Responding to a strong demand for more sustainable and transparent cane sugar supply chains, Raízen and ASR Group have partnered in this world first: Through a unique and dedicated farming, bioenergy parks and infrastructure operation, Raízen has created a 100% physically traceable and non-genetically modified supply chain. In return, ASR Group is making an investment and long-term purchasing commitment to Raízen, the proceeds of which will be dedicated to strengthening the sustainability of both companies' supply operations and supply chains.
São Paulo and West Palm Beach, FL /PRNewswire/ - Raízen, the world's largest sugar exporting company, and ASR Group, the world's largest refiner and marketer of cane sugar, announce a partnership that sets the standard for sustainable raw cane sugar supply chains globally. The unprecedented multi-year agreement between the partners creates the world's first fully physically traceable and 100 percent non-genetically modified (non-GM) certified supply chain. The partnership stretches from Raízen's sustainably certified sugarcane farms and bioenergy parks in Center-South Brazil, all the way to supporting the well-loved brands that make up ASR Group's cane sugar consumer products in North America and Europe.
Supported by an investment and a 10-year purchasing commitment from ASR Group, Raízen has developed unique processes, infrastructure, and technological solutions to track raw cane sugar from their farms and bioenergy parks – where the sugarcane is milled to produce raw sugar and biofuels – and segregate the final raw sugar through to a dedicated port terminal facility for export. In addition to carrying non-GM status, Raízen also ensures that the raw cane sugar meets the highest global ethical and environmental standards.
The first shipments of raw cane sugar under the new partnership are running through a dedicated export facility contracted by Raízen at the Port of Paranaguá in Paraná State, Brazil. During the first year of the partnership, ASR Group's cane sugar refineries in Canada, the United Kingdom, Portugal, and Italy will receive deliveries as part of the supply chains of ASR Group's local brands, including Redpath®, Tate & Lyle®, Lyle's®, and Sidul®. Future shipments to ASR Group's refineries in the United States and its Domino® and C&H® brands are also being considered.
"This partnership marks a new chapter in global sugar traceability," said Paulo Neves, Vice President of Trading at Raízen. "By segregating our operation, this initiative enables us to measure the full impact and footprint reduction in our supply chain more accurately. This certification enables us to confirm, through a third-party audit, the absence of GM sugarcane in our entire process, increasing the value of the product to customers who seek this type of sugar. We want to offer another alternative to this market."
The premium that ASR Group will pay for the raw cane sugar will be re-invested by Raízen to continue to further both companies' ESG targets. This will include projects looking at improving land productivity, reducing greenhouse gas (GHG) emissions through operational efficiency and innovation, increasing water circularity, and other sustainability initiatives.
Alan Wood, ASR Group's Senior Vice President of Global Sugars, said, "This partnership between ASR Group and Raízen represents a big and important investment by both of us in our commitments to be the most sustainable sugar companies in the world. We are paying a premium for this sugar and are excited that this will be re-invested back into even more sustainability projects by Raízen. We're confident this will give our customers, as well as the thousands of people working in our own businesses, great pride that the supply chains they are a part of will continue at the cutting edge of reducing their impact on people and the planet."
The traceability of the whole chain is independently certified by FoodChain ID, an international leader in standard-setting and certification of food supply chains. The company has more than 20 years experience in creating secure and certified supply chains across the industry, working with agriculture, food brands, and food and drink retailers. Raízen is the first company in the sugar and energy sector to earn the certification for non-GM sugar. FoodChain ID has supported ASR Group for more than 10 years with verification and certification work in its global raw cane sugar sustainability program.
The bioparks involved in the process are located in the hubs of Piracicaba, Araçatuba, Andradina, Brotas, Araraquara, and Assis, and are part of the certified structure that covers Raízen's 15 bioenergy parks.
We are Raízen – a global benchmark in bioenergy with an integrated business ecosystem: from the cultivation and processing of sugarcane in our bioenergy parks, to the sales, logistics and distribution of fuels, we continually invest in innovation to reshape the future of energy.
Through advanced technologies, we seek to play a leading role in the energy transition by expanding our portfolio of renewable energy sources, such as second-generation ethanol (2GE), biogas, bioelectricity and solar energy. By doing so, Raízen has already avoided the emission of 5.2 million tonnes of C02 per year (reference: 2020); by 2030, we aim to avoid twice this amount.
With a team of 40,000 employees, we operate 35 bioenergy parks with an installed sugarcane crushing capacity of up to 105 million tonnes. In the 2020-2021 crop year, they produced 2.5 billion liters of ethanol and 4.4 million tonnes of sugar. We have approximately 1.3 million hectares of agricultural areas that are cultivated with state-of-the-art technology and mechanized harvesting. Our installed power generation capacity is 1.3GW; in the last harvest we produced 2.1 TWh of electricity using sugarcane biomass.
Through a network of 7,300 gas station resellers bearing the Shell brand in Brazil and Argentina, we serve millions of consumers on their daily journeys, offering everything from the exclusive Shell V-Power family of fuels to convenience and benefits when paying with Shell Box. Through Grupo Nós (a joint venture with FEMSA Comercio), we operate in the convenience and proximity retail market with Shell Select stores and OXXO markets.
In the 2020-2021 crop year, we sold 29 billion liters of fuel and 7.3 million tonnes of sugar through our infrastructure that includes 69 airport supply bases, 70 distribution terminals located across the country and operations in 11 ports.
We are one of the largest companies in Brazil in terms of revenue (R$ 114.6 billion in the last crop year); we create jobs and income, drive the economy, and invest in social responsibility via the Raízen Foundation.
About ASR Group
ASR Group International, Inc. is the world's largest refiner and marketer of cane sugar, with an annual production capacity of more than 6 million tons of sugar. The company produces a full line of grocery, industrial, foodservice and specialty sweetener products. Across North America, ASR Group owns and operates six sugar refineries, located in New York, California, Maryland, Louisiana, Canada and Mexico. In Europe, the company owns and operates sugar refineries in the United Kingdom, Portugal, and, with a joint venture partner, Italy. ASR Group also farms sugarcane and owns sugar mills in Mexico and Belize. The company's portfolio includes the leading brands Domino®, C&H®, Florida Crystals®, Redpath®, Tate & Lyle®, Lyle's® and Sidul®. ASR Group is owned by Florida Crystals Corporation and Sugar Cane Growers Cooperative of Florida. ASR Group and its parent companies jointly own Tellus Products, LLC, a maker of compostable tableware and foodservice products from sugarcane and other plant fibers. For more information, visit www.ASR-Group.com.