Thanks to its patented Powder-loc micro-encapsulation technology, the Nova Scotia-based company has been adding its Meg-3 omega-3 powders to a wider range of mainstream food products through numerous agreements with processors.
This flurry of alignments between ONC and players in the food industry is driving the company to up its capacity in a market which is said to still have potential despite the number of companies already participating.
In its 2006 report "World Nutraceuticals", Cleveland-based analyst the Freedonia Group highlighted omega-3 fatty acids as one of the nutraceutical ingredients sector that still has growth opportunities.
As part of the agreement, effective April 2007, ONC will have a second omega-3 fish oil manufacturing facility - this one based in Peru.
The company said the venture with Alicorp will immediately increase its capacity for the manufacture of its high concentrate omega-3 oil capacity by over 50 percent, and its standard 18:12 fish oil by over 200 percent.
The companies will be investing $10mn on new oil refining equipment which will further expand its production capacity. ONC said this is intended to keep it well ahead of exponential growth in consumer demand for omega-3 products.
"Our many food and supplement customers around the world can now enjoy the benefits of unprecedented multi-site capacity and quality manufacturing, for both our oil and micro-encapsulated ingredients," said Robert Orr, ONC president and CEO.
Recently, ONC has announced agreements for use of its omega-3 ingredients in food and beverage products manufactured by companies such as Danone, Minute Maid and Tropicana.
ONC said it has been carrying out technology transfers to Alicorp for the past two years in preparation for this increase in its production capacity.
