Martek supply deals
This article was originally published in The Tan Sheet
Swiss firms Hero Group and Hochdorf Nutricare will use docosahexaenoic and arachidonic fatty acid only from Martek Biosciences in their food products, the supplier says. Hero will add Martek's oils to its infant formula products, weaning foods and medical foods for dietetic purposes, while Hochdorf will market formulas with Martek's ARA in China and Europe. The agreement with Hero is another step to expand Martek's international presence in the infant formula market, says Ethan Leonard, VP of pediatric nutrition for Columbia, Md.-based Martek. The firm also has supply deals with Hero subsidiaries Beech-Nut and Semper, which use DHA and ARA for infant formulas sold in Finland, Latvia, Lithuania and Sweden (1"The Tan Sheet" Aug. 22, 2005, In Brief)
You may also be interested in...
Martek Biosciences' fiscal 2008 fourth-quarter revenues grew 10 percent to $90.4 million based in part on the strength of its international infant formula market growth and launches of products containing its life'sDHA, the Columbia, Md.-based firm announces Dec. 11. The firm's infant formula market grew 7 percent in the quarter ending Oct. 31 as Martek signed deals including an arrangement to supply the Swiss firm Hero Group with docosahexaenoic and arachidonic fatty acids for use in infant formula (1"The Tan Sheet" Oct. 6, 2008, In Brief). Despite increased revenues, net income is down to $10.5 million compared to $18.3 million in the year-ago quarter. The firm says current economic conditions will present challenges, but expects continued growth
The maker of life'sDHA is using the same strategy to expand into the foods and beverage industry that it used to penetrate 99 percent of the U.S. infant formula market. Martek Biosciences President David Abramson tells analysts at the Canaccord Adams Healthy Living Conference Oct. 15 in Boston his firm continues to seek long-term exclusive agreements to supply nutritional oils for conventional foods to market leaders such as Coca-Cola and General Mills. He says Columbia, Md.-based Martek also aims for Splenda-like brand recognition by requiring its partners to highlight life'sDHA on packaging and in ads. Abramson singles out an "exciting" partnership with Dow AgroSciences that would put Martek's oil into a DHA-rich canola oil in development. This month, Martek announced supply deals that will bring its docosahexaenoic and arachidonic fatty acid formulations into Europe and China, whose emerging middle class offers growth opportunity for Martek, Abramson says (1"The Tan Sheet" Oct. 6, 2008, In Brief)
Martek has licensed its proprietary blend of long-chain polyunsaturated fatty acids to infant formula companies Pasteur Milk and Semper AB, the Columbia, Md.-based firm announces Aug. 16. Martek's nutritional oils are the only sources of docosahexaenoic acid (DHA) and arachidonic acid (ARA) cleared by FDA for use in formula, Martek notes. Pasteur's license agreement covers South Korea, while Semper's covers Finland, Sweden, Latvia and Lithuania...