Avila is the chief executive of San Clemente-based Ventana Health Inc., the maker of Zsweet – an all-natural, zero-calorie sweetener. Avila's granular product has been in the market for two years, sold in alternative grocers such as Mother's Market and some Costco warehouses.
Now, Coca-Cola and Cargill have said that the two have teamed up to develop a sugar substitute called rebiana, made from a South American herb called stevia. The announcement shook investors of the privately held Ventana, a relative David to two Goliath-size food companies now entering its territory.
"They (investors) wanted to know how it will affect us. But, the bottom line is there is no threat to us," said Avila.
Avila, who concocted Zsweet in his San Juan Capistrano kitchen, talked recently with Register reporter Nancy Luna:
Luna: So, why doesn't the Cargill-Coca Cola partnership worry you? Is it because you don't use stevia?
Avila: It's something we've been aware of for a long time. We don't use (stevia) in Zsweet, because it's not approved for food use.
Luna: But, aren't you looking into using Zsweet in beverages?
Avila: Yes. We've made progress. We have a few beverages about ready to launch with the Zsweet name on it.
Luna: Any brands you can name?
Avila: Not yet. Maybe, by mid-summer. They are artisan, natural diet sodas and organic brands. It would be something that you'd see in Whole Foods.
Luna: How have sales been for Zsweet since you launched it in early 2005?
Avila: We've tripled our sales form 2006 into 2007, and we could do as much 10 times sales in '07. We're gaining distribution. We're in Wild Oats now. We have Ralphs coming online. We're in trials in Costco in the Southeast, but all other regions are becoming interested.
Luna: So, how many outlets?
Avila: 1,000 compared to 200 two years ago.
Luna: What is the most popular use for your product? Coffee, baking?
Avila: Everything. In oatmeal, smoothies, baking. The big message that we have found is (consumers want it) for its low glycemic value because it won't raise blood sugar (levels).
Luna: Were you able to calm fears of investors?
Avila: Yes. This news puts more of a crimp on (the artificial sweeteners such as) aspartame because it shows where the ($1.5 billion) sugar substitute market is going.
Luna: So, this validates everything you've been doing?
Avila: Absolutely. In a big way. We think that this is going to sweep the globe. And apparently, the CEO of Coca-Cola thinks so too.
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