Solazyme’s AlgaWise algae oils trialed by ‘several’ global food and beverage companies, says CEO

02-Aug-2015 - Last updated on 31-Jul-2015 at 17:45 GMT

Solazyme algae oils on show at the 2015 IFT annual meeting and expo in Chicago

Several leading food and beverage companies are now trialing Solazyme’s new high-oleic AlgaWise algae oils, while the egg shortage and the FDA’s final determination on partially hydrogenated oils have also boosted demand for the firm’s AlgaVia whole algal flour and proteins, says the firm.

San Francisco-based Solazyme - which posted a net loss of $31.7m on revenues of $11.7m in the second quarter – said its high-performance algae-based lubricant for oils drilling (Encapso) was “experiencing longer than anticipated sales cycles due to lower petroleum prices and substantially reduced rig counts”, but said the food side of the business showed great promise.

On a call with analysts on Thursday, CEO Jonathan Wolfson pointed to a “growing number of application projects in process with a range of food and beverage manufacturers from leading multinationals to regional and national brands”.

He added: “Early signs for these [AlgaWise high-oleic algae] oils into food are very positive and we have already been selected for plant trials by several leading global food and beverage companies across multiple categories. We expect these [to move into the] final phase [in the] coming months.

“Additionally this past quarter saw an exciting new beverage company prepare to launch its meal replacement product with AlgaWise oil and it specifically chose the oil for its clean taste and superior sustainability and nutritional profiles.”

Interest was also building in the AlgaVia whole algal flours and proteins, he said: “For our protein and lipid powders we continue to see both early adopters and larger multinational brands attracted to the ingredients for food applications such as beverages, bakery and dressings.

“Specifically this quarter we saw a division of a major multinational company launch a series of baking mixes using the AlgaVia protein and even more recently we started shipping our first lipid powder orders to customers seeking egg replacements, which could see more meaningful sales develop later this year and into next. In all we continue to see a strong pipeline for future product launches across the dietary supplement and food and beverage channels.”

All of Solazyme's food ingredients have been the subject of ‘no objections’ letters from the FDA to their GRAS (Generally Recognized as Safe) determinations.

Watch our video with Solayme at the recent IFT show in Chicago below: