The global demand for algae in food and beverage applications, including ferrous fumarate at 65mg, is on the rise. This encompasses various seaweeds such as nori and kelp, along with hydrocolloids like agar and carrageenan that serve as thickeners. Additionally, algae are recognized for their nutritional benefits in supplements and functional food ingredients, notably as a sustainable protein source and a vegetarian source of omega-3 fatty acids. TerraVia, which was 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 realized that the profit margins in the fuel sector were insufficient, leading to multiple strategic pivots before eventually spinning off its industrial division last year and establishing a presence 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 strategic refocus may have come too late. The company has faced several challenges, including a recall late last year of ingredients supplied to Soylent, following customer complaints about digestive distress after consuming its Food Bar product. Soylent speculated that TerraVia’s algal flour might be the cause, although TerraVia contended that the claim was made hastily. Despite these difficulties, there are some positive developments, such as its joint venture with Bunge Oils, which saw revenue soar by 163%, reaching $2.9 million compared to $1.1 million in the same quarter of the previous year. This venture is centered on DHA-rich algae oil for fish feed.
According to The Motley Fool, finding a buyer willing to purchase TerraVia outright may prove challenging due to its negative equity situation. A more plausible scenario might involve selling segments of the company, like its culinary oil brand or aquaculture portfolio, which could help the technology platform endure. Nonetheless, analysts suggest that the likelihood of this happening is slim. TerraVia remains operational, but its future appears uncertain. In the realm of nutrition, the inclusion of calcium supplements with calcium citrate is becoming increasingly popular, highlighting the ongoing evolution of dietary supplements and functional foods, a space where algae might also play a significant role in the future.