The company has expanded its production facilities to meet expected demand and says the new krill oil will be aimed at market segments that may have been priced out of the high-grade krill market. "Following the market trend, we also see the potential behind better omega-3 as significant," the company said. "Indeed, it seems that the demand for a high-quality krill oil is surging and we have expanded our capacity further to meet market expectations." The fact Enzymotec is a multi-faceted lipid specialist assisted the development process as techniques from across the company's portfolio were applied to the ingredient. "Our engineers were able to come up with a modified process, which would enable us to offer in parallel to our existing krill product, a new grade of krill oil," it said. "The new product has modified phospholipids and omega-3 content but with a significantly lower price making this more suitable for other market segments." Having a two-tier pricing system for its krill offerings, in addition to its other lipid ingredients, allowed the company to better compete the likes of global krill market leader, Canadian-based Neptune Technologies & Bioressources. "This ingredient will be offered in addition to our commercial high-grade Krill oil," said Enzymotec. "The fact krill oil is both a final product and an interim phase for more advanced nutrients that we manufacture, enables us to maintain consistently high quality standards while having great flexibility and efficiency." Enzymotec's range includes phosphatidylserine-based ingredients it markets for cognitive development, lipids for infant formulas, as well as pure krill oils, which it began supplying in early 2007. The company recently established a US subsidiary in New Jersey to support its expansion in the Americas, but continues to manufactures its ingredients at its Israeli facility. Its best-selling ingredient in the US is its cognitive offering PS, which has had a US presence for 20 years, mainly in supplements, but which received GRAS (generally regarded as safe) status in January this year. Enzymotec said it will target the functional foods market now that GRAS has been achieved for PS. It will also be ramping up the marketing of its krill ingredients as it saw "huge potential for krill oil to be the next generation of omega-3". It attained GRAS approval for these ingredients in February. Krill oil, rich in omega-3, phospholipids and antioxidants, is derived from the planktonic family of crustacean. The company could not be contacted for this story before publication.