __ 114 

Table 4.5. New products listed by the participants of the Diabetics focus group_ 123 

Table 4.6. General context of the diabetics' attitude towards sweeteners 128 

Table 4. 7. General context of the Maori attitude towards sweeteners 141 

Table 4.8. Information from the participants survey, gender distribution 147 

Table 4.9. Information from participants, Age group distribution 148 

Table 4.10. Information from participants, Ethnic Group distribution 148 



vi 

Table 4.11. Information on the opinion about "sweetening" habits ______ 150 

Table 4.12. Information about kind of sweeteners used 151 

Table 4.13. Information about participants' sweetening habits and about opinion on 
Stevia 151 

Table 4.14. Responses about the issues that attracted participants to Stevia 154 

Table 4.15. Opinions on the food and beverages prepared with Stevia 155 

Table 4.16: Responses of the four groups about the possibilities of sweetening their 
food and beverages with Stevia 15 6 

Table 4.17. Comparison of the four groups and their interests on the Information 
issue: 162 

Table 4.18. New products cited by the participants of all four groups: ____ 165 

Table 4.19. Responses of all groups about their sugar substitute consumption_ 167 

Table A.I. Definition table of the General Public focus group 204 

Table A.2. Definition table of the Herb Experstsfocus group _______ 211 

Table A.3. Definition table of the Diabetics focus group 221 

Table A.4. Definition table of the Maori focus group 227 

Table A.5. Gender distribution of the groups 241 

Table A.6. Age distribution of the groups 241 

Table A. 7. Ethnicity distribution of the groups 241 

Table A.8. Sweetening habits of all groups 242 

Table A.9. Sweeteners used by the participants of the groups 242 



Vll 

LIST OF FIGURES 

Figure 2.1. Applications and Research Achievements of Stevia Extract Liquid __ 25 

Figure 3.1. Multiple Case Study Method 55 

Figure 3.2. Combination of qualitative and quantitative methods 62 

Figure 3.3. The ladder of analytical abstraction _____________ 74 

Figure 3.4. - QDA as a circular process 75 

Figure 4.1. Potential uses of Stevia - classification of the categories and subcategories 84 

Figure 4.2. Venn Diagram of participants' grouping according to three 
characteristics. 149 

Figure 4.3. Venn Diagram of participants' grouping according to three 
characteristics. 158 

Figure 4.4. Answers given to the different issues concerning the Sensory Evaluation 159 

Figure 4.5. Marketing issues considered to be important when buying a sweetener 164 

Figure 4. 6. Comparison of Stevia with the two main commercial sweeteners used in 
New Zealand, according to the participants; responses: 166 

Figure A.I. General Public's Sensory Evaluation chart 233 

Figure A.2. General Public's Market Issues chart ____________ 233 

Figure A.3. General Public's Health and Research Issues chart 234 

Figure A.4. General Public's Convenience chart 234 

Figure A.5. Herb Experts' Sensory Evaluation chart 235 

Figure A.6. Herb Experts' Market Issues chart 235 

Figure A. 7. Herb Experts' Health and Research Issues chart 235 

Figure A. 7. Herb Experts' Health and Research Issues chart 236 

Figure A.8. Herb Experts' Convenience chart 236 

Figure A. 9. Diabetics' Sensory Evaluation chart 23 7 

Figure A.JO. Diabetics' Market Issues chart 237 

Figure A.JI. Diabetics' Health and Research Issues chart 238 

Figure A.J2. Diabetics' Convenience chart 238 

Figure A.J3. Maori's Sensory Evaluation chart 239 

Figure A.J4. Maori's Market Issues chart 239 

Figure A.15. Maori's Health and Research Issues chart 240 

Figure A.J6. Maori's Convenience chart 240 



viii 

ABSTRACT 

This thesis reviews the literature on a naturally occurring, non caloric sweetener, Stevia 
rebaudiana (Bertoni), a plant native to Paraguay, and analyses the potential for the introduction 
of Stevia and Stevia-based products as an alternative sweetener for selected groups of 
consumers in New Zealand. Stevia has been proved by a considerable amount of research to be 
a safe sweetener for people with diabetes, hyperglycaemia, digestive, obesity and skin problems. 

In other countries of the world including Japan, China, Israel and Germany, Stevia's unique 
combination of sweetness and health benefits has caught the attention of consumers. However, 
Stevia remains largely unknown in New Zealand. In terms of the use and understanding of 
Stevia and its commercial application, Japan is the world's most advanced country. The 
situation of Stevia in Japan, where artificial sweeteners are banned, is significantly different 
from its situation in New Zealand. The Food Standards Authority for Australia and New 
Zealand states that while Stevia, as a plant, is a permitted sweetener, Stevia extracts are not 
permitted. This ruling allows the full use and promotion of artificial sweeteners that are banned 
in Japan while restricting the use of Stevia, which has no restrictions in Japan. 

Two major health problems in New Zealand are diabetes and obesity (especially amongst Maori 
and Pacific Islanders), for which the introduction of Stevia and Stevia-based products in New 
Zealand as a substitute for other sweeteners has the potential to provide significant benefits. 

Responses of four groups (general public, herb experts, diabetics and Maori - the latter ones 
being the target groups) to Stevia were studied through a series of consumer focus group 
meetings. Most participants showed interest in using Stevia as a replacement for their current 
sweeteners. However, participants suggested that additional information and research are 
required for its wider use. According to the results of this study, participants suggested that 
Stevia could be used as: 

~ A plant to be grown in home gardens: having a Stevia plant allows growers to have a 
natural sweetener; 

~ An alternative sweetener in the form of processed Stevia products, and 
~ An ingredient in ready-to-eat products. 

The main findings ofthis research are: 

~ There is a potential market for Stevia in New Zealand; 
~ FSANZ regulations restricting the use of Stevia form an obstacle to its 

commercialisation in New Zealand; 
~ Participants of the focus groups prefer the powder form over other types of Stevia; and 
~ Food industries could use Stevia, assuming regulatory approval, as an ingredient in their 

products. 

For the potential introduction of Stevia in New Zealand a Product Development Process (PDP) 
is described. A number of areas for business activities and research into Stevia rebaudiana 
(Bertoni) are suggested. 

Keywords: Stevia, Stevia-based products, sweetener, natural, diabetes, obesity, Maori, artificial 
sweeteners, potential introduction, Product Development Process. 



lX 

ACKNOWLEDGEMENTS 

I would like to express my deep gratitude to the New Zealand Official Development 
Assistance (NZODA) entity, administered by the Ministry of Foreign Affairs and Trade 
that granted us this marvellous opportunity of coming to this wonderful country, New 
Zealand. We have spent amazing moments in New Zealand, the studying experience in 
these two and a half years is of great value. But the greatest and most valuable 
achievement of all is our little "kiwi" daughter, Annika. 

This thesis was completed with much assistance, academic supervision, guidance and 
encouragement from my supervisors, Prof William Bailey from the Institute of Food, 
Nutrition and Human Health and Ewen Cameron from the Department of Agriculture & 
Horticulture Systems and Management. I am also indebted to my friend and guide, Ms. 
Lidia Norina, for her encouragement to undertake this research and for all her valued 
advice and help throughout it. A special thanks to Denise Stewart for her helpfulness 
and friendliness. 

The financial support received from the Product Development Trust and from the 
College of Business Postgraduate Research Fund were much appreciated. I would like 
to thank Christine Ramsay for her assistance in these matters. 

Thanks to all the participants who assisted enthusiastically in the focus group sessions. I 
greatly appreciated the valuable time they gave, sharing their opinions and ideas, to be 
part of this study. Many thanks to the group of people in Paraguay who kindly provided 
relevant and confidential information about Stevia: Mr. Juan Carlos Fischer, Mr. 
Alberto Sallustro, Dr. Juan Carlos Zanotti Cavazzoni, Mr. Crisostomo Gaona, Ing. 
Edgar Alvarez, Dra. Graciela Cabrera, Ing. Diego Gonzalez, FUP ADI your help is 
gratefully acknowledged. Jacqui Bennett from Health and Herbs in Auckland kindly 
provided some information which is gratefully acknowledged. 

Many thanks to a large group of lecturers who improved my academic formation 
(especially during the first year at Massey): Nicola Shadbolt, John Gardner, Terry Kelly, 
David Gray, Robyn Walker and Janet Reid. 

The staff from the International Students Office offered friendly support from the 
beginning through to the end of our stay. Special thanks to Silvia Hooker, Sue Flynn, 
Dianne Reilly and former staff member Charles Chua. 

Kevin, Dean, Ai Lih, David, Adam and Nigel helped with all computing-related support, 
and their assistance is deeply appreciated. Thanks to the Plant Growth Unit employees 
for taking good care of the Stevia plants. 

During my stay at Massey University I met many people, some of whom became true 
friends and provided a highly diversified and pleasant working and leisure environment. 
Thanks to Viviana and Rafael, Paulina and Christian, Patty and Juan, Ignacio and Anita, 



x 

Fernanda and Kevin, Elisa and Matias, Ana Paula, Melissa E., Dora D., Entin D., 
Mirtha G., Alejandra A. amongst others. To my kiwi friends Kim A., Glenn T., Gareth 
H., thanks for all the kiwi tips. Special thanks to Eloise and Bevan for their friendship 
and kindliness, and to all my volleyball mates, it was great meeting you! Heartfelt 
thanks to Daniela and Stuart, Maria and Hector, and Patricia and Jose, your support and 
friendship will never be forgotten! Many thanks to my family and friends in Paraguay, 
for supporting and encouraging me not only throughout this period but also in many 
other times. 

Special thanks to Dr. Ruben Hug de Belmont, who helped me with gathering 
information and contacting people; and to my brother Walter who helped me with good 
tips for computing-related problems. 

To my dear parents, THANK YOU, for being the best teachers in my life, for your 
unconditional love, support and encouragement, and for the great example you are still 
giving me. 

I could not have finished this thesis without the support in all areas of my life from my 
dear husband Carlos, who unconditionally stood by my side all the time encouraging, 
supporting, helping, cheering me up when I was falling, and telling me "If you can't 
anymore ... just a little bit more". His commitment, good mood, happiness, strength, and 
love make me admire him every day more and more. I believe I could not have found a 
better husband than him, and Annika could not have a better father! Thank you to you 
two who made my student life so much better and nicer. 

To Almighty God for all the gifts He gives me every day, and for allowing me to have 
had this great experience in New Zealand with my family, my deepest and most sincere 
Thank You! 



CHAPTER ONE Introduction 

I CHAPTER ONE INTRODUCTION 
~(;; 

1- INTRODUCTION 

1.1. Background 

Stevia rebaudiana (Bertoni) is a plant, native to South America, which contains the 

glycosides stevioside, rebaudioside and dulcoside (Glycemic Research Institute, 2000). 

Glycosides are natural alternatives to sugar and other artificial sweeteners that are not 

metabolised in the body, therefore they are eliminated with no caloric absorption 

(Elkins, 1997; Cardozo, 1980). 

Stevioside, estimated to be 250 to 300 times sweeter than cane sugar (Mowrey, 1992), 

has a number of properties that make it more attractive than some of the synthetic 

products available. It is natural, has no calories (Mowrey, 1992) and does not affect 

blood sugar levels. For some 'at risk' groups, such as diabetics or those with 

hypoglycaemia (Richard, 1999), Stevia products allow these people to 'have their cake 

and eat it too' . Its non-caloric sweetening properties, together with the fact that 

Stevioside is heat stable to 200°C (Glycemic Research Institute, 2000), have resulted in 

the large-scale commercial development of this crop in a number of countries, including 

Brazil, Japan, Germany, Israel, China, Korea and Canada. 

The use of Stevioside in extracted processed form is expanding (Bonvie et al., 1997). 

However, in terms of the use and understanding of Stevia and its application in food and 

pharmaceutical industries, Japan is by far the most advanced country (Brandle, 1998). 

Artificial sweeteners, such as aspartame and saccharin, are banned in the Japanese 

market. Consequently, Stevia holds 41 % of the sweetener market there (Bonvie, L., 

Bonvie, B., & Gates, D., 1997a). In Japan, Stevia-based products are used as tabletop 

sweeteners, in soft drinks, baked goods, pickles, fruit juices, tobacco products, 

confectionery, jams and jellies, candies, yoghurts, pastries, chewing gum, sherbets, and 

other food products. 



CHAPTER ONE 2 Introduction 

1.2. Introduction to the Research Problem 

With diabetes considered a worsening world epidemic, it is important that solutions to 

this problem be found (International Diabetes Federation, 2003). One of the causes for 

the increasing rates of diabetes is said to be "obesity'' (NZ Ministry of Health, 2002). 

One of the suggested solutions to these twin problems is the use of Stevia as a substitute 

for currently used sweeteners and a resulting reduction in the intake of sugar. 

An epidemic of Type II diabetes is occurnng in New Zealand, mainly driven "by 

demographic trends and the increasing prevalence of overweight and obesity, mainly 

affecting Maori and Pacific Islanders (NZ Ministry of Health, 2002). Elsewhere in the 

world, Stevia is being sold, approved and promoted as a sweetener for diabetics in 

Argentina, Brazil and Paraguay (J.C. Fischer, 26 December, 2002, personal 

communication). The incidence of diabetes in these three countries is presented in 

Chapter Two - Section 2.8.1. of this study. However, in New Zealand Stevia is not 

accepted as a legal sweetener, according to the FSANZ (Food Standards - Australia, 

New Zealand). 

Considering the high rates of diabetes and obesity among select groups of New 

Zealanders, and the fact that the use of Stevia is encouraged among diabetics in South 

America, an alternative solution to these health issues could be the introduction of 

Stevia as a sweetener in New Zealand. However, a significant challenge is that Stevia is 

relatively unknown in New Zealand. To evaluate the reaction of New Zealanders to 

Stevia, the researcher investigated New Zealander's taste preferences and opinions and 

their likely use of Stevia as a replacement sweetener. 

1.3. Research Problem 

In contrast to other parts of the world where Stevia has been used for more than 30 

years, it is relatively unknown in New Zealand. It is not known if Stevia and Stevia­

based products will be accepted and used as a replacement for other sweeteners in New 

Zealand. Their introduction as a substitute for other sweeteners (artificial and traditional) 

could provide significant benefits to New Zealand society. As research is conducted in 



CHAPTER ONE 3 Introduction 

other countries, the results indicate it is safe for diabetes, hyperglycaemia, digestive 

problems, obesity, other weight problems and skin problems (Johnson, 1990; Mowrey, 

1992). The research suggests that not only diabetics and obese people might benefit 

from Stevia's introduction as a sweetener in New Zealand but so might other groups. 

1.4. Problem Statement 

Unlike other industrialised countries, Stevia is unknown in New Zealand. In view of the 

potential medical benefits of Stevia, the introduction of Stevia into New Zealand could 

have positive medical outcomes. However, the reaction of New Zealanders to this new 

sweetener is unknown. In view of this, the possibility exists that New Zealand 

consumers, despite its alleged health benefits, might not accept Stevia. 

1.5. Research Purpose, Hypothesis and Objectives 

This Chapter presents the Aim, Hypothesis, and Objectives; the importance of the 

research, the methodology; the limitations; and the key assumptions. Finally, the layout 

of the thesis is descnbed. 

1.5.1. Aim 

Determine if the Stevia plant and/or Stevia-based products may be accepted and used as 

a sweetener by selected groups of New Zealanders. 

1.5.2. Hypothesis 

Selected consumer groups of New Zealanders are prepared to accept and use Stevia 

and/or Stevia-based products. 

1.5.3. Research Objectives 

1. Determine if selected groups of New Zealanders exhibit a willingness to accept 

Stevia and/or Stevia-based products as an alternative sweetener; 

2. Determine if selected groups of New Zealanders are willing to replace their 

current sweeteners with Stevia and/or Stevia-based products; 



CHAPTER ONE 4 Introduction 

3. Determine consumer preferences for different types of Stevia and/or Stevia­

based products amongst selected consumer groups in New Zealand; 

4. Describe a possible Product Development Process for Stevia and Stevia-based 

products; 

5. Compare the results of the study to the literature findings. 

1.6. Importance of the Research 

There is no reported scientific research on Stevia's production, industrialisation, 

consumption or use in New Zealand. This research focuses on the potential introduction 

of Stevia into New Zealand. The adoption of Stevia into their eating habits by New 

Zealanders has the potential to benefit New Zealand society. The first benefit identified 

is that it may be a replacement for artificial sweeteners without the side effects of the 

latter (Weihrauch, Diehl & Bohlen, 2001 ; Midmore & Rank, 2002). Second, diabetics 

can use Stevia as a safe sweetener. Third, since Stevia has no calories and is natural, it 

might help New Zealanders improve their quality of life by eating healthier through the 

reduction of their sugar intake. As a consequence of reducing sugar intake, Stevia may 

help to decrease the high obesity rates and, therefore, the diabetes rates. These benefits 

may result in economic benefits by reducing the health costs associated with diabetes 

and obesity. 

In addition to the above health and social benefits possible through the use of Stevia as a 

replacement sweetener, other reasons for its introduction into New Zealand include: 

introducing it as an alternative crop for growers and specifically for organic growers; 

manufacturing Stevia-based products for domestic use or for export to established 

markets (China, Japan); or, producing Stevia containing products (e.g. dairy products) 

for export to the above countries. Another consideration that could enhance the 

introduction and promotion of Stevia products into New Zealand is the increasing 

number of New Zealand consumers who are diet conscious. 

The objective of the focus group sessions of selected New Zealand consumers was to 

determine the participants' opinions about Stevia; to determine members' likes and 



CHAPTER ONE 5 Introduction 

dislikes; and determine the advantages and disadvantages of Stevia found by the 

participants by comparing Stevia with their current sweeteners. The final objective was 

to determine if focus group members would replace their current sweeteners with Stevia. 

The groups selected for these meetings were: 

1. General Public: to have the opinions of different people that were selected in a 

semi-random way. 

2. Members of the Manawatu Herb Society ('plant experts'): The researcher 

determined it would be useful to learn the opinions of people knowledgeable 

concerning herbs and their production in New Zealand. 

3. Diabetics (most of them were members of the Manawatu Diabetes Society): The 

literature review suggests this is one of the main markets for Stevia. The opinion 

and attitudes of this group of people was very important for this research. 

4. Maori: This group is the other main market for Stevia because of the high rate of 

diabetes and obesity among Maori. 

The researcher also proposed a Product Development Process (PDP) that could be 

followed in order to ensure a positive introduction of Stevia into New Zealand. The use 

of a PDP that is systematic and well planned allows a product to be developed 

completely, ensuring no details are overlooked (Perkins, 1997). If a PDP is followed 

for the introduction of Stevia as a sweetener in New Zealand, it is believed the 

probabilities of product failure will be reduced. In order to describe a PDP to introduce 

Stevia into New Zealand, a visit to Paraguay (the country of origin of Stevia) was 

undertaken. 

This research has supplied information on: 

1) Consumer preferences on Stevia characteristics, such as sweetness, aftertaste, 

texture, etc.; 

2) Consumer opinions on marketing issues: pnce, product characteristics and 

product availability, etc.; 

3) Consumer concerns about health and research issues (especially diabetes and 

obesity); 



CHAPTER ONE 6 Introduction 

4) Consumer interest on the Stevia plant growmg issues, application and form 

preferences of Stevia and Stevia-based products; 

5) The advantages and disadvantages consumers identify for artificial sweeteners 

and sugar compared to Stevia; and 

6) The willingness of participants to replace their current sweeteners with Stevia 

(totally and partially). 

The researcher also summarised different forms Stevia may take in New Zealand (as a 

sweetener, as an ingredient for prepared products, as a plant grown in home gardens, 

etc.). 

1. 7. Preparation, Collection and Analysis Phases 

The researcher's main goal in this study, is to find out: 

I) How well known Stevia is amongst New Zealanders? 

2) What the reactions and opinions of some selected groups of New Zealanders are 

about Stevia and Stevia-based products? 

3) If these selected groups of New Zealanders are willing to replace their current 

sweeteners with Stevia totally or partially? 

4) How a possible PDP for Stevia in New Zealand could be described? 

Particular attention in this research was given to two target groups: diabetics and Maori. 

Increased attention was given to these two groups because it is these groups that could 

most benefit from the introduction of Stevia into New Zealand. However, two other 

groups (the general public and herb experts) were included to assure a broader 

consumer perspective on the potential acceptance of the Stevia plant and Stevia-based 

products. 

1. 7.1. Methodology 

In this section the methodology used in this research is presented. 



CHAPTER ONE 7 Introduction 

1.7.1.1. Case Selection 

For this study the researcher used the Multiple Case Studies research strategy. Two 

target groups (diabetics and Maori) were the primary groups. A 'general public group' 

and a 'herb experts group' were included in order to have a broader sample selection to 

obtain data from the additional groups about their potential acceptance of the Stevia and 

the Stevia-processed products. 

1.7.1.2. Data Collection and Analysis 

Data collected consisted of secondary data (published data from articles, books, web­

sites, etc.); and primary data collected from focus groups, semi-structured interviews, 

and questionnaires. The first part of the research focused on the collection and review of 

literature. The objectives ofthis activity were to: 

1) Find guidance for the research; 

2) Find out how other authors approached similar studies; and 

3) Corroborate information from different sources. 

Data for this research was obtained in a mixed form (qualitative and quantitative data). 

However, the main focus of the project was qualitative consumer research. This format 

investigates a wide range of issues and obtains detailed information about consumer 

attitudes, opinions and reactions. 

The focus group strategy was selected because it is used for "particular purposes and 

specific situations - for exploring the way particular groups of individuals think and talk 

about a phenomenon, for generating ideas and for generating diagnostic information" 

(Stewart & Shamdasani, 1990:140). 

For focus groups and one-on-one interviews, a semi-structured interview was used. 

Tape recording and transcription of the focus groups sessions were done to ensure 

accuracy. 

To address issues that were not covered in the qualitative method, quantitative methods 

were selected, such as demographic information, sweetening habits, buying behaviour, 

etc., (to help to get specific consumers' characteristics). 



CHAPTER ONE 8 Introduction 

The data analysis includes a "within-case" and an "across-case" analysis as suggested 

by Yin (I 994). In the within-case analysis the collected data was converted into a case 

report. In the cross-case analysis the results from each case were compared and 

contrasted. In addition, Dey's (1993) qualitative data analysis method was used to 

analyse the results. The infonnation analyzed quantitatively descnbed: 

)ii- The characteristics of the respondents, and 

)ii- The description of the results of the investigatory analysis. 

To structure the information, section headings were used in the focus groups' transcripts 

and questionnaires. The analysis of data in the focus group sessions, is described under 

four main areas. These are: 

1. Sensory Evaluation: Jn this research, the sensory evaluation relates to the careful 

examination and judgement of the transmission of impulses from sense organs to 

nerve centres, especially the taste and touching senses. The subcategories that 

are discussed under this heading are: 

)ii- Sweetness, 

)ii- Flavour, 

)ii- Aftertaste, 

)ii- Quantity, 

)ii- Texture, and 

)ii- Appearance. 

2. Market Issues: In this research three marketing mix categories were presented: 

price, place and product. The fourth (promotion) was not discussed, as it is not 

related to the current research. The subcategories for the Market Issues are: 

)ii- Information, 

)ii- Marketing, 

)ii- New products, and 

)ii- Competition. 



CHAPTER ONE 9 Introduction 

3. Health and Research Issues: These topics are related to the soundness of body or 

mind; freedom from disease or abnormality; and about scholarly or scientific 

investigation or inquiry. The subcategories identified under this category are: 

);> Safety, 

);> Health, and 

);> Research. 

4. Convenience: Convenience is defined as the quality of being suitable to one's 

comfort, purposes, or needs. The subcategories under this issue are: 

);> Growing, 

);> Application, and 

);> Form. 

1.8. Limitations 

The researcher identified some limitations: 

);> This was the first research on Stevia in New Zealand; 

);> The use of a small sample (quantity of participants and quantity of groups) limits 

the generalisation of the results. 

);> Controversial health, safety and research opinions (refer to the FDA position in 

section 2.7.3. of this thesis) 

1.9. Key assumptions 

As the researcher used information from secondary sources, there are many assumptions 

in this study. The most important ones are listed below: 

);> Stevia and Stevia-processed products are not well known in New Zealand; 

);> Stevia as a sweetener is considered safe; 

);> Stevia is most beneficial in New Zealand for people with obesity problems and 

diabetes (particularly Maori and Pacific Islanders); 

);> Obesity and diabetes rates in New Zealand may be controlled with the use of 

Stevia; 



CHAPTER ONE IO Introduction 

» The associated economic costs of the treatment of diabetes and obesity may 

decrease with the consumption ofStevia; 

» A well-developed PDP could guarantee the success of the introduction of Stevia 

as a sweetener into New Zealand. 

1.10. Outline of the study 

This thesis is presented in five chapters. The justification and purpose for the study has 

been set out in this chapter together with the background and framework. 

Chapter Two provides a summary of the review of literature on Stevia's situation 

around the world and in New Zealand. The literature on the Product Development 

Process is also reviewed. A proposal of a specific Product Development Process for 

introducing Stevia in New Zealand is given in this Chapter. 

Chapter Three describes the research techniques and methods used to investigate the 

potential of the introduction of Stevia and Stevia-based products in New Zealand. In this 

Chapter the selection criteria used in the multiple case studies, the data sources, data 

collection and analysis are descnbed. 

The case results of each of the focus groups, a discussion of each of them, including a 

comparison with the literature review, are presented in Chapter Four, together with the 

results of the focus groups and discussion of the cross-case analysis. 

The final chapter, Chapter Five, summarises the conclusions drawn from the research. 

Limitations of the current study and areas for future research are presented. 



CHAPTER TWO 11 Literature Review 

I CHAPTER TWO LITERATURE REVIEW 

2 -LITERATURE REVIEW 

2.1. Introduction 

Stevia_ rebaudiana (Bertoni) (referred to as Stevia) is a plant native to South America, 

which contains glycosides, an alternative to natural and artificial sweeteners. Apart from 

being a natural sweetener, claims exist for Stevia to be used for a wide range of 

medicinal purposes. Some of the benefits of this plant are: it is natural, it has no calories, 

and it has different medicinal uses and food applications. In its natural form it is 15 to 

30 times sweeter than sugar; Stevioside crystals are 300 times sweeter than normal cane 

sugar (sucrose). In markets as diverse as China, Brazil, Germany and Israel, the use of 

Stevioside in extracted, processed form is expanding. In Japan Stevia is well known and 

widely used as a sweetener (Fujita & Edahiro, 1979). 

Stevia is a leafy green herb, native to the Rio Monday Valley in the highlands of 

Paraguay which is between latitude 25° and 26°, where it grows in sandy soils near 

streams (Katayama et al., 1976). It had been used as a sweetener by the "guaranies" (the 

aboriginal people of Paraguay) long before colonisation of America. Other names for 

this plant are: honey leaf, sweet leaf, yerba dulce (spanish) or erva doce (portuguese), 

and among the Guarani Indians in Paraguay: Ka'a-he'e, Azuca-ka'a, or Ka'a-yupe. All 

the names draw attention to the sweet nectar like flavour of the leaf (Bertoni, 1905). 

Stevia belongs to the Asteraceae family. It is related to lettuce, marigold and chicory 

(Kirkland, 2000). It is a small, shrubby, perennial growing up to 80 cm tall, and 60 cm 

wide (Shaffert and Chetobar, 1994). The flowers are small, pinkish- white and arranged 

in an irregular cyme (Robinson, 1930). Stevia plants can be propagated from cuttings or 

seeds. Since germination rates are poor and seedlings are very slow to establish, it is 

best grown as an annual or perennial transplanted crop (Brandle et al., 1998) 



CHAPTER TWO 12 Literature Review 

2.2. Background 

Stevia's leaves have been used by the Guarani Indians from Paraguay as a sweetener for 

many hundreds of years. The history of its "re-discovery'' and its development is 

described below: 

16 th century: Spaniards noted the use of Stevia among natives in Paraguay. They 

used kaa he'e to sweeten drinks (green tea - "mate" and ''terere"), in medicine, and 

as a sweet snack. 

1887: Moises Santiago Bertoni "discovered" Stevia after studying the herbs used 

by natives in Paraguay. He named the plant in 1905 in honour of Paraguayan 

chemist Dr. Rebaudi. 

1921: U.S. Trade Commissioner George Brady presented Stevia to the 

Department of Agriculture, calling it a "new sugar plant with great commercial 

possibilities." Brady took note of its non-toxicity and its ability to be used in its 

natural state. He also conveyed the claims that it was "an ideal and safe sugar for 

diabetics." 

1931: Two French chemists extracted stevioside - a white crystalline compound. 

They reported that it is 300 times sweeter than sugar. 

1954: Japan, today the world's largest user of Stevia, began cultivating the plant 

domestically. 

1970: Food manufacturers began marketing Stevia in Japan. 

1991: The US Food and Drug Administration (FDA) banned the import of Stevia 

into the USA 

1995: The FDA modifies its import guidelines to allow Stevia into the country as 

a dietary supplement, not a food additive. The difference between these two terms 

can be explained by the definitions given below: 

Statutory Deftnitlon of"Food Additive": FD&C Act Section 201(1) 

''1be term 'food additive' means any substance the intended use of which results or may reasonably be expected to result, directly or indirectly, in its becoming a 

component or otherwise affecting the characteristics of any food .. . " (Ditto, 2002) 

And the Dietary Supplements are: 

Definition of dietary supplements in the Dietary Supplement Health and Education Act of 1994 (DSHEA), states: They arc the following: vitamins; minerals; 

herbals and other botsnicals; amino acids; dietary substances used to supplement the diet by increasing its total daily intake; and concentrates, metabolites, 

constituents, extracts, and oombinations of these ingredients. In addition, these products must be intended for ingestion in pill, capsule, tablet, or liquid form; 

must not be represented as a food or sole item ofa meal or diet; and must be labelled as a "supplement." (US FDA, 2001) 



CHAPTER TWO 13 Literature Review 

During the past decade, its characteristics as a naturally occurring, non-caloric 

sweetener has placed it as a potential competitor to artificial sweeteners and refined 

sugar (Fujita & Edahiro, 1979). 

2.3. Plant physiology and chemistry 

Stevia contains three major diterpene glycosides (Scientific Committee on Food, 1999): 

Steviosides (9.1%), Rebausiosides A (3.8%) and C (0.6%) and Dulcosides (0.3%) 

(Glycemic Research Institute, 2000). These are natural alternatives to sugar and other 

artificial sweeteners that are not metabolised in the body. Therefore, they are eliminated 

with no caloric absorption (Elkins, 1997). The glycosides comprise 10 to 20% of the 

leaf dry weight, the Carbohydrates (52.8%), Protein (6.2%), Stevioside (15%), lipids 

(5,6%) (Glycemic Research Institute, 2000). Stevia leaves also contain fibre, 

phosphorous, iron, calcium, potassium, sodium, magnesium, zinc and vitamins A&C 

(Viana & Metivier, 1980; Elkins, 1997). 

Stevioside and Rebaudioside are much sweeter products than sucrose (Richard, 1999). 

The Glycemic Research Institute (2000) states, that the crude leaves and the herbal 

green powder are typically 10% to 30% sweeter than cane sugar; but the refined extracts 

ofStevia (glycosides) can vary from 200 to 300 times sweeter than sugar. 

According to Mowrey ( 1992), ''the active constituents of Stevia are considered by the 

world's leading food scientists as the "sweeteners of the future". Many countries are 

replacing the artificial sweeteners with Stevia, mainly because Stevia is natural, safe and 

non-caloric and because of the negative side effects that artificial sweeteners have 

(Elkins, 1997). In other countries, firms that hold exclusive rights to currently used 

sweeteners are afraid of the future that comes with this natural, new, and revolutionary 

sweetener, named Stevia, over which they may have no control (Mowrey, 1992). 

2.4. Uses and Properties 

The established uses for Stevia products cover all those of the artificial low-calorie 

sweeteners (being those ones consumed in New Zealand: aspartame, saccharin, 



CHAPTER TWO 14 Literature Review 

cyclamates, acesulphame K), as well as most purposes for which sugar can be used 

(Midmore and Rank, 2002). Stevia and its products have a number of properties, which 

make them more attractive than sugar and much more attractive than some of the 

synthetic products available. Some of them are: 

2. 4.1. Stability for cooking and processing 

Stevia sweeteners are heat stable to 2000 C, are acid stable, non-discolouring and do not 

ferment. These facts make them suitable for use in a wide range of products including 

baked and cooked foods (Kirkland,2000; Glycemic Research Institute, 2000; Midmore 

and Rank, 2002). Apart from sweetening foods, Stevia extracts can increase the 

palatability and enjoyment of food through enhancement of flavours and odours (Ikan, 

et al., 1993; Mowrey, 1992). Other uses and properties Stevia has in relation to cooking 

and baking are: 

> It has no calories and it is natural (Johnson, 1990) 

> It is a non-toxic and non-addictive sweetener (Alvarez, 1986; Kirkland, 2000) 

> It is potent: 250 to 300 times sweeter than sugar in its processed forms 

(Glycernic Research Institute, 2000) 

> It helps against the carbohydrate, tobacco and alcohol cravings (Elkins, 1997) 

Midmore & Rank (2002) listed some other uses in the kitchen, see Table 2.1. 

Table 2.1. Food and Culinary Uses (source Midmore & Rank, 2002) 

Table top sweetener - for tea, coffee etc 
Soft drinks, cordials, fruit juices 
Ice-creams, yoghurts, sherbets 
Cakes, biscuits 
Pastries, pies, baking 
Jams, sauces, pickles 
Jellies, desserts 
Chewing gum 

Candies, confectioneries 
Sea-foods, vegetables 
Weight-watcher diets 
Diabetic diets 
Flavour, colour and odour enhancers 
A source of antioxidants 
Alcoholic beverage enhancer (aging agent and 
catalyst) 

Other diet products including cordials, juices, some jams, preserves and some sweets 

contain chemical sweeteners in place of sugar and are potential markets for Stevia. Its 

suitability to be used in baking opens the potential for new, low or no-sucrose but sweet 

tasting cakes, biscuits, pastries etc. (Midmore & Rank, 2002). 



CHAPTER TWO 15 Literature Review 

2.4.2. Medicinal properties 

Stevia products also have been reported to have beneficial uses as medicinal products. 

There are different medicinal applications to which Stevia has been applied. Some of 

them are listed below. 

2.4.2.1. Hypoglycaemic action: 

It is helpful for hypoglycaemia because it nourishes the pancreas and thereby helps to 

restore normal pancreatic function. In Brazil, Stevia tea and Stevia capsules are 

officially approved for sale for the treatment of diabetes (Soejarto, et.al, 1983, Oviedo, 

et al., 1971 ). 

2.4.2.1.1. Diabetes treatment: 

"Stevia and Stevioside are suited to both diabetics and PKU patients, as well as for 

obese people intending to loose weight by avoiding sugar supplements in the diet. No 

allergic reactions seem to exist" (Geuns, 2000). "Stevioside exerts anti-hyperglycaemic, 

insulinotropic and glucagonostatic actions in the type 2 diabetic GK rat, and may have 

the potential of becoming a new anti-diabetic drug for use in type 2 diabetes" (Jeppesen 

et al., 2002). For some "at risk" groups, such as diabetics, Stevia allows these people to 

"have their cake and eat it too" (Richard, 1999) 

2.4.2.2. Cardiovascular Action: 

The long-term use of Stevia would probably have a cardio-tonic action, that is, it would 

produce a mild strengthening of the heart and vascular system (Boeckh, E.M.A, 1986). 

2.4.2.3. Anti-microbial Action: 

The ability of Stevia to inhibit the growth and reproduction of bacteria and other 

infectious organisms is important. Users of Stevia, report a lower incidence of colds and 

flus, and it has been shown to lower the incidence of dental caries (Yabu, M. et al., 1977; 

Berry,C & Henry, C, 1981). It is also used as a plaque retardant (Elkins, 1997). 

2.4.2.4. Digestive Tonic Action: 

Stevia contributes to improved digestion, and it also improves overall gastrointestinal 

function. Stevia tea is used as a low calorie, sweet-tasting tea, as an appetite stimulant, 



CHAPTER TWO 16 Literature Review 

as a digestive aid, as an aid to weight management, and even for staying young 

(Kinghorn & Soejarto, 1991 ). Stevia is said to help in obesity or weight control 

problems (Elkins, 1997). 

2.4.2.5. Skin Problems: 

It is effective when applied to acne, seborrhoea, dermatitis, eczema, etc. Placed directly 

on cuts and wounds, more rapid healing without scarring takes place. One common 

benefit has been its soothing action on the skin (Richard, 1999; Elkins, 1992; Mowrey, 

1992). 

Midmore and Rank (2002) listed some other medicinal uses for Stevia: 

~ Toothpaste, mouthwashes - plaque retardant/caries preventor 

~ Skin care - eczema and acne control, rapid healing agent 

~ Diabetic foods and weight loss programs 

~ Hypertension treatment and blood pressure control 

~ Calcium antagonist 

~ Bactericidal agent 

~ Pill and capsule additive to improve taste 

In addition to testing Stevia for these uses on animals many people use these products to 

maintain their lifestyle in apparent safety (Johnson, 1990). 

2.4.3. Others 

Stevia nowadays is not only used by people as a sweetener or a natural medicine. Some 

other uses listed by the CAP ASTE (Paraguayan Chamber of Stevia) report (2002) are: 

2.4.3.1. Agriculture: activator of crops, golf grasses, and garden grasses. 

2.4.3.2. Animal production: for balanced rations, for farm animals, racing horses, pets 

and fishes. 

2.4.3.3. Cosmetics: additives for creams, lotions, soaps and shampoos. 

2.4.3.4. Environment: to decontaminate dioxin and dangerous chemicals. 

2.4.3.5. Soil: as a disinfectant because it kills bacteria, filamentous fungi, seaweed and 

protozoarious. 



CHAPTER TWO 17 Literature Review 

2.5. Production 

2.5.1. Agronomy 

The natural environment for Stevia is the semi-humid subtropics of the Tropic of 

Capricorn (22 - 23° S latitude), 200 - 400 meters above sea level, in an area with 1,500 

- 1,800 mm ofrain; and in a climate with extreme annual temperatures of minus 6° C to 

plus 43° C (an average temperature of 21°C to 23°C) (Jordan Melero, 1984, Midmore 

and Rank, 2002,). It grows naturally in low lying areas on poor sandy acidic soils 

adjacent to swamps. (Midmore and Rank, 2002,). Stevia has been successfully taken to 

a wide range of climatic locations around the world. Vegetative propagation methods 

and seedling establishment have been used in a greenhouse before planting it in the field 

(Midmore & Rank, 2002). 

Midmore and Rank (2002) said that there are different ways of propagation. In the wild, 

Stevia regenerates from seed; from the rooting of plant stems touching the ground and 

from regeneration at the base of the plant (crown division). Seed germination is usually 

very poor due to infertile seed (op.cit.). Under cultivation ,Stevia can be grown by seed, 

by tissue culture and by vegetative cuttings (and plant separation) (op.cit). When Stevia 

is planted commercially it has some important nutrient requirements. The main 

requirement is potassium, since it optimises the yield of dried leaves. Nitrogen helps 

plant growth, increasing the number of knots, the stem diameter, the number of stems 

but not the yield of the dried leaves. Phosphorus helps flowering (D. Gonzalez, 30 

January, 2003, personal communication). 

When it comes to harvesting, the usual procedure is to harvest the whole green crop and 

transport it for either: sun or artificial drying (Midmore & Rank, 2002). 

For packaging, once the leaves are dry, they can be baled the same way as tobacco and 

lucerne (D. Gonzalez, 30 January, 2003, personal communication). 

Finally, for storage, the bags have to be kept in a dry, clean place and if possible in a 

standing position (Alvarez, L.A., Casaccia, R. & Lopez, G., 1994), Stevia leaves can be 



CHAPTER TWO 18 Literature Review 

stored for long period of time when they have a 10% moisture level. Storage does not 

affect sweetening properties. Stevia leaves should be kept in dry, clean, dark conditions, 

free from pests and rodents, away from the floor and walls (D. Gonzalez, 30 January, 

2003, personal communication). 

2.5.2. Commercial Growing 

According to Midmore & Rank (2002) ''the plant has been successfully grown under a 

wide range of conditions, from its native sub-tropics to Thailand and Indonesia and the 

cold, northern latitudes of Leningrad, north China and Canada." In cold climates it is 

grown over the summer period and it can only be harvested once a year. In tropical 

areas it is a perennial crop (2 to 5 years) and multiple harvests per year are possible 

(op.cit). 

According to D. Gonzalez (personal communication, 30 January, 2003) Stevia is an 

attractive crop for Paraguayan growers to grow. An average Stevia crop in Paraguay 

yields 3,000 kg per hectare, although there are growers that produce well above these 

levels, achieving 6,000 kg per hectare per year. The crop may be harvested 2-4 times 

per annum. Once established, Stevia is a relatively simple crop to grow and store. Dried 

leaves can be produced and stored for up to 3 years in a "low tech" system. All of these 

factors make this plant an attractive crop for many farmers. 

Commercially there are several countries that are producing Stevia. They are: China 

(biggest producer: around 20,000 ha), Japan, South Korea, India, Ukraine, Australia, 

Canada, Mexico, The United States of America, the United Kingdom, Belgium, 

Germany, Spain and many countries in South America (including Paraguay and Brazil) 

(CAPASTE, 2002; Elkins,1992; Bonvie et al.,1997). 

2.6. Processing and Manufacturing 

Stevia is used in many different forms. These forms can be classified into two main 

categories: leaf form (unprocessed) or extracted form (processed). The leaf form 

includes all forms of the plant in its natural stage (fresh or dried), and the extracted 



CHAPTER TWO 19 Literature Review 

forms can be either powders or liquids. The form of Stevia to use depends on the 

amount of sweetness required and the degree to which the particular recipe or beverage 

will benefit from the liquorice-like taste that is produced in less refined forms (Bonvie 

et al., 1997a). The researcher refers to both processed and unprocessed Stevia when 

referring to Stevia, and they are all descnbed in Section 2.6.2. 

2.6.1. Extraction methods 

The use of fresh or dried leaves (pieces or ground) is acceptable in domestic cooking 

but does leave a sediment in clear drinks and can also leave a green colour (Midmore & 

Rank, 2002). Therefore processed products were introduced as another alternative. 

Around the world there are hundreds of patents for Stevia extraction processes; Japan 

alone has around 150 of them (Angelucci, 1982; Bonvie et al., 1997a). Extraction 

processes were categorised by Kinghorn and Soejarto (1985), different methods of 

extraction are described in Table 2.2. 

Table 2.2. Methods of extraction of steviol glycosides (Sources: Kinghorn &. Soejarto (1985), 

Midmore & Rank (2002)) 

Method Publication Name 
Based on solvent Haga, T., R. Ise A method for 

and T. Kobayashi purifying stevioside. 
(1976) 

Ion exchange Uneshi, H., R. Ise Purification of Stevia 
and T. Kobayashi sweetening agent. 
(1977) 

Absorption chromatography Itagaki K., and Purification of 
Ito, T. (1979) stevioside 

Solvent and decolourising T. Ogawa (1980) Decolourisation and 
agents purification of Stevia 

component. 
Selective precipitation of Matsushita, K. Separation of 
individual glycosides and T. Kitahara rebaudioside A by 

(1981) crystallisation 
Ultra-filtration Tan, S. and H. Method of extracting 

Ueki (1994) and separating sweet 
substances of Stevia 
rebaudiana Bertroni. 



CHAPTER TWO 20 

2. 6.2. Types of Stevia Products 

1. Stevia Leaves: 

Literature Review 

);;>- Fresh Leaves: have a mild liquorice flavour. This is the simplest form of 

Stevia, most natural and unrefined state. The leaves are used to prepare 

sauces but are best in herbal teas and for direct consumption. They do not 

dissolve! In various markets they may be purchased loose or in tea bags. 

);;>- Dried Leaves: are 10 to 15 times sweeter than sugar. To get them, one just 

removes all the water (the easiest way is to dry them with a dehydrator, but 

drying them in an oven on the lowest setting will work as well), this allows 

them to have an extended storage period. They have the same uses as fresh 

leaves but also for industrial uses to extract the stevioside. 

);;>- Tea Cut and sifted leaves: the Stevia leaves are cut into small pieces and 

sifted for twigs and other matters. 

);;>- Finely powdered or pulverised leaves (ground): can be found in bulk form 

and in tea bags. They have a greenish, leaf colour and are used as a flavour 

enhancer or sweetener in teas, salads, fruit, coffee, etc. Ground Stevia leaves 

do not dissolve. 

2. Liquid Extracts: 

Dark: "a concentrated syrup made from the dried leaves in a base of water and 

alcohol" (Kirkland, 2000). 

Clear: a solution of powdered steviosides dissolved in water, alcohol or glycerin 

(op.cit). Especially used for the sweetening of beverages. 

3. Powdered Stevia Extracts: 

40-50% Sweet Glycosides: the Stevia leaves are processed through one of 

several extraction methods, usually water or ethyl alcohol based. The resulting 

powder, usually off-white, contains 40 to 50% sweet glycosides and is more than 

100 times sweeter than sugar (Richard, 1999). 



CHAPTER TWO 21 Literature Review 

85-95°/o: the same as above, except of greater concentration, it is usually 

between 200-300 times sweeter than sugar. 

This is the form in which Stevia is primarily used as a sweetener. Not all Stevia 

powders are the same. The taste, sweetness and cost of the various white Stevia 

powders will likely depend on their degree of refinement and the quality of the 

Stevia plant used (Bonvie, L. et.al, 1997) 

4. Stevioside 

Stevioside is the purified or most highly processed form of Stevia. It is the most 

powerful form of Stevia glycoside and is available in either a white powder or a 

liquid extract. 

5. Stevia Blends or spoonable Stevia 

Stevia blends combine pure stevioside extract with a filler to make an easy-to 

measure great tasting powder. Because of the great strength of stevioside, 

manufacturers combine Stevioside with a filler. These blends are the most 

versatile and easy to use form of Stevia. 

The Stevia to sugar ratio most commonly used is 4: 1. The types of fillers used in 

Stevia Blends according to Kirkland (2000) are: 

};;>- Lactose: It is derived from milk. It has a slightly sweet taste and dissolves 

instantly. 

};;>- Maltodextrin: It is a non-sweet complex carbohydrate that is virtually 

tasteless. It can be derived from corn, rice, tapioca or other starches and has 

a very low glycemic index. 

};;>- F.O.S.: This is the common term for Fructo-oligosaccharides. It is a sugar 

found in a variety of common foods like bananas, garlic and wheat. 

};;>- Dextrose: It is a common processing agent derived from com sugar. 



CHAPTER TWO 22 Literature Review 

6. Stevia Packets 

These normally contain the same ingredients as Stevia blends, except m 

convenient and pre-measured servings. 

7. Stevia Quick dissolving tablets 

They normally contain stevioside along with other ingredients and are mainly 

used to sweeten beverages. 

Bonvie et al. (1997) state that "one of the challenges in using these various forms of 

Stevia in cooking and beverages lies in finding just the right amount to suit your taste 

and recipe". 

The same authors also wrote that "not all stevia extract powders are the same. The taste, 

the sweetness and cost of the various white stevia powders will likely depend on their 

degree of refinement and the quality of the Stevia plant used". Some of the powders 

have more of an aftertaste (Bonvie et al., 1997). In this sense, it is important to clarify 

what it is understood by the quality of Stevia. May (2001) wrote: 

"Good quality stevia leaves, whether whole, cut and sifted or in tea bags, are about 30 

times sweeter than sugar and have no calories. The best quality leaves are imported 

from South America and Mexico, and are about 12 percent to 13 percent stevioside. 

The poorest quality, but most ample supply, is currently coming from China, where the 

leaves contain only about 5 percent to 6 percent stevioside. A simple taste test quickly 

demonstrates the difference." 

Furthermore, Kirkland (2000) says that the quality of any Stevia product depends on the 

amount of steviosides it contains, the percentage of rebaudiosides, the cultivation and 

the extraction methods. The same author also suggests that the additives present at any 

time during growing, harvesting or processing are an important issue for the final 

quality of the product. 

2. 7. World situation 

According to Midmore & Rank (2002) the main Stevia producing countries are China, 

Paraguay and adjacent parts of Brazil (Table 2.3.); furthermore China is the main 

supplier to Japan, which is the main commercial producer and user of steviosides. 



CHAPTER TWO 23 Literature Review 

Paraguay and Brazil are the main countries that produce and distribute Stevia products 

direct to consumers via health food and herbal product outlets and by direct mail order 

sales around the world (op.cit). In these two countries there are a number of processors 

who have company plantations of 2 to 300 hectares (Elton-Johnson, 1990, Oddone, 

1999) 

Table 2.3. Some Countries Where Stevia is Grown and Researched (Adapted from Midmore & 

Rank, 2002) 

Country/ Location Commercial Research Non- Agricultural Approved for 

Production (1) research use 

Paraguay ++ ++ ++ ++ 

Brazil ++ ++ ++ ++ 

Mexico + + + + 

USA + ++ 

Canada + + 

China ++ ++ ++ +++ 

Japan + ++ ++ +++ 

South Korea + ++ ++ ++ 

Thailand + + + + 

Vietnam + ++ ++ + 

Taiwan + ++ + ++ 

Russia + ++ ++ + 

Ukraine/Moldova + + + 

Spain + + 

Italy + + 

United Kingdom + + 

Germany + + + 

(1) Commercial production excludes small quantities grown for domestic use. 

Stevia and its products are used in Japan, China, Korea, Taiwan, Malaysia, Israel, Brazil, 

Paraguay, Argentina, Mexico, Ukraine, Philippines, Germany (Bonvie et al., 1997a) In 

the United States, Canada, Australia and New Zealand it is sold as a Dietary 

Supplement (Elkins, 1992). 



CHAPTER TWO 24 Literature Review 

2. 7.1. Situation in Japan 

Around 1,500 scientific research works on Stevia have originated in Japan. In terms of 

the use and understanding of Stevia and its application, Japan is by far the most 

advanced country in food and pharmaceutical industries (Brandle, 1998). 

Japan is the current world's leading Stevia consumer as approximately 2000 t of Stevia 

extracts are consumed there annually (Richard, 1999; Midmore & Rank, 2002). 95% of 

the raw material used in Japan comes from four major producers in China (Midmore & 

Rank, 2002). 

It is difficult to understand how a " ... a natural, low-calorie, safe for diabetics, non­

pharmaceutical sweetener that is widely used in other countries, including Japan (whose 

Ministry of Health is notoriously more strict than the FDA), cannot be openly sold as a 

sweetener in this country (USA)" (Bonvie et al., 1997, p.7). 

In Japan, Stevia is used in their sugar-free version of Wrigley's gums, yogurts, diet 

coke, ice cream, bread, candies, pickles, seafood, vegetables, fish meat products, ciders 

and teas (Johnson, 1990; Richard, 1999). Besides its uses as a sweetener in Japan, they 

also use Stevia for other different things. The Japanese try to utilise the whole plant, not 

only the lea£ Figure 2.1. shows the different applications the Japanese have for liquid 

extracts of Stevia, that not only affect the people's health and wellbeing, but also 

animals, ecology, soil, etc. (JBB Stevia Laboratory, 1988). 



CHAPTER TWO 25 Literature Review 

Figure 2.1. Applications and Research Achievements of Stevia Extract Liquid (Adapted from: JBB 

Stevia Laboratory - Japan) 

u 

r 

Helps grow 
roo~s 

Detox if ies hla~mine 
& reduc 

s ide-effects 
of steroid hormone drugs- - -

Stevia 
Liquid 

Extracts 

For purposes of comparison it is useful to examine the current status of Stevia in New 

Zealand and Japan (See Table 2.4.). While the use of Stevia as a sweetener is restricted 

in many countries that do accept the use of artificial sweeteners, such as aspartame, 

saccharin, and so on, these sweeteners are banned in Japan and Stevia is permitted 

(Fujita & Edahiro, 1979, Strauss, 1995). 



CHAPTER TWO 26 Literature Review 

Table 2.4. Current Status of Stevia 

Japan New Zealand 

);>- Stevia holds 41 % of the sweeteners market! );>- Stevia is almost unknown and accepted only as 

(Bonvie et al. , l 997a) a dietary supplement 

);>- Artificial sweeteners such as Saccharin and );>- Artificial sweeteners such as Aspartame and 

Aspartame were banned or strictly regulated Saccharin are consumed and used in food 

(H.Fujita, T. Edahiro, 1979) preparation with no restrictions 

);>- Japanese food processors use Stevia and its 

products m a wide variety of applications );>- Stevia products can only be found in health 

(Richard, 1999) shops as a dietary supplement 

);>- There are several Stevia manufacturers who 

have formed the Stevia Association of Japan 

(Richard, 1999) 

2. 7.2. Situation in Paraguay 

);>- There are no Stevia manufacturers, neither an 

Association of Stevia 

In Paraguay, according to th CAP ASTE (Paraguayan Chamber of Stevia) (2002), there 

are approximately 650 ha of cultivated Stevia. To ensure Paraguay is the country which 

produces most of the best quality Stevia, the CAP ASTE stated as its principal objective 

to achieve the cultivating of 30,000 ha of Stevia within l 0 years. The advantage of 

Paraguay over other countries is that the crop can be harvested 3 to 4 times in a year. 

And, the Stevia clones used there have amongst the highest rates of stevioside and 

rebaudiosides in the world. 

Most of the Paraguayan production of Stevia leaves is sold to the United States of 

America (USA), either as cut dried leaves or fine green powder (J.C. Fischer, 26 

December, 2002, personal communication). In the USA they then process it into the 

forms the final consumers want, following the local regulations for Stevia preparation. 

2. 7.3. Regulation in the United States 

According to the Federal Food, Drug and Cosmetic Act of 1994 (revised April 2000), 

Section 402 (a) (2) (c), Section 409 and 21 CFR 170 and 21 CFR 189-1, Stevia is a 

substance "Prohibited from use in human food." Per 21 CFR 190, Stevia may be sold in 



CHAPTER TWO 27 Literature Review 

the United States as a stand-alone "dietary supplement" or herb, but not as a sweetener. 

The US FDA authorities base their position on results of the study published in 1968 

that claimed that certain tribes of Indians in Paraguay (the Matto Grosso) used Stevia 

tea as a contraceptive (Planas & Kuc, 1968). This position was unchanged even after 

other studies showed that stevioside does not affect either growth or reproduction in 

animals (Yodyingyuad, & Bunyawong, (1991), Takanaka, Kawashima, Usami & 

Sakami, (1991), Bonvie et al., (1997)). 

The Stevia market in the US is currently in strong competition with artificial sweeteners, 

but these are loosing ground in the health war stakes, as the market becomes more 

health conscious (Midmore & Rank, 2002). 

2. 7. 4. Regulation in the European Union 

The European Unions (EU) position on Stevia, is given in the Document 300DO 196, 

2000/196/EC, which says: "The Commission Decision of February 22, 2000 refused the 

placing on the market of Stevia rebaudiana Bertoni: plants and dried leaves as a novel 

food or novel food ingredient under Regulation (EC) No. 258/97 of the European 

Parliament and the Council (notified under document number C) (2000) (77) Official 

Journal L 061, 08/03/2000 p. 0014". It appears that the commission will change this 

position once they believe there are sufficient safety tests and research done to allow 

Stevia's inclusion into the food market. 

In apparent contradiction to this EU position, there are some countries which grow and 

use Stevia including: Germany, Belgium, Italy and the United Kingdom (Glycemic 

Research Insitute, 2001, Bonvie et al., l 997a, Kirkland, 2000). People in some of these 

countries are also conducting research on Stevia (op.cit.) 

2. 7.5. The Food Standards Australia New Zealand (FSANZ) Position 

on Stevia 

An Australian Rural Industries and Development Corporation report, in conjunction 

with Central Queensland University, detailed the FSANZ position on Stevia. The aim of 



CHAPTER TWO 28 Literature Review 

the Report was to address FSANZ for registration of Stevia for use in the food industry 

in Australia and to determine the economic feasibility of growing and processing Stevia 

within Australia (Midmore & Rank, 2002). 

The FSANZ position is (Source: FSANZ Information sheet as a respond to application 

A397. Prepared 9 August 2001): 

Stevia 

Stevia (whole leaf, crushed leaf) is considered to be a food and therefore can be legally 

so Id in Australia and New Zealand. 

Stevioside and extracts of Stevia 

Stevioside (or a concentrated extract of stevia) is considered to be a plant extract1
, 

which serves as an intense sweetener. There is no permission in either Volume 1 (The 

Australian Food Standards Code) or Volume 2 (the joint Australia New Zealand Food 

Standards Code) to use or sell Stevioside in Australia or New Zealand. 

2. 7. 6. Safety of Stevia sweeteners 

Stevia sweeteners have a long history of use in South America and now in Japan and 

there are no reports of adverse effects (Brandle et al., 1998). There has been 

considerable media attention in the USA, including claims and counterclaims before the 

US FDA (Midmore & Rank, 2002). Many of these claims relate to its potential 

competitive position in relation to aspartame (op.cit.). The general safety of steviosides 

could be largely due to the fact that they are not broken down nor absorbed in the 

digestive tract (Hutapea, 1997). Studies on food safety, including an extensive review of 

literature, undertaken prior to 1982 (Kinghorn, 1982 and Lee, 1979) concluded that 

Stevia leaves and extracts are safe. 

There is a Stevia website (Stevia.net) where many Safety studies are shown. One of the 

quotes cited in the website says: 

" .. . various extract forms of stevia have been extensively studied and tested. These tests 

include acute, sub-acute, carcinogenic evaluation and mutagenicity studies. These 

1 A plant extract is considered to be a food additive if it fulfils a technological function normally 
associated with a food additive, eg, an intense sweetening function. 



CHAPTER TWO 29 Literature Review 

scientific data, while not directly relevant or required for exemption under the common 

use in food proviso, nevertheless demonstrate cumulatively that there is no safety 

problem associated with the use of an extract of stevia. It appears to be extraordinarily 

safe." (Introduction to GRAS (generally recognised as safe) affirmation petition 

submitted by the American Herbal Products Association, April 23, 1992). 

To give another example, in Japan where artificial chemical sweeteners are not 

approved, and in other countries, there have been many toxicology safety studies 

conducted on Stevia (Johnson, 1990). The results confirmed Stevia's safety. 

Lately, the interest in sweetening agents has increased dramatically. This interest may 

be explained by the global concern over the rates of diabetes and obesity amongst the 

population. These concerns were recently highlighted by a joint report from the World 

Health Organisation and the Food and Agricultural Organisation that suggested a 

significant reduction in sugar consumption as a way to improve health and reduce 

sugar-caused diseases (Independent expert report on Diet and Chronic Disease, 2003). 

2. 7.6.1. Artificial sweeteners 

A German article pointed out: "Artificial sweeteners have rapidly evolved over the last 

20 years and have been added to a broad variety of food, drinks, drugs, and hygiene 

products. Since their introduction, the media, especially mass media have reported 

potential cancer risks, which have undermined the people's sense of security. It can be 

assumed that every citizen of western countries are using artificial sweeteners­

knowingly or not. A cancer-inducing activity of one of these substances would mean a 

health risk to an entire population" (Weihrauch et al., 2001). 

The fact that people know about the side-effects artificial sweeteners have, is not 

stopping the consumption of the chemical sweeteners, which are not only used as table 

top sweeteners but are also ingredients of almost all diet products offered in the market. 

The fact that many side effects and illnesses are said to be caused by artificial 

sweeteners, makes consumers think about natural alternatives to artificial sweeteners 

(Elkins, 1997, Bonvie et al., 1997). 



CHAPTER TWO 30 Literature Review 

Therefore, the increased interest in Stevia may be a consequence of the falling 

popularity of artificial sweetening agents, the increased consumers' interest in natural 

organic products and that researches have found its potential benefits for diabetics, high 

blood pressure, obesity, etc. 

2.7.6.2. Stevia's safety controversies 

In many countries, including New Zealand, governmental regulations limit the 

availability of Stevia and Stevia containing products. In other countries, however, these 

are readily available. These differences in governmental acceptance of Stevia indicate 

there are controversies around this South American plant ' s acceptance as a sugar 

substitute. This situation is unusual for the food industry, where demand is one of the 

key aspects that rules and decides about the businesses success or failure. 

2. 7. 7. Consumers opinions on Stevia in other countries 

Since there is no available information on the opinions of New Zealanders about Stevia 

(because it is still relatively unknown), the opinions of Stevia consumers from other 

countries (especially the USA) are presented below. The researcher, selected those 

which have to do with the main areas of interest for this research: sweetness, flavour, 

aftertaste, etc. 

2.7.7.1. Sweetness 

A botanist of the U.S. Department of Agriculture, first noticed Stevia in 1918. He 

recalled that he "learned about Stevia while drinking mate2 and tasted it years later, 

finding it to have a remarkable sweetness " (Bonvie et al., 1997a). 

"The sweetness of (stevia) satisfies my craving for sweets; also it helps keep the blood 

sugar balance. " ( Mowrey, 1992) 

An article written by Sabrina Marie (from the Grain and Salt Society) contains some 

opinions of people who tasted some food containing Stevia-based products that were 

presented in the Grain and Salt Society. The testers shared these comments: 

2 Traditional tea prepared with yerba mate (flex paraguariensis). 



CHAPTER TWO 31 Literature Review 

~ Cheryl, who does not have any specific health problems but is strongly affected 

by sugar said, "/ am very excited about stevia. I loved the stevia sweetened 

cookies we tested. I think stevia gives me a good feeling, compared to the highs 

and lows of white sugar. I think it is going to play a role in my diet, especially 

for breakfast foods which are often overly sweet. " 

This person highlights the sweetness of Stevia and expresses her concern about the high 

and lows the consumption of sugar gives. 

~ Jon, who is in good health though worried about weight gain said, "The stevia 

cookies were good, but they had a "cool aid" kind of aftertaste. I just think 

brown sugar is hard to beat, I wouldn 't choose to eat stevia if there was a plate 

of brown sugar sweetened cookies being offered at the same time. " 

This person, on the other hand, mentioned that there was an aftertaste and that it would 

be hard to change to Stevia if brown sugar baked cookies were offered. 

~ Christiana, who is currently on a completely sugar-free diet because of 

candidiasis, said, "/ love stevia. I use the liquid extract in my tea. I think it's 

wonderful that even though I have candidiasis and cannot eat any type of sugar 

or fruit, I can have a little taste of something sweet without affecting my health. " 

The opinion of this person is limited by the fact she has candidiasis, for which Stevia is 

said to be good and acceptable. 

~ Nichole, who is a recent wholesome foods convert, said "/think stevia is great. 

After testing all the sweets made with stevia, I wanted more. When it's used just 

right, it can be a great alternative to sugar. I also like the fact that you need to 

use so little stevia, compared to the cups and pounds you must use of white 

sugar. 



CHAPTER TWO 32 Literature Review 

Beside the fact of liking Stevia's sweetness, this person mentioned the quantity issue, 

which was important to her. 

2.7.7.2. Flavour and aftertaste 

"If Stevia is used in a less refined form (such as crushed leaves), spices such as 

cinnamon and ginger can help mask any aftertaste" (Bonvie et al., 1997a). 

While there is no question that stevia is sweet, many users will admit that they have also 

experienced a bitter aftertaste from some brands. In fact , one of the problems with the 

stevia products currently available from health food retailers, is that many of them just 

do not taste good. They often have a distinct grassy taste, with varying degrees of 

bitterness associated with the sweetness. These differences in quality may partly be a 

result of using non-Paraguayan stevia, partly due to poor extraction and processing 

techniques, to the quantity used, and partly the result of ignorance on the part of 

manufacturers concerning the real nature of the stevia plant (Movrey, 1992). 

"The bitter principles are actually found in the veins of the leaf, while the leafy material 

between the veins contains the sweet components. Great care must be taken during 

production of stevia extract to avoid contaminating the sweet with the bitter. This 

pertains as much to extraction as it does to milling." (op.cit.) . 

In all of its current forms, stevia has a taste unique to itself, people say. With all of its 

sweetness, some report that there is a bitter taste when the leaf, extract or stevioside 

powder is placed in the mouth. This bitter taste disappears, as does the slight liquorice 

flavour, when the product is appropriately diluted in water or another liquid prior to use 

(May, 2001). 

2.7.7.3. Texture and appearance 

"We are intrigued by the honey-leaf sweetener . . . and started to use it in our bread 

making to test it for our diabetic customers. We were so pleased with the results and the 



CHAPTER TWO 33 Literature Review 

improvement in the texture and softness, that we have continued to use it on a regular 

basis in our bread and so have all of our customers, diabetic or not. " (Mowrey, 1992). 

People 's opm1ons about subjective areas such as: sweetness, flavour and aftertaste, 

differ very much from one another. There are those who like it, those who are neutral 

and those who dislike these characteristics of the products prepared with Stevia. The 

opinions presented here, had a more positive response in this sense. However, there are 

several comments that prove that many people feel a bitter taste or an aftertaste after 

tasting the leaves, and some of the products. The quantity used is an important factor to 

make that unpleasant taste disappear. 

There is not much said about the texture and appearance of the products cooked and 

baked with Stevia. Some believe that the texture changes a little, but others disagree 

with that. When the leaf is used to sweeten food or beverages, the colour changes, but if 

processed Stevia products are used, the appearance is not an issue. 

2.8. Stevia in New Zealand 

Although Stevia is well known and used in many countries around the world, it is still 

unknown in New Zealand. Few people know about its existence and there have been 

almost no articles written about it in the newspapers, magazines or journals. From six 

articles in the newspapers, one was written in 1997 in "The Daily News". The 

remaining five articles were all written in the year 2002 in the following newspapers: 

"The Press", "The Daily News", "The Southland Times", "The New Zealand Herald", 

where all of these mentioned Stevia amongst other products as a novelty without being a 

major topic. The latest article in a newspaper was in "The Evening Standard" which 

related to the research the author of this project is writing. 

Apart from these articles in the Newspapers, there were two articles in different 

magazines. One article in 1998 was published in the "The Tree Cropper". This article 

written by Roger and Shirley Meyer included general information about Stevia: its 



CHAPTER TWO 34 Literature Review 

origin, names, benefits, properties and uses. And the latest article, published in "Organic 

New Zealand", covered general issues about Stevia and how to grow it. 

Excluding the article in ''The Evening Standard" and the one in "Organic New Zealand", 

none of the other articles referred specifically to Stevia in New Zealand. 

The introduction of Stevia as a sweetener could be beneficial for New Zealanders, 

because it could be used as a sugar replacement for diabetics and certain cultural groups 

that are more vulnerable to obesity and diabetes (Maori, Pacific Islanders). Jn the next 

section this situation is presented with more details. 

2. 8. 1. Situation 

According to a "Facts and Figures" report of the International Diabetes Federation 

(2003), there are currently more than 194 million people with diabetes worldwide; if 

there is nothing done to slow the epidemic, the number will exceed 333 million by 2025. 

The report continues that at least 50% of all people with diabetes are unaware of their 

condition, in some countries this figure may rise to 80%. "Diabetes is the fourth main 

cause of death in most developed countries. For each risk factor present, the risk of 

cardiovascular death is about three times greater in people with diabetes as compared to 

people without the condition." (op. cit.). The forecast is that by 2025, the prevalence of 

diabetes is expected to triple in Africa, the Eastern Mediterranean and Middle East, and 

South-East Asia, to double in the Americas and the Western Pacific and to almost 

double in Europe (op.cit.). Jn South America, specifically in Argentina, Paraguay and 

Brazil, Stevia is being sold, approved and promoted as a sweetener for diabetics (J.C. 

Fischer, 26 December, 2002, personal communication; FUP ADI, 31 January, 2002, 

personal communication). According to the World Health Organisation database (2003), 

the diabetes figures for these countries will increase as is presented in Table 2.5. 



CHAPTER TWO 35 Literature Review 

Table 2.5. Total people with diabetes in Argentina, Brazil and Paraguay (Source: WHO Database 

for Regional Office for Americas, 2003) 

Country 2000 2030 

Argentina 1426152 2457044 

Brazil 4553003 11305516 

Paraguay 102237 324326 

Table 2.5. shows that there is an increase of diabetes cases expected for these countries. 

The prevalence estimates of Type II diabetes for these three countries are 2% to 4.99% 

(International Diabetes Federation - Diabetes Atlas, 2003). In this respect, the 

International Diabetes Federation report (2003) continues in its report stating that, 

"For developing countries, there will be a projected increase of a 170% of cases; for 

developed countries, there will be a projected rise of 42%. It is estimated that diabetes 

accounts for between 5% and I 0% of a nation's health budget. The human and 

economic costs of diabetes could be significantly reduced by investing in prevention, 

particularly early detection, in order to avoid the onset of diabetic complications. 

There is conclusive evidence that good control of blood glucose levels can substantially 

reduce the risk of developing complications and slow their progression in all types of 

diabetes. The management of high blood pressure and raised blood lipids (fats) is 

equally important. Diabetes increased by one-third during the 1990s, due to the 

prevalence of obesity and an aging population." 

In New Zealand, diabetes and obesity are of increasing concern especially amongst 

certain cultural groups (NZ Food: NZ People, 1999). According to a press release from 

the NZ Ministry of Health, Chief Maori Advisor Dr Tony Ruakere, the majority of 

Maori adults are either overweight or obese. "Key Results of the 1997 National 

Nutrition Survey found that nearly six out of every ten Maori adults were either 

overweight or obese" (Press Release NZ Ministry of Health, 1999). 

These results should be a concern for the authorities since the fact that being overweight 

puts a person at far greater risk of serious health problems such as heart disease and 

diabetes (Press Release NZ Ministry of Health, 1999). 



CHAPTER TWO 36 Literature Review 

The report's findings also show that specific health and nutrition programs are needed 

for Maori people if these problems are to be overcome. In this respect as was previously 

mentioned, Stevia is being used as a treatment for diabetes type II and to help with 

weight problems. 

More recent research shows even worse scenarios in these respects. The NZ Ministry of 

Health states that "The incidence rates for Maori and Pacific peoples are more than 

three times higher than the European rates, and Maori and Pacific peoples are more than 

five times as likely to die from (diagnosed) diabetes" (NZ Ministry of Health, 2002). 

The researcher therefore believes that the control of diabetes and obesity are of critical 

importance to New Zealand specifically for Maori and Pacific Island communities. The 

NZ Ministry of Health publication also states that between 1996 and 2011, deaths 

resulting from diabetes may surpass 2100, with Maori deaths by increasing nearly 70%, 

and European diabetes related deaths increasing by 20% from 1996 levels (see Tables 

2.6.and 2.7.). The same report also states that "the number of new diagnoses o f diabetes 

in 2011 is forecast to exceed I 1,000, and the number of people known to be living with 

diabetes may exceed 145,000." (op.cit). 

The NZ Ministry of Health states that in the projected increase of the prevalence of 

diabetes, obesity is a major driver, accounting for nearly a third of the overall increase 

in diabetes (op.cit). 

Table 2.6. Modelled 1996 (diagnosed) diabetes counts (Source: NZ Ministry of Health 2002) 

Number Male Female Total 
Maori Pacific European Maori Pacific European 

NelV dia{!'Ooses 585 165 1 709 720 197 I 366 4,742 
Existing 7 014 2 003 31 ,790 9 291 2 686 28,707 81 ,491 
dia2noses 
Attributable 238 56 498 274 61 367 1 494 
deaths 



CHAPTER TWO 37 Literature Review 

Table 2.7. Forecast 2011 counts (Source: NZ Ministry of Health 2002) 

Number Male Female Total 
(forecast) 

Maori Pacific European Maori Pacific European 
New dia2noses 1,532 469 3,653 1,934 575 2,907 11 ,070 

Existing 16,202 4,991 51 ,408 21,649 6,558 44,1 05 144,913 
diagnoses 

Attributable 403 103 618 454 105 421 2,104 
deaths 

The recommendations for slowing down this epidemic, are to improve nutrition and 

raise physical activity levels among all population subgroups, the NZ Ministry of Health 

reported. 

2.8.2. Benefits to New Zealand 

There is no systematic research conducted on Stevia's consumption, use and production 

in New Zealand. There are some aspects in New Zealand that should be considered 

important when thinking about conducting research for the introduction of Stevia into 

its market. Since New Zealand shares the same common food standards as Australia, it 

will tend to follow Australia 's lead for regulatory acceptance of Stevia, which in some 

ways is positive, because Australia has more advanced research on Stevia. However, it 

also may have some negative effects, as Australia has a significant sugar industry (it is 

the world's 4th largest sugar exporter) (USDA - FAS, 2001 ) that might delay or oppose 

comprehensive research into Stevia. Therefore, it would be good if New Zealand 

started its own research on Stevia, and it may even be the country that gets regulatory 

acceptance of Stevia in the FSANZ. 

Other ways New Zealand could benefit from the introduction of Stevia are: 

1. It would improve the populations nutrition by decreasing the sugar intake, which 

is considered to be one of the factors that leads to obesity, which is one major 

problem causing diabetes; 

2. It could be a potential treatment for Type II Diabetes; 

3. Obese people, overweight people, weight watchers and common people could 

use it to loose weight and improve their diet and nutrition; 

4. People with high blood pressure could use it as a helpful means to help lower 

their blood pressure; 



CHAPTER TWO 38 Literature Review 

5. It is useful for other health problems for which Stevia is said to be good (dental, 

skin, etc.) 

Beside these health and nutrition benefits, Stevia could also be useful for other reasons 

in New Zealand: 

1. A cropping alternative for growers and organic growers 

2. Potential use of sandy and coastal areas 

3. Manufacturing of Stevia-based products for domestic use or for exportation to 

already known markets (China, Japan). 

4. Produce Stevia containing products (e.g. dairy products) and export them to the 

above cited countries and other large users of Stevia, and even open new 

markets. 

A major benefit to New Zealand of the increased use of Stevia as a sweetener could 

result in a decrease in Type II diabetes. In addition, the use of Stevia could also lead to a 

reduction in the occurrence of obesity and other diseases commonly associated with 

high levels of sugar consumption. These benefits will not only benefit the people, but 

also the government since health campaigns against diabetes and obesity are being held. 

The reductions in obesity would directly reduce associated health costs. 

If these issues are considered to be important and the interest in Stevia is positive, the 

introduction of Stevia and Stevia-based products into New Zealand should be done, if 

possible, following a Product development Process. This enables the carefully planning 

of each of the stages and follows a pattern that will permit successful implementation. 

In this respect, the researcher summarised what was found about the Product 

Development Process and has presented it below. 

2.9. Product Development Process 

Considering that one of the objectives of this thesis is to "describe a possible Product 

Development Process for Stevia and Stevia-based products", and that one of the 

research questions is "What product development process would work best to analyse 



CHAPTER TWO 39 Literature Review 

the potential commercialisation of Stevia and Stevia-based products in New Zealand?"; 

it is considered that one of the theoretical frameworks that will guide the research is the 

Product Development Process. 

Buisson and Reid (1996) define the new product development process as the 

involvement of activities and decisions from the time an idea is generated until the 

product is sold; a model is useful for controlling the various activities involved in the 

development of a new product, and provides a skeleton around which each project 

manager can build a critical path for development. 

Perkins (1997), states "The Product Development Process (PDP) is essentially the 

conception, development, testing and commercialising of products". To understand this 

definition better it is worth defining "Product". In The American Heritage (2000) a 

product is defined as "Something produced by human or mechanical effort or by a 

natural process". In this sense it can be seen that Stevia is included in what people call 

product. 

West (1980), relates the PDP to particular firms, but further adds that the PDP can also 

involve changes to the "technology and/or the market". In the case of this project a 

Wests' second situation applies, as Stevia, a widely recognised product elsewhere 1s 

new to the New Zealand market. 

The use of a development process that is systematic and well planned, allows a product 

to be developed completely, ensuring all details are not overlooked (Perkins, 1997). 

According to Kerr ( 1994, p.1) "the aim of the product development process is to 

coordinate development activities, optimise the product's market potential and reduce 

the inherent risk of developing new products". 

Stevia plants and Stevia-based products are known and used in many countries, as 

substitutes for traditional sweeteners (sugar, honey, artificial sweeteners, etc.). 



CHAPTER TWO 40 Literature Review 

Before proceeding with a description of PDP, it is worth considering the case of 

Paraguay's Stevia industry which has developed in a haphazard rather than planned 

fashion3 way. 

2. 9.1. Paraguayan Product Development Process 

During a Home Located Research in Paraguay, the researcher wanted to find out what 

Product Development Process was utilised and designed in the country of origin of 

Stevia, to use it as an example for the New Zealand situation. However, there was no 

such process neither designed nor described. All interviewees supplied some 

information about Stevia's situation in Paraguay, with which a Stevia development 

process was designed and is shown below: 

I . Paraguayan aborigines used Stevia as a sweetener for centuries. Colonisers 

found out about that when getting together with the Guarani Indians ( Jordan 

Molero, 1984) 

2. Stevia was classified scientifically (Bertoni, 1905) 

3. In the l 970's it was suggested that Stevia should be a commercial crop, 

considering Paraguay's advantages. But nothing significant was done about it 

(Jordan Molero, 1984). 

4. In the l 990's the crop emerged again but then enthusiasm disappeared (ABC, 

1992) until the year 2000. 

5. Around the year 2000, particular businessmen showed an interest in Stevia and 

began a movement to develop the crop. A PDP was put in place (by the 

CAP ASTE), and although there was popular use of it, the development of Stevia 

as a commercial product failed. The PDP followed is descnbed below: 

5.1. Opportunity Identification: there was a herb with innumerable properties 

which grew wild in Paraguay and was produced commercially in other countries 

with seeds and seedlings taken from Paraguay. There was also a demand for 

Stevia, but there was no supply. 

3 Information for this section was collected by the researcher in semi formal interviews to Stevia industry members in Paraguay. 



CHAPTER TWO 41 Literature Review 

5.2. Concept Screening: see in what forms Stevia was being commercialised and 

try to do the same. 

5.3. Business Analysis: they analysed the production and commercialisation and 

concluded it was worth giving it a try. 

5.4. Product Development: production is the main activity (so until now all of it 

is sold as dried leaves), but industrialisation is in process. 

5.5. Commercialisation: select markets that are willing to pay for quality. 

Commercialise the product in the form buyers want it. 

5.6. Other process activities (regulatory approval, registration, patent process, 

etc.): they created the Paraguayan Chamber of Stevia (CAP ASTE) to follow up, 

give technical support to producers, sell the products to different markets, 

support research, etc. 

A process model is necessary for planning, organising and controlling the activities and 

stages invo lved in the development of a new product or an existing product for a new 

market. Ideally the development of every product will include a ll the stages or at least 

most of them, but in reality the type and quantity of research in each stage varies 

between product and project (Schaffner et al., 1998). If no development process is 

followed, the pre-2000 Paraguay situation could be repeated. 

2. 9.2. Product Development Approaches 

Since the use of Stevia and its products is not a new concept for the market (hence for 

most New Zealanders they are) as new products would be, the product development 

process for them will differ from those called traditional processes. The traditional 

processes vary a little from each other depending on the author, situation and product, 

but at the end follow the same objective: introduce a product successfully into a market 

with the acceptance of the consumers. 

To identify what product development process will fit best for the Stevia project in New 

Zealand, and then describe it, it is useful to analyse and compare different approaches 

used for the PDP. 



CHAPTER TWO 42 Literature Review 

The first table (Table 2.7.) compares four approaches that classify their processes into 

steps. The processes are similar but authors use different names and some identify the 

various steps. In Table 2.8. the basic steps that can be identified in all four approaches 

are: a) idea or project identification; b) concept development and evaluation; c) product 

development; and d) testing and launch. 

Table 2.8. Different Product Development Process Approaches 

Traditional Product New Product Research New Product The Product Development 
Development Process (Aaker et al., 1995) Development Process Process (adapted from 
(Bartol et al.,2001) (Page, 1993) Rudolph, cited in 

Schaffner et al., 1998) 
I .Opportunity I. Generating new I . Concept Search I. Project Set-up 

Identification product concepts: 
2. Concept Screening 

- concept generation 
- need identification 
- concept 

identification 2. Product idea ~cneration 
and screening J 

2. Concept 2. Evaluating and 3. Concept Testing 
,, 

Development 
developing concepts 4. Business Analysis 

3. Product Design 3. Evaluating and 5. Product 3. Product Design 

4. Process Design 
developing actual Development 4. Product Testing 
product 6. Product use testing, 5. Production and 

field testing, and/or Marketing development 
market testing 

5. Commercial 4. Testing the 7 .Commercialization 6. Product launch 
Production marketing program 8. Other process 7. Post launch review 

activities (regulatory 
approval, registration , 
patent process, etc.) 

The second table (Table 2.9.) on the other hand, first classifies the activities under three 

main areas: pre-development (activities which occur up until the actual technical trial 

development of the product or process), development (actual technical and marketing 

development) and conunercialisation (market launch). Both tables however differ m 

some of their steps, but coincide in some other activities.