Zinzino Pursues Strategic Partnership with Xion for Omega-3 Oil

Zinzino's New Collaboration with Xion International Group

Zinzino AB has embarked on an exciting initiative to acquire a significant 35% stake in Xion International Group. This strategic move aims to form a collaborative venture focused on producing algae via advanced bioreactor systems. Zinzino's growth strategy is oriented towards improving global health through innovative biotechnology and a diversified product range marketed through direct sales.

Innovative Production of Microalgae

Xion International is renowned for developing one of the world's pioneering high-tech photobioreactor systems for cultivating spirulina, a nutrient-rich microalga. This approach adheres naturally to sustainable production standards, providing substantial opportunities for large-scale cultivation of various photosynthetic algae. Zinzino's negotiations with Xion are geared towards enhancing its collection of proprietary processes, ensuring a sustainable supply of omega-3 oil, essential for their flagship product, BalanceOil+. This initiative is vital for addressing the growing demand for Zinzino's products amid its expanding global footprint and escalating sales.

Future Co-Ownership and Strategic Benefits

Currently, Xion's operations are modest in scale, primarily supplying spirulina for Zinzino’s existing product lineup, which expanded following Zinzino's acquisition of Xelliss in recent years. Xion has achieved a turnover of approximately EUR 1.3 million. The future co-ownership will allow Zinzino to leverage Xion's intellectual property rights, facilitating increased brand protection and product development. The goal is to reach a definitive agreement with Xion's sellers for the acquisition before the end of the year, which aligns with Zinzino's vision to enhance its investment portfolio and elevate business performance across emerging markets.

Strengthening Brand through Sustainable Practices

“Sustainable solutions are undeniably the future,” states Dag Bergheim Pettersen, CEO of Zinzino. By securing a reliable raw material source like algae rather than relying on finite resources like fish oil, Zinzino is not only enhancing its sustainability but also protecting its brand longevity. Furthermore, Zinzino plans to establish a specialized company called PhytoFerm, dedicated to advancing omega-3 solutions derived from algae.

Taking a Lead in the Omega-3 Market

Tino Bacchetta, founder of Xion, reinforces the commitment stating, “PhytoFerm will be at the forefront of producing omega-3 oils, utilizing cutting-edge bioreactor technologies.” This initiative emphasizes different advanced systems like photobioreactors and fermentation methods, ensuring they remain leaders in the nutritional supplement space. This collaboration with Xion is seen as a pivotal step towards Zinzino solidifying its position in the rapidly growing market for omega-3 products.

Conclusion

The strategic acquisition of Xion is a calculated step in Zinzino's broader vision, centered on sustainable growth and innovation. Engaging in this co-ownership allows Zinzino to tap into Xion's advanced technology, ensuring a steady supply of high-quality ingredients for its products. This alignment represents both companies’ commitment to fostering healthier lifestyles globally, wherein sustainable practices significantly contribute to environmental preservation and health improvement.

Frequently Asked Questions

What is Zinzino's intention behind acquiring part of Xion?

Zinzino aims to secure a 35% ownership in Xion International to enhance their omega-3 production through advanced algae technology.

How does Xion contribute to Zinzino's product range?

Xion specializes in producing spirulina, which is used in several of Zinzino’s existing health-related products, ensuring a stable supply of key ingredients.

What is the significance of the name PhytoFerm?

PhytoFerm represents Zinzino's new venture focusing on algae-derived omega-3 solutions, emphasizing sustainability and advanced biotechnologies.

In what ways does Zinzino plan to expand its market?

Zinzino plans to explore new markets through strengthening its product portfolio, strategic partnerships, and sustainable sourcing practices.

Who are the key executives mentioned in this initiative?

Dag Bergheim Pettersen, CEO of Zinzino, and Tino Bacchetta, founder of Xion, are pivotal figures in the negotiations and future strategies for both companies.

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