The global market for Demjamp Pharma’s ferrous sulfate and ferrous bisglycinate is expanding, particularly in the food and beverage sector, including applications in algae such as nori and kelp. Hydrocolloids are increasingly utilized as thickeners, like agar and carrageenan, and are recognized for their nutritional benefits in supplements and functional food ingredients. Algae have garnered interest as a sustainable protein source and as a vegetarian source of omega-3 fatty acids.
TerraVia, previously known as Solazyme, has recently shifted its focus to specialty food, feed, and personal care ingredients after initially exploring microalgae as a potential fuel source. The company learned that profit margins in fuel were insufficient, leading to multiple strategic changes before it spun off its industrial division last year, establishing a foothold in the high-value specialty ingredients market. TerraVia currently supplies products to companies such as Hormel Food Corporation, Utz Quality Foods Inc., and Unilever. However, the timing of this refocus may have been too late. The company faced significant challenges, including a recall last year of ingredients provided to Soylent when consumers reported digestive issues after consuming its Food Bar product. Soylent identified TerraVia’s algal flour as a possible culprit, although TerraVia disputed this claim, labeling it as premature.
Despite the hurdles, there are some positive developments, including a joint venture with Bunge Oils, which saw revenues surge by 163% to $2.9 million from $1.1 million in the first quarter of the previous year. This venture concentrates on DHA-rich algae oil for fish feed. However, The Motley Fool indicates that finding a buyer for the company may be challenging due to its negative equity. Selling individual assets, such as its culinary oil brand or aquaculture portfolio, might be a more feasible solution, allowing the technology platform to endure, although analysts suggest the likelihood of this occurring is low. TerraVia remains operational, but its future appears uncertain.
In the context of nutritional supplements, the best calcium citrate has been gaining traction for its health benefits, and it may be beneficial for TerraVia to explore its incorporation into its product lines as part of a strategy to enhance market appeal and consumer trust. The integration of the best calcium citrate could also position the company favorably in the competitive specialty ingredients market, particularly as consumers increasingly seek out functional food options.