Orkla invests in seaweed

Orkla is developing seaweed ingredients as a new sustainable growth industry. Through its newly formed subsidiary Orkla Ocean, Orkla is purchasing a stake in the raw materials producer Arctic Seaweed AS.

Seaweed are the rainforests of the oceans, tying up large volumes of CO2 and offering potential for overcoming climate-related challenges. As the vegetables of the sea and naturally rich in beneficial nutrients, it could also make a significant contribution to boosting global food production.

“Current food production models present many challenges. We need to make greater use of the sea as a food source and thereby reduce the strain we are putting on onshore resources. Norway has extensive marine areas which could be used for farming, and all seaweed needs to grow are sunlight and seawater,” says Orkla Executive Vice President Ann-Beth Freuchen.

Although farming and harvesting of seaweed is currently a small industry in Norway, as raw materials these plants also have a variety of applications outside the food industry, including in packaging and hygiene products.

“We see this industry as having strong growth capacity in the years ahead, and as a potential contributor to the green shift,” says Freuchen.

Orkla Ocean will serve as a knowledge centre for the development, research and commercialisation of seaweed in the European market.

“Seaweed will provide new opportunities for Orkla’s many skilled product developers. However, this is a long-term project, and it will take several years for seaweed to become common ingredients in our products,” says Orkla Foods Norge Product Development Director Edel Anita Westhagen, the driving force behind Orkla Ocean.

Orkla is purchasing 24.9% of the shares in Arctic Seaweed, which is headquartered in Flekkefjord, Norway and has production facilities at Øygarden outside Bergen, Norway. The company, which was formed in 2016, has developed and patented technology which it is now gradually rolling out to several facilities along Norway’s west coast. Arctic Seaweed’s production model can easily be upscaled to meet increasing demand.

“We want to be involved in developing the entire chain of production, which is why we are also investing in raw materials. This transaction will strengthen our development of seaweed as foodstuffs, and we see this as an investment with strong long-term potential,” says Freuchen, who also emphasises that Orkla is open to further investment in the industry.

Orkla will have two representatives on Arctic Seaweed’s board of directors. The parties have agreed to keep the purchase price of the shares confidential.

Picture: Edel Anita Westhagen, Orkla Foods Norge Product Development Director and the driving force behind Orkla Ocean (left) and Ann-Beth Freuchen, Orkla Executive Vice President.

Orkla is a leading supplier of branded consumer goods and concept solutions to the consumer, out-of-home and bakery markets in the Nordics, Baltics and selected markets in Central Europe and India. Orkla is listed on the Oslo Stock Exchange and its headquarters are in Oslo. The Group had a turnover of NOK 43.6 billion in 2019, and approximately 18,350 employees as at 31 December 2019.

Orkla ASA

Oslo, 28 September 2020

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