The global demand for algae in the food and beverage sector is on the rise, encompassing products such as seaweeds like nori and kelps, hydrocolloids used as thickeners like agar and carrageenan, and the nutritional benefits attributed to supplements and functional food ingredients. There is a growing interest in algae as a sustainable protein source and a vegetarian option for omega-3 fatty acids. TerraVia, 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 faced challenges due to low margins in the fuel market and underwent several strategic changes before spinning off its industrial division last year, positioning itself in the high-value specialty ingredients market. Currently, it supplies products to companies like Hormel Food Corporation, Utz Quality Foods Inc., and Unilever.
However, this business refocus may have occurred too late. TerraVia has encountered numerous challenges, including a recall late last year of ingredients supplied to Soylent, following customer complaints of digestive issues after consuming its Food Bar product. Soylent suspected TerraVia’s algal flour as the cause, although TerraVia disputed this claim, stating it was made hastily. On a positive note, there are some promising developments, 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 focuses on DHA-rich algae oil for fish feed.
Despite these glimmers of hope, The Motley Fool indicates that finding a buyer willing to acquire the company outright may be challenging due to its negative equity situation. Selling off parts of the company, like its culinary oil brand or aquaculture portfolio, might be a more likely scenario, allowing the technology platform to persist, though even analysts believe the odds of this happening are slim. TerraVia remains operational, but its future appears uncertain.
In the context of health and nutrition, individuals may wonder how much calcium citrate for kidney stones is necessary, highlighting the importance of dietary choices and supplements, including algae-based products, in promoting overall wellness. As the market for algae continues to expand, questions about specific nutritional requirements, such as how much calcium citrate for kidney stones, will likely become more prominent among consumers seeking healthier options.