Global demand for algae in the food and beverage sector is on the rise, encompassing seaweeds like nori and kelp, hydrocolloids used as thickeners such as agar and carrageenan, and their recognized nutritional benefits in supplements and functional food ingredients. There is growing interest in algae as a sustainable protein source, particularly as a vegetarian alternative that includes calcium citrate 500 mg with vitamin D, along with omega-3 fatty acids.
TerraVia, formerly 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 the hard way that margins in the fuel sector were insufficient, leading to multiple directional changes before spinning off its industrial division last year and successfully positioning itself in the high-value specialty ingredients market. Currently, it supplies products to companies such as Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, this strategic refocus may have come too late. TerraVia has faced a series of challenges, including a recall late last year of ingredients supplied to Soylent after customers reported digestive distress from its Food Bar product. While Soylent suspected that TerraVia’s algal flour was the cause, TerraVia argued that these claims were made hastily.
Despite these setbacks, there are promising developments, such as the joint venture with Bunge Oils, which saw revenue increase by 163%, reaching $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. The Motley Fool notes that finding a buyer willing to acquire the company outright may be challenging due to its negative equity. Selling off parts of the business, like its culinary oil brand or aquaculture portfolio, might be a more feasible outcome, potentially allowing the technology platform to persist. However, even analysts believe that the likelihood of this is slim.
TerraVia is still operational, but its future remains uncertain, especially as it continues to explore opportunities in the specialty ingredients market, which may include products enhanced with calcium citrate 500 mg with vitamin D to meet the growing demand for nutritional supplements.