Hofseth Biocare – the transformational deal with Garden of Life launched

Hofseth BioCare (Oslo: HBC) is a Norway-based company engaged in processing marine raw materials into products to enhance global health.

Two years ago the company initiated its transformation. The road map to value creation is simple:

  1. In the first stage, move from low-margin animal feed towards high-margin finished products for pet and human-grade nutraceutical products available at retailers and pharmacies globally. This is happening now.
  2. In the second stage, reposition to pharmaceutical products with documented health benefits. This is starting to happen.

The first stage is now in full motion. Last year the company signed a contract with Nestle owned Garden of Life, under which it would supply its salmon protein for its new MD Protein product range. Hofseth started to supply Garden of Life in H1. As a result 21Q2 revenues were 55% up yoy. That was before the product was launched.

I just found out, that the Hofseth based product is now in Garden of Life sales network. The product is launched

See below the link Hofseth based Salmon protein products on Garden of Life network are the first two red products with with Salmon protein


The human products are now launched. The Hofseth sales prices for protein for human products are at least three times higher than that for pet feed products.

Based on my discussions with the management, it is not unrealistic that protein sales should increase 10 times over the next 3-5 years. This quarter 55% sales growth was an indication. More to follow

Similarly promising is the deal with Catalent for using Hofseth’s Salmon oil for consumer health product.

This is due for launch in 1H22. I understand that management believes the cooperation should again multiply Hofseth’s Salmon oil revenues. See the below link for details:


I believe that the Garden of Life is a transformation deal we have been waiting for some time. I am long HBC. I think this is very positive development.

The full investment thesis is below:


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