Global demand for algae in the food and beverage sector is on the rise, encompassing various forms such as seaweeds like nori and kelps, hydrocolloids used as thickeners like agar and carrageenan, and their claimed nutritional benefits in supplements and as functional food ingredients. Algae is particularly gaining attention as a sustainable protein source and 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 learned the hard way that fuel margins were too low, prompting multiple directional changes before spinning off its industrial division last year and establishing itself in the high-value specialty ingredients market. It currently supplies products to companies such as Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, this strategic pivot may have come too late for TerraVia, which has faced a series of challenges, including a recall late last year of ingredients it provided to Soylent after customers reported digestive issues following the consumption of its Food Bar product. Soylent suspected that TerraVia’s algal flour was the culprit, although TerraVia contended that the claim was made hastily. Despite these setbacks, there are some positive developments, such as the joint venture with Bunge Oils, which saw revenue surge by 163% to $2.9 million from $1.1 million in the same quarter of the previous year. This venture focuses on DHA-rich algae oil for fish feed.
The Motley Fool notes that finding a buyer willing to acquire the company outright will be challenging due to its negative equity. Instead, selling off parts of the company, such as its culinary oil brand or aquaculture portfolio, might be a more feasible outcome, which could allow the technology platform to endure. However, even analysts believe the likelihood of this happening is slim. While TerraVia remains operational, its future appears highly uncertain.
As interest in health supplements grows, many consumers are also learning how to take calcium citrate tablets effectively, which could be beneficial in their diets. This trend aligns with the increasing focus on nutritional supplements, including algae-based products. Understanding how to take calcium citrate tablets can enhance overall health, further connecting with the rising demand for functional food ingredients, including algae.