🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Brazil probes California firm for 'biopiracy' of tropical fruit açaí

Published 12/06/2018, 21:53
Updated 12/06/2018, 22:00
© Reuters. FILE PHOTO: Baskets of acai berries sit on a truck waiting to be taken to market in Abaetetuba
AMZN
-

By Anthony Boadle

BRASILIA (Reuters) - Brazilian prosecutors said on Tuesday that they were investigating a U.S. company for alleged 'biopiracy', accusing it of illegally using genetic components of the tropical berry açaí in nutritional supplements it sells.

The federal prosecutors office for the northern state of Amapá, a main producer of açaí, said that the company Sambazon Inc had used the genetic material of the fruit without permission.

Biopiracy is the unlawful appropriation or commercial use of biological materials, such as medicinal plant extracts, that are native to a particular country without providing fair financial compensation to its people or government.

Sambazon representatives in Brazil and its headquarters in California did not immediately reply to requests for comment.

Privately-held Sambazon makes fruit juices, fruit packs, frozen desserts and snacks, powders and energy drinks based on açaí imported from Brazil, the company's website says.

Rich in antioxidants and amino acids, açaí is thought to be one of the most nutritional fruits of the Amazon (NASDAQ:AMZN) basin and has become a favourite for health-conscious Californians.

It was not immediately clear why the prosecutors were pursuing Sambazon and not other international marketers of açaí, but the company is one of the largest and longest-running, and makes nutritional supplements rather than just simpler beverages.

In 2012, the Brazilian government's environmental agency Ibama fined Sambazon 75,000 reais (about $40,000 at the time) for not obtaining permission to use the genetic material of açaí for the purposes of technological development.

In its defence, the company said its products were made by simply adding ingredients to açaí fruit pulp.

The new investigation seeks compensation for the communities that produce açaí in the Amazon rainforest in Amapá state, from where Sambazon imports the fruit, the prosecutors office said in a statement emailed to Reuters.

It said Sambazon had failed to obtain authorization from the council for the management of Brazil's genetic biodiversity.

Founded in 2000, Sambazon began by processing açaí into packs of frozen pulp mixed with guaraná, another berry from the Amazon that contains natural stimulants, and selling it to juice bars and fitness clubs in Southern California.

© Reuters. FILE PHOTO: Baskets of acai berries sit on a truck waiting to be taken to market in Abaetetuba

Açaí smoothies supplanted wheatgrass protein shakes as the drink of choice among athletes and body builders. Sambazon now sells its products in grocery stores across the United States.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.