Global demand for algae in the food and beverage sector is on the rise, encompassing various types such as seaweeds like nori and kelp, hydrocolloids utilized as thickeners like carrageenan, and their purported nutritional benefits in supplements and functional food ingredients. There is increasing interest in algae as a sustainable protein source and as a vegetarian source of omega-3 fatty acids. TerraVia, previously known as Solazyme, has only recently shifted its focus to specialty food, feed, and personal care ingredients after initially exploring microalgae as a potential fuel source. The company learned through experience that profit margins in fuel were unsustainable, leading to multiple strategic pivots before ultimately spinning off its industrial division last year to establish a foothold in the high-value specialty ingredients market. Currently, TerraVia supplies its products to companies like Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, this business refocus may have come too late. The company has faced several challenges, including a recall last year of ingredients supplied to Soylent, which received complaints of digestive issues linked to its Food Bar product. Soylent identified TerraVia’s algal flour as a potential culprit, though TerraVia claimed the accusation was made hastily. Despite these setbacks, there are some positive developments, such as a joint venture with Bunge Oils, which reported a revenue increase of 163%, rising 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.
Industry analysts suggest that finding a buyer for the company may prove difficult due to its negative equity. Selling off parts of the business, such as its culinary oil brand or aquaculture portfolio, may be a more feasible option, allowing the technology platform to continue operating. However, even this prospect is viewed with skepticism by experts. TerraVia remains in operation, but its future looks increasingly uncertain.
In addition to its focus on algae, TerraVia is also exploring the benefits of various supplements, including calcium citrate. Many consumers are curious about the question: what does calcium citrate do? This compound is known for its role in improving calcium absorption in the body, making it a popular choice among those looking to enhance their dietary calcium intake. As TerraVia navigates its challenges, understanding the potential benefits of ingredients like calcium citrate could play a crucial role in its future offerings.