W Hydrocolloids

GOOD FOOD, BETTER MAKING IS SEAWEED

W Hydrocolloids, Inc. is a cornerstone in aquacultural innovation. The Filipino company has been marketing its products throughout the world under the trade name RICO® CARRAGEENAN for more than 50 years. Hannah Barnett spoke to Vice Chairman of the W Group Rosalind Wee, Sales & Marketing Manager Arra Sangalang-Quimosing, Technical Advisor May Sandoval, and Marketing Supervisor Carla Guevarra.

Everyone enjoys a ham sandwich or the occasional bowl of jelly. But most people do not realise that these individual and distinctive textures may be the result of a special ingredient: seaweed. Or carrageenan, to be precise.

Carrageenan is a natural sulphated polysaccharide that is extracted from red edible seaweeds, widely used in the food industry for its stabilising, thickening and gelling properties. The Philippines is the largest producer of carrageenan in the world as red seaweed grows abundantly there, and the Manila-based W Hydrocolloids is exploiting the potential of this resource.

Company overview

Having pioneered the study of carrageenan in the Philippines in the 1960s, and though it now operates as part of the larger W Group

Inc, W Hydrocolloids is essentially a family business. It was founded by husband-andwife Leehiong Wee and Rosalind Wee, with their sons John and Winston now serving as President and CEO respectively.

The company has stated mutiple goals: to become the market leader in the carrageenan-based food ingredient industry; be recognised for its world-class products, and to achieve sustainable growth through continued innovation, excellent services and competitive pricing.

“We are in the seaweed business,” W Group Inc Vice Chairman Rosalind Wee explained. “We process the seaweed into carrageenan, and work to utilise it for as many applications as possible. We do a lot of research on its properties. We use it in

foods such as ham, sausages, ice cream, chocolate milk, and recently in medicine capsules. Before the pandemic, we were doing research on how to use it to improve the environment by substituting plastic with carrageenan. This is what we're trying to research next.”

Global operation

W Hydrocolloids exports some 20,000 tons of carrageenan to the United States, United Kingdom, Germany, Korea, Chile, Argentina, Brazil and many other countries in a 3year period. Bestsellers vary, depending on cultural palates. “In America, it is most commonly used in chocolate milk,” said Marketing Supervisor Carla Guevarra. “In Europe, it’s meat. Demand for a product depends on the territory.”

“In chocolate milk, the cocoa is heavier than the water,” added Ms Wee. “So, it needs carrageenan to stabilise it. Without carrageenan, you have to shake it before you drink. Before the pandemic, our R&D department was also doing a lot of research in Russia for carrageenan to be used in the production of gummy bears.”

The RICO 86 series acts as a gelling agent when incorporated into gummy bears and other sweets. It helps achieve the desirable gelatinous texture that ranges from soft and firm to chewy, providing an excellent flavour-release and better storage stability.

It is clear that W Hydrocolloids is a large operation, as Ms Guevarra described: “We have four plants around the Philippines with more than 300 employees, which includes the headquarters and our factories. We have the capacity to manufacture around 10,000 metric tonnes per year and we have a large team that is dedicated to both local and international sales. In addition to that we also provide technical assistance, which gives us the cuttingedge against our competitors.”

The company hopes to report a net growth of 10% from 2021, and to keep growing from there. “We have the experience,” Ms Wee stated; “we have been in the industry for more than 50 years. We also have the capacity to produce large volumes of carrageenan.”

Recently company executives have taken some of this vast knowledge and

experience overseas with a visit to nearby Indonesia, where carrageenan also grows in abundance. While there, they met with the Indonesian Minister of Fisheries to demonstrate how to use seaweed for commercial purposes. “They have a lot of products, but there is always room for improvement, especially in the technical knowledge,” Ms Wee said.

Looking back, going forward

Unlike many businesses, the Covid pandemic has not impacted the company too heavily. “We were lucky, because the seaweed farmers live at the coast,” Ms Wee explained, “so it was the safest environment at the time. The business went on. They still cultivated seaweed. Other industries had to stop but the seaweed industry continued.

“People had to eat during the pandemic. And we did very well – especially in the food business. People stayed at home; they didn’t go out to restaurants anymore. Things like hot dogs, ice cream and chocolate milk were all in high demand.”

As industries and individuals alike hope to close the Covid chapter once and for all, what does the future look like for this pioneering and exciting company? Sustainability is a part of it.

“We are working on using geothermal energy,” Ms Guevarra said. “We have secured a contract to work on that. And we also have plans for solar panel acquisition, maybe in the next year or two.”

And for a company so innovative, the R&D looks set to continue at an impressive pace too. As Technical Advisor May Sandoval put it, the research potential is why she loves the job: “I have been developing products for the company for 42 years so, obviously, I enjoy doing it. There’s always something new to discover.”

“Carrageenan is nature’s gift to us from the sea,” she continued. “It is natural. We

want to expand and let the world know that we are lucky to have the tropical climate that allows this seaweed to grow here in the Philippines. We want people to know how versatile this product is.”

Ms Guevarra agreed that the versatility of carrageenan is what makes it so special; something that will see seaweed establish itself beyond the food and drink business. “It's not limited to a single industry,” she said. “Aside from being used in food products, you can also use it for cosmetics. Sometimes we even have enquiries about how to use it for textiles. Our goal is also to provide more information about how to use the ingredient in everyday products.”

Carrageenan is certainly a distinctive, useful ingredient, and the company wants to continue to infuse it into the products we use and love every day. Ms Wee was enthusiastic about what they do, which is essentially making good food better: “Every day businesses come to us and ask us how to improve their products. We are like a doctor of food: we are here to help.” n