Denomega targets dairy industry with omega-3 oil

By Shane Starling

- Last updated on GMT

Related tags Docosahexaenoic acid

Norwegian supplier Denomega has debuted a fish oil aimed at the
dairy industry it says will be on market in "major
products" by the summer.

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 "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 Canadahas 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.

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