The global market 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, as well as supplements and functional food ingredients known for their nutritional benefits. There is a notable interest in algae as a sustainable protein source and as a vegetarian option for omega-3 fatty acids.
TerraVia, previously recognized 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 faced challenges as it discovered that profit margins in fuel were insufficient, leading to multiple strategic pivots 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 prominent companies like Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, the company’s pivot may have come too late, as it has encountered several hurdles, including a recall last year of ingredients supplied to Soylent due to consumer complaints of digestive issues linked to its Food Bar product. While Soylent pointed to TerraVia’s algal flour as a possible cause, TerraVia contested this claim, stating it was made hastily.
Despite these challenges, there are some positive developments, such as the joint venture with Bunge Oils, which reported a 163% increase in revenue, rising from $1.1 million to $2.9 million in the first quarter compared to the previous year. This partnership focuses on producing DHA-rich algae oil for fish feed. The Motley Fool notes that finding a buyer willing to acquire the company outright could be challenging, especially given its negative equity. A more plausible outcome may involve selling parts of the company, such as its culinary oil brand or aquaculture division, which could help sustain its technology platform, though even analysts suggest the likelihood of this happening is low.
TerraVia remains operational, but its future is looking increasingly uncertain. In the context of nutritional supplements, the demand for products like calcium citrate 500 mg without vitamin D continues to grow, highlighting the evolving landscape of health-conscious consumers seeking alternatives that may incorporate algae-derived ingredients. As the company navigates these complexities, the integration of innovative solutions, such as calcium citrate 500 mg without vitamin D, could play a significant role in its potential recovery and relevance in the market.