“I'm even more convinced today that the strategy in 2016 to streamline and focus on food, nutrition and specialty ingredients was the right move for TerraVia,” said Apu Mody, chief executive officer (CEO) of TerraVia, during an earnings call with analysts on March 8. “The unique ability of our ingredients to address the increasing global demand for health and sustainability with plant-based ingredients that can be produced at scale puts us squarely on a path toward creating significant value for all of our stakeholders.”
During 2016, TerraVia launched AlgaPrime DHA, a native whole algae source of omega-3 fatty acids and a sustainable specialty feed ingredient, in partnership with Bunge. The partnership recently grew by shipping the product to Biomar, an aquaculture company. This move helps make AlgaPrime DHA commercially available at scale to salmon farmers and other participants in the aquaculture industry. Over the past six months BioMar has significantly increased deliveries of commercial feed containing AlgaPrime DHA to salmon farmers.
“By leveraging the robust sales and supply chain capabilities of companies like Bunge, Unilever and now BioMar, we believe we can position TerraVia to accelerate commercialization and broaden our distribution while remaining focused on driving innovation and early market adoption of our products,” Mody said. “We reviewed our product portfolio to identify the shortest path to deliver rapid revenue growth and profitability.”
The expanded distribution of AlgaPrime DHA is a large focus for TerraVia in 2017.
“AlgaPrime DHA will play a critical role for us in 2017 and beyond,” Mody said. “The expansion of our relationship with BioMar is a major milestone in what has been a rapid market ramp for AlgaPrime DHA. In six months, BioMar has delivered more than 40,000 tonnes of its salmon feed where they have incorporated Alga Prime DHA to supply salmon farmers. Our ingredient is performing well and BioMar has indicated to us that it has the potential to be a key ingredient in the future of aquaculture. The ingredient is available now to feed formulators throughout the salmon industry and other aquaculture markets for use in a wide variety of feed applications and the stage is set for broader market penetration.”
In 2016, TerraVia sustained a loss of $101.55 million compared to a loss of $141.44 million in the same period of last year. Total revenue for the year ended Dec. 31, 2016, was $18.48 million, down slightly from $22.85 million in 2015.
“2016 proved to be a defining year for TerraVia in streamlining around food, nutrition and specialty ingredients,” Mody said. “The unique ability of our proprietary ingredients to address the growing demand for healthier and more sustainable products is gaining momentum in food, aquaculture, animal nutrition and specialty personal care. We have sharpened our focus around commercialization of several high-potential products that we expect will position TerraVia and the SB Oils JV to achieve accelerated growth and profitability. The AlgaPrime DHA expansion announced with BioMar and Bunge is a key step in that direction.”