Fish feed manufacturer CFEED, co-owned by Grieg Kapital, has now acquired the international investment fund Kaltroco LTD as its new main shareholder. This positions the research-based company for significant growth.
CFEED was established by the research institute SINTEF in 2014 to help solve a well-known problem in fish farming: malnutrition and high mortality among fish larvae. Researchers found that if the larvae were fed with the tiny copepod, their chances of survival would increase, as well as their health and growth. Consequently, the world’s first commercial copepod production facility was founded in Vanvikan in Trøndelag, Norway. Today, CFEED has customers in many countries and produces starter feed for species such as cod, halibut, wrasse, and shrimp.
CFEED’s starter feed leads to better fish welfare, quality, and growth, in turn reducing the use of energy and other feed.
“Given that conventional feed is a cost driver and has high CO2 emissions, the result of our technology is both increased profitability and lower environmental impact,” says Tore M. Remman, CEO of CFEED.
“Our goal is to produce sustainable food based on technology with low environmental impact and increased employment, both at home and globally.”
Following a share issue, the international family-owned investment company Kaltroco LTD has become the majority shareholder in CFEED, with an ownership stake of 80 per cent.
“We are delighted to collaborate with CFEED to scale production and address some of the aquaculture sector’s core challenges in nutrition and health,” says CFO of Kaltroco LTD, Cornou Rykaart.
Grieg Kapital specializes in investments in aquaculture and technology and invested in CFEED in 2021.
“We have great confidence in solutions that ensure sustainable fish farming on land and hope CFEED can contribute to the development of this. The world needs more food, and it must come from the sea. We look forward to seeing what the future brings and to collaborating with the other shareholders,” says Thomas Grieg, Investment Director at Grieg Kapital.
With the new ownership structure, CFEED is now set up for full-scale production and strong growth in the global market. The goal is to multiply revenue in the coming years, increase the number of employees from 20 to 50-80, and build a new factory in Vanvikan, Norway.
Remman points out that the potential is enormous – especially within farmed species such as cod and cleaner fish in Norway, and sea bass and shrimp in the global market.
“We are very pleased to have brought in such a noteworthy shareholder so that we can realise our planned growth. We also want to thank the shareholders who have been with us for many years and those who wish to continue with us,” says Remman.
As the new owner enters, SINTEF, among others, exits. Sintef Venture IV is an early-stage fund, and Investment Manager Asle Jostein Hovda says they consider their part of the job as done.
“We have helped commercialize CFEED based on our research and expertise. For the company to now carry out their growth strategy, it is appropriate for us to pass on the torch to new, financially strong owners.”