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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