Australian natural food ingredients maker Clover Corp has teamed up with the Food Spectrum Group to enhance the marketing and development of its dietary supplements, reports IndustrySearch.
The partnership involves creating a new company, Nu-Mega Ingredients, of which Clover will own 70 per cent, and Food Spectrum 30 per cent.
The marketing, research and product development agreement is subject to final due diligence, legal documentation and Clover shareholders' approval.
Clover refines and supplies nutritional natural oils (lipids) to the healthcare and nutrition markets. Its dietary supplement oils recently gained approval from the US Food and Drug Administration. The company manufactures a range of omega 3 (which occurs in tuna oil) and omega 6 (occurs in primrose oil) products including a high strength DHA oil (Hi-DHA) and evening primrose oil.
Clover will lease its Melbourne plant and equipment and intellectual property to Nu-Mega Ingredients, while Food Spectrum, which develops food systems to improve texture, taste and life span, will manage the marketing, research and food applications technology, according to the report.
Clover executive chairman Hamish Drummond said the board had been searching for some time for a solution to advance Clover's lead in Omega 3 DHA innovations and expertise in the lipid technology.
"The agreement with Food Spectrum fits Clover's requirements to achieve the obvious growth opportunities that exist for Clover's Omega 3 DHA products in global markets," Drummond said.
Clover's technology was developed in conjunction with the CSIRO and deemed a stable food additive to a wide range of foods.