BGG & Solix Algredients combine to expand functional ingredient NPD and portfolio
18 May 2018 --- BGG and Solix Algredients, Inc. have joined forces to form a new company supplying functional ingredients originating from three sectors: algae, fruits and plants. The new company hopes for particular strength in innovative product combinations and the natural astaxanthin market. The portfolio will include natural astaxanthin, DHA Omega-3 fatty acids, Vitamin E tocotrienols, apple polyphenols and fruit/berry extracts for the food/beverage, personal care and feed markets.
“One of the benefits of this deal is that it positions BGG, Algae Health Sciences (a subsidiary of BGG) & Solix Algredients to accelerate growth across multiple product categories. By leveraging our combined strengths, we see strong growth in the dietary supplements and nutritional/sports beverage segments,” Charlie Bowman, Managing Director of the new company, tells NutritionInsight.
“The combination is effective immediately. We expect to be fully operational within a few months. Upon completion of the new company transition, these business entities will be one unified, newly named company.”
Essential company synergies create space for NPD
“We have a robust R&D pipeline of health and wellness ingredients. A number of exciting additions are in the works, especially with the omega-3 fatty acids sector,” Bowman tells NutritionInsight.
“Our new company has a unique leadership position in both water and fat-soluble antioxidants. This enables us to develop tailored health solutions for our customers that can differentiate their brands. We’re excited about this synergy.”
The combination allows the company to offer more than a dozen functional ingredients that match consumer demand.
“Our portfolio of natural extracts and functional ingredients is well-aligned with current and emerging consumer demand. We are strongly positioned to support our global customers' business and marketing strategies, and are excited to work together,” Bowman adds.
microalgae farm in Southwest China
They are also, states Bowman, very well positioned to respond to consumer trends: “it’s in-sync with our customers’ marketing/business strategies. We’re talking about established trends and expectations such as health & wellness, natural, non-GMO, vegetarian/Vegan, Transparency, and the 'clean label' movement philosophy.”
The natural astaxanthin portfolio is also expected to receive a solid boost from the combination. Bowman lists five beneficial supply chain factors:
- “We control the entire natural astaxanthin raw material supply chain meaning customers benefit from both market-leading quality and value.”
- “We do this with our state-of-the-art 80+ acre microalgae farm in Southwest China (Shilin, outside of Kunming City in Yunnan Province).”
- “We are environmentally responsible.”
- “Our algae growing and biomass production facility uses pure water from the Tibetan plateau in the Himalayan Mountains.”
- “We use natural sun power, not artificial growing lights, nor any form of synthetic biology.”
NutritionInsight has previously reported on the European market growth of natural astaxanthin.
Charlie Bowman has been appointed Managing Director of the new company, while he previously held the Chief Commercial Officer position at Solix Algredients. He brings extensive international and functional ingredient expertise in biotechnology, microalgae and hydrocolloids from leadership roles at CP Kelco, Solazyme, and Cargill.
By Laxmi Haigh
