Hormel Foods has formed a joint venture with Source Food Technology to develop and market omega-3 oils and combination products based on SFTI's proprietary oil purification technology.

The new entity will be called Hormel Health Technology.

"We are very excited about our alliance with such an icon company. Hormel Health Technology provides a vehicle to leverage Hormel's food applications expertise and its purchasing, sales, marketing and logistics systems," said Source Food Technology chairman and CEO Hank Cardello. "We envision Hormel Health Technology becoming the pre-eminent supplier of the most stable, highest quality omega-3s for incorporation into foods and beverages."

The deal involves the purchase of SFTI assets by Hormel and the contribution of intellectual property rights to the JV. 

"Our partnership with Source Food further strengthens the portfolio within our Specialty Ingredients business segment," said Paul Jacobson, director, Hormel Foods Specialty Products. "Omega-3s are on-trend with today's health-conscious consumer and we are excited about the growth opportunity within this category. We believe that we will now be able to offer superior omega-3s for food and beverage applications," Jacobson stated.