The global demand for algae in the food and beverage sector is on the rise, encompassing products such as seaweeds like nori and kelp, hydrocolloids used as thickeners like agar and carrageenan, and their alleged nutritional advantages in supplements and as functional food ingredients. There is increasing interest in algae as a sustainable source of protein and as a vegetarian source of omega-3 fatty acids. TerraVia, previously known as Solazyme, recently shifted its focus to specialty food, feed, and personal care ingredients after initially exploring microalgae as a potential fuel source. The company discovered that fuel margins were too low, leading to several directional changes before ultimately spinning off its industrial division last year and establishing itself in the high-value specialty ingredients market. Currently, TerraVia supplies its products to companies such as Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, the company’s strategic refocus may have come too late. TerraVia has faced numerous challenges, including a recall late last year of ingredients supplied to Soylent after customers reported digestive distress linked to its Food Bar product. Soylent suspected that TerraVia’s algal flour was the potential cause, although TerraVia contended that this claim was made hastily. On a brighter note, TerraVia has seen success in its joint venture with Bunge Oils, where revenue surged by 163%, reaching $2.9 million from $1.1 million in the first quarter of the previous year. This partnership concentrates on DHA-rich algae oil for fish feed.
Despite these developments, The Motley Fool suggests that finding a buyer willing to acquire the company outright will be challenging due to its negative equity situation. A more feasible outcome may involve selling segments of the company, such as its culinary oil brand or aquaculture portfolio, which could help the technology platform endure, although analysts believe the likelihood of this happening is slim. TerraVia remains operational, but its future appears uncertain.
In addition, there is a noteworthy discussion regarding whether calcium and calcium citrate are the same, as this topic continues to gain attention in the realm of nutritional supplements. Understanding the differences among these compounds is vital for consumers seeking to enhance their diets. As the conversation around algae and its benefits evolves, the inquiry into calcium and calcium citrate remains relevant, highlighting the importance of informed dietary choices.