SOUTH SAN FRANCISCO, Calif.--(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.
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.