Food Business News - April 19, 2016 - (Page 50)

Nature's perfect Protein Visit us at Ingredient Marketplace Booth #F47 For product and application information on whey proteins contact info@DaviscoFoods.com. 7500 Flying Cloud Drive, Suite 250A Eden Prairie, Minnesota 55344 1-800-757-7611 www.DaviscoFoods.com 50 F B N ©2016 Agropur OOD inc. (Davisco Unit). All rights reserved. USINESS Business EWS® Algae venture to invest in or buy food companies SAN FRANCISCO - A new venture will seek to incorporate algae into existing food and beverage products by first investing in or acquiring manufacturers of those products. VMG Partners, a private equity fund, and TerraVia, a supplier of algae-based ingredients, on April 5 said they had launched the venture, called TerraBrands. "It's basically a partnership to develop consumer-branded, algae-based foods," said Jonathan S. Wolfson, founder and chief executive officer of South San Francisco-based TerraVia, formerly known as Solazyme. Leaders of TerraBrands include Mr. Wolfson; Keith C. Belling, founder and former c.e.o. of popchips; and Michael L. Mauzé, managing director of VMG Partners. TerraBrands will target established lower middle-market companies in the food, pet and nutrition segments. "It's really to look at established companies that have a shelf position (at retail) and positive cash flow," Mr. Belling said. "We're looking for existing businesses that already have shown some level of success that we think we then can take to the next level." TerraBrands will consider three factors when choosing which companies to invest in or possibly acquire, said Kara M. Cissell-Roell, managing director of VMG Partners. First, a business must be established, or have shown what she called "proof of concept." Second, the business must have a passionate consumer base. "You need to have a good platform on which to bring these ingredients and accelerate the brand growth," she said. Finally, the business must show interest, both in algae as an ingredient and in a potential investment from TerraBrands. VMG Partners previously invested in Kind, Pretzel Crisps and Pirate's Booty. "What TerraBrands is, is a shot across the bow to demonstrate to people that the time for algae as a mainstream food ingredient is here," Mr. Wolfson said, "VMG is one of the leaders in the world at identifying emerging food trends, and beverage and nutrition trends, and the proof is in the investments they've already made." Mr. Belling has advised TerraVia for almost two years. He is still chairman of popchips. "He's a category creator with a lot of the healthy snacking work that he's done," VMG Partners and TerraVia plan to incorporate algae into existing products by first investing in or acquiring manufacturers of those products. Mr. Wolfson said of Mr. Belling. "He's also a brand builder and a marketing genius." Mr. Belling said he and Mr. Wolfson both think of algae as the original super food. "It really hits on taste, nutrition and sustainability in a way that I have not seen in the marketplace," Mr. Belling said. Algae-based ingredients may serve as a source of plant protein or as a source of healthy fat, Mr. Wolfson said. "We can infuse existing products from existing companies with our ingredients to dramatically improve nutrition and in many cases dramatically improve taste and texture," he said. TerraVia has been active in the past few months. The company on March 11 said it was changing its name to TerraVia from Solazyme and that it had entered into a definitive purchase agreement for a financing round of about $28 million. VMG Partners is part of that investor group. Ms. Cissell-Roell said working with algae as an ingredient was exciting because it has a history in the food chain and is not made in a laboratory. "It's not about Franken-fooding it," Ms. Cissell-Roell said. "It's a really exciting super food ingredient that has been around since the beginning of time, and we're just on the forefront of bringing it back and making it famous." FBN April 19, 2016 http://www.DaviscoFoods.com

Table of Contents for the Digital Edition of Food Business News - April 19, 2016

Food Business News - April 19, 2016
Fresh, authentic a focus for Unilever
Clash over child nutrition programs may lie ahead
Dairy Business News - Dairy flavors grow ever more creative
Table of Contents
Web Contents
Editorial - Growth of organic category suggests still greater attention ahead
Monogram Foods acquires appetizer company
‘Premiumization’ opportunities abound
Preferred Popcorn picks up organic popcorn maker
Wal-Mart to transition to cage-free eggs by 2025
AdvancePierre Foods files for i.p.o.
Dr Pepper Snapple increases sports nutrition stake
Hormel Foods launches clean label effort
Identifying the X-factor in food startups
Food service operators betting big on buns
ConAgra Foods earnings reflect focus on execution
Mondelez to partner with e-commerce firm Alibaba
Modern Table planting the seeds of a trend
Market Insight - Dairy still under pressure
Company Profile - Flowers focused on improved margins
Flavor Trends - The next level for dressings, sauces and marinades
Ingredient Innovations - Fiber's global reach
Ingredient suppliers emphasize specialized fibers
Algae venture to invest in or buy food companies
New Food Products
Ingredient Market Trends - Large supplies will weigh on grain and oilseeds prices into next year
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - April 19, 2016

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