PureCircle warns on profit amid US border dispute over stevia

PureCircle's shares are down almost 13% after it warned its full-year sales and profit could be hurt by a US border authorities' detention order affecting its stevia shipments.

US Customs and Border Protection (CBP) has issued the order based on an allegation the shipments contained products made using forced labour, PureCircle said.

The producer and marketer of high-purity stevia ingredients said the claim was inaccurate, stating the company was committed to human rights and the proper and fair use of labour.

It said it had an explicit policy prohibiting use of prison or forced labour in any part of its business, and that it had been certified by independent auditors to ensure compliance with the Sedex Members Ethical Trade Audit (SMETA).

"In addition, we have confirmed that our product, including the shipments being withheld by US customs, is not sourced from Inner Mongolia Hengzheng Group Baoanzhao Agricultural and Trade LLC, who were also named in the CBP communication," PureCircle said in a statement.

"We have submitted relevant documentation of this, including independent, third-party verification to CBP and are working with them to correct the inaccurate information in the CBP communication and to expedite the release of our shipments."

Nevertheless, PurCircle added that, depending on the duration of the CBP detention order, there "could be some impact on sales and profit in the current financial year."