Unilever signs new $200 million supply agreement with Solazyme

Unilever signs new $200 million supply agreement with Solazyme

Personal care giant Unilever and biotechnology company Solazyme have entered into a $200 million supply chain deal spanning the next five years.

The agreement builds on the current supply relationship between the two companies and will see Solazyme (now known as TerraVia) supply renewable algae oils for personal care products.

The oils will be manufactured at the Solazyme Bunge Renewable Oils facility and delivered routinely to Unilever. The oils purchased are said to amount to around $200 million over the course of the five year deal.

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.”