NutraCea reports revenue growth for 2006
fiscal year ending December 2006, following the first steps of
expansion into the food industry with its stabilized rice bran.
The company, which is relocating its headquarters from El Dorado Hills, California to Phoenix, Arizona, reported revenues climbed from $5.6m in 2005 to $18.1m for 2006. Income from operations also saw improvement over the same time period, from a loss of $878,000 in 2005 to a surplus of $538,000 in 2006. The manufacturer appears to have pulled itself out of the developmental stages and reports having entered into numerous distribution agreements over the past year, though not all have been disclosed. Previously, NutraCea placed significant emphasis on the humanitarian potential of its stabilized rice bran for the developing world, whereas now it has expanded its targets to include the profitable food sector. The company now says it would like to use its business potential for the mainstream functional food industry to support its humanitarian aims. "The ultimate vision is to fund the humanitarian side of the business with the food industry," NutraCea spokesperson Kurt Kreuter, told NutraIngredients-USA last month. Recently, NutraCea engaged in distribution agreements with multinational conglomerate Azelis Group S.A., Mexican food distributor FX Morales y Associados S.A., as well as received their first purchase order from what it claimed is one of the country's largest supermarket chains. The order was for a baby cereal product. NutraCea attributed the overall increase in revenue to new product sales as well as new license and royalty fees. The company underscores the nutraceutical properties of rice bran surround a complex of vitamin E referred to as "tocotrienols" as well as gamaoryzanol. According to NutraCea, the compounds are only found in rice and are powerful antioxidants. The stabilized rice bran is also marketed for its purportedly high levels of B-complex vitamins, betacarotene, and soluble and insoluble fiber.
