TerraVia (Solazyme) and Unilever Sign Multi-Year Supply Agreement for $200 Million + of Sustainable High Performance Algae Oils
March 14 2016 - 4:05PM
Business Wire
Solazyme, Inc. (Nasdaq:SZYM), now known as TerraVia™, a pioneer
in algae innovation and a food, nutrition and specialty ingredients
company, has signed a definitive multi-year global supply agreement
with Unilever. The five-year agreement provides for Unilever to
purchase renewable algae oils for use in personal care products and
reflects the culmination of more than seven years of collaboration
between Solazyme and Unilever.
This new agreement builds upon Solazyme’s initial supply
relationship with Unilever for renewable algae oils, which Unilever
began incorporating into its products in 2014. These oils are being
produced and delivered to Unilever routinely from the Solazyme
Bunge Renewable Oils facility. This new five-year, multi-oil supply
agreement includes a broad portfolio of oils for use in its
personal care products. Production of these oils will take place at
the Solazyme Bunge Renewable Oils facility in Brazil and pricing
terms are based upon variable production cost plus a defined
contribution margin. Oils purchased under this new supply agreement
are expected to represent total revenue of more than $200 million
over the term of the agreement.
Jonathan Wolfson, TerraVia’s CEO, commented, “Our mission is to
deliver products from algae that are better for people and better
for our planet. We are proud to partner with Unilever, a global
leader in health and wellbeing, whose products touch over 2 billion
people on any given day. The growth of our partnership reflects
over seven years of collaboration during which we have demonstrated
our ability to develop and deliver unique, high performance, and
highly sustainable oils at scale, as we continue our shift to
focusing on higher value products.”
Alan Jope, Personal Care President of Unilever said, “The
decision to use algae oils is fully aligned with the Unilever
Sustainable Living Plan and with our goal to grow the business
while reducing our overall environmental footprint. We have been
working with Solazyme for many years to develop novel ingredients
from algae, which improve the performance and sustainability
profile of our personal care products. Solazyme has already been
delivering consistent, sustainable and high performing algae oils,
and we look forward to this next and greatly expanded commercial
phase of the relationship.”
The Solazyme Bunge Renewable Oils facility in Brazil produces
more oil per hectare/acre with a lower greenhouse gas footprint
than nearly all major commercially available plant oils. The Brazil
facility embodies the principles of sustainable production and is
co-located with a Bonsucro®-certified sugarcane mill that uses the
waste sugarcane material (bagasse) as an efficient, renewable
source of energy.
About TerraVia™
TerraVia™ (formerly Solazyme®), is a next generation food,
nutrition and specialty ingredients company that harnesses the
power of algae, the mother of all plants and earth’s original
superfood. With a portfolio of breakthrough ingredients and
manufacturing, the Company is well positioned to help meet the
growing need of consumer packaged goods and established and
emerging food manufacturers to improve the nutritional profile of
foods without sacrificing taste, and to develop select consumer
brands. The Company also manufactures a range of specialty personal
care ingredients for key strategic partners. Headquartered in South
San Francisco, the Company’s mission is to create products that are
truly better for people and better for the planet. For additional
information, please visit TerraVia’s website at
www.terravia.com.
Solazyme®, TerraVia™, the Solazyme logo and other trademarks or
service names are the trademarks of Solazyme, Inc.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about Solazyme, including statements that involve risks and
uncertainties concerning: the aggregate value of future revenue
under the supply agreement; the timing and ramp-up of sales under
the agreement; expected product development and offering plans; its
transition of corporate identity; and the future production
efficiency, greenhouse gas footprint of the Brazilian facility.
When used in this press release, the words “will”, “expects”,
“intends” and other similar expressions and any other statements
that are not historical facts are intended to identify those
assertions as forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Any such
statement may be influenced by a variety of factors, many of which
are beyond the control of Solazyme, that could cause actual
outcomes and results to be materially different from those
projected, described, expressed or implied in this press release
due to a number of risks and uncertainties. Potential risks and
uncertainties include, among others: Solazyme’s limited operating
history; its limited history in manufacturing and commercializing
products; its ability to successfully transition its corporate
identity; production management risks; implementation risk in
deploying new technologies; its limited experience in constructing,
ramping up and operating commercial manufacturing facilities; its
ability to successfully develop and commercialize products; its
ability to sell its products at a profit; delays related to ramp-up
and optimization of production facilities; availability of
consistent, reliable power and steam; its ability to manage costs;
its ability to enter into and maintain strategic collaborations;
successful product trials by its customers and market acceptance
and adoption of its products by end-users; its ability to obtain
requisite regulatory approvals; and its access, on favorable terms,
to any required financing. Accordingly, no assurances can be given
that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
impact they will have on the results of operations or financial
condition of Solazyme.
In addition, please refer to the documents that Solazyme, Inc.
files with the Securities and Exchange Commission, including its
Quarterly Reports on Form 10-Q and Annual Report on Form 10-K, as
updated from time to time, for a discussion of these and other
risks. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. Solazyme is not under any duty to update any of the
information in this press release.
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Solazyme, Inc.Corporate Communications:Genet
Garamendiinfo@terravia.compress@solazyme.com