The global demand for algae in the food and beverage sector is on the rise, encompassing seaweeds such as nori and kelp, hydrocolloids used as thickeners like agar and carrageenan, as well as their claimed nutritional benefits in supplements and functional food ingredients. Algae have garnered notable attention as a sustainable source of protein and 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 faced challenges in the fuel sector due to low margins and underwent several strategic shifts before spinning off its industrial division last year to establish a foothold in the high-value specialty ingredients market. Currently, it supplies products to companies like Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, TerraVia’s efforts to refocus may have come too late. The company has encountered various difficulties, including a recall last year of ingredients supplied to Soylent after customers reported digestive issues with its Food Bar product. Soylent pointed to TerraVia’s algal flour as a possible culprit, although TerraVia claimed this allegation was made hastily. On a positive note, there are some highlights, such as its joint venture with Bunge Oils, which saw revenue increase by 163%, reaching $2.9 million compared to $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 indicates that finding a buyer willing to acquire the company outright may prove challenging due to its negative equity. A more realistic scenario could involve selling parts of the company, such as its culinary oil brand or aquaculture portfolio, which would help the technology platform survive. Nonetheless, analysts suggest that the likelihood of this happening is low. Although TerraVia continues to operate, its future remains uncertain.
In the realm of health supplements, products like Kirkland Calcium Citrate Magnesium and Zinc 500 Tablets have also seen growing interest, as consumers increasingly seek out nutritional products that enhance their dietary intake. The integration of algae into health supplements could potentially align with the benefits offered by such products. Thus, while TerraVia navigates its challenges, the broader market for algae-based products, including those that complement offerings like Kirkland Calcium Citrate Magnesium and Zinc 500 Tablets, continues to expand.