Opportunities in algae: Qualitas lands US$10M for plant-based protein and omega 3 expansion

11 Jan 2021 --- Qualitas Health has landed US$10 million in venture funds at a US$73 million post-money valuation. The algae specialist offers omega 3 products via its Iwi brand and is now set to commercialize plant-based protein by 2022 with the funding. The protein product can be used in bars and shakes.

“Our algae contains both omega 3 and protein. Protein is about 40 percent of the content of the algae. By utilizing both the omega 3 and the protein, we will further advance our sustainability proposition by making full use of the algae,” Miguel Calatayud, CEO of Qualitas Health, tells NutritionInsight.

The investment will also accelerate customer acquisition, deepen clinical research and intellectual property, and speed Iwi’s expansion into geographies beyond the US. 

“This investment will be instrumental to accelerating growth in 2021 as Iwi advances to the industrial pilot stage of our plant-based protein, start the regulatory process and conduct additional clinical studies,” Calatayud continues.

Occupying a new niche
Calatayud maintains that there are no similar omega 3 or plant protein products on the market. “Our omega 3 is connected to polar lipids, greatly increasing bio-availability and protected by significant patents.” 

The protein will also be unique as it has a complete amino chain profile comparable to not only egg and whey but plant-based sources. Calatayud says it also has a good sensory profile.

Qualitas Health produces high-absorption polar lipid EPA omega 3, which is marketed direct-to-consumer and to retailers. Under its Iwi brand, it currently offers 15 supplements, including soft gels and functional gummies.  Qualitas Health is operating via its Iwi brand, which has a strong direct-to-consumer platform and an additional presence in more than 5,000 US retailer outlets.

Zero strain on natural ecosystem
Qualitas grows microscopic algae in cultivation pond systems the size of football stadiums, which are built on non-arable land in the deserts of New Mexico and Texas, US.

The company says that its reliance on saltwater makes its process unique. The sun is the main source of energy, which does not place a strain on the natural ecosystem. This allows Iwi to cleanly cultivate immense amounts of the ancient sea vegetable Nannochrolopsis. 

According to Iwi, this is one of the few plants containing all essential amino acids, plus vitamins, minerals, chlorophyll and essential fatty acids – especially omega 3. 

Qualitas’ process is likely to appeal to increasingly environmentally conscious consumers. According to Innova Market Insights, three in five global consumers are interested in learning more about where their food comes from and how it is made.  

Other movers in the algae space have also been investigating clean production methods. For example, Algalife uses Iceland’s abundance of clean natural water and uses geothermal energy to power its operations. 

A significant milestone
Food-tech investor PeakBridge VC, Malta led this investment round. Other investors include:

• Arancia Group, a privately owned Mexico-based food ingredient and foodservice conglomerate.
• Minrav, the company’s largest investor.
• Additional private investors.

“Qualitas has strong intellectual property, proven scaling capabilities, and tremendous sustainability impact — all of which give Iwi a unique edge within the plant-based nutrition industry,” says Nadav Berger, co-founder and managing partner of PeakBridge.

Calatayud emphasizes that the new investment round is a significant milestone for Qualitas. “Iwi experienced significant growth in 2020 with online sales, and strong sales growth is forecast to continue in 2021.”Nannochrolopsis contains all of the essential amino acids, plus vitamins, minerals, chlorophyll and essential fatty acids.

In 2019, Qualitas Health collaborated with ADM on a line of DHA and EPA blends containing omega 3, 6 and 9. 

Algae blooms
Algae has been at the center of exploration in recent years. According to Innova Market Insights, algae oil featured in 7 percent of food, beverage and supplement launches in 2019 that featured marine oils. 

In October, Allmicroalgae unveiled plans to scale up its algae production to 120 metric tons of raw materials per year by 2022. The same month, Lubrizol Life Science released an algae-based nootropic amid a sharp rise in demand for clean label, brain-enhancing supplements.

Meanwhile, Kemin Industry recently received approvals in the EU and Brazil, allowing its algae-sourced beta-glucan ingredient BetaVia Complete to be placed on both markets. 

By Katherine Durrell