Denomega targets dairy industry with omega-3 oil

The ingredient, called Omega-360, is being offered to manufacturers as a co-branded proposition with full consumer support.

It is the first time Denomega has gone down the B2C route that has helped companies such as Ocean Nutrition Canada to global omega-3 oil market leadership with its Meg-3 ingredient.

Martek, the other member of the omega-3 oil supply 'big three' also has an algae-derived B2C ingredient called 'life'sDHA'.

"We have signed deals with more than one multinational customer so we are very excited about the ingredient," Denomega vice president of sales and marketing, Jan Haakon Haakonsen told NutraIngredients.com.

"We felt it was time to bring our ingredient into the consumer sphere as we have spent a lot of time developing the concepts around marketing it to consumers."

A better omega-3?

A marketing campaign employing an underwater cow wearing dive gear to denote the dairy-fish oil links, with the strap line, 'Are you looking for a better omega-3?' had been debuted at Expo West in Anaheim and drawn a positive response, he said.

While refusing to reveal per-unit cost, Haakonsen said it was comparable to leading competitors.

Omega-360 was priced marginally higher than Denomega's existing flagship omega-3 ingredient, Denomega 100 Oil, despite the consumer branding being offered.

"It's up to our customers whether they want to go down the co-branding road but there is cost variation to them," Haakonsen said.

He said Denomega would initially be targeting Omega-360 at the dairy sector but other beverages as well as the bakery sector were on the horizon.

Co-branding with supplements makers was also being considered.

B2C methodology B2C ingredient marketing has proven a difficult path for many companies who struggle to gain the consumer recognition they seek.

Ocean Nutrition Canada's Meg-3 has been more successful than most, having been launched in dozens of food and beverage products in global markets and achieving a certain level of consumer recognition via its many co-branded products.

"Ocean Nutrition Canada has done a good job but we think there is room in the market for Omega-360," Haakonsen noted.

"We are trying to take it a little away from fish and make the message more about omega-3 because people can be confused about omega-3 sources."

Market researcher Packaged Facts predicts the US market for ALA, DHA, and EPA-infused foods will hit $7 billion by 2011, up from $2bn in 2006 and a mere $100m in 2002.

"The dairy segment will soon gain a sizable chunk of the market share as the popularity of enhanced yoghurts, milks, ice creams and cheeses begins to take off," it predicted.