DENVER, June 5, 2019 /PRNewswire/ -- As the hemp and CBD markets grow, a wide variety of CBD- and hemp-based products are becoming available, including products for pets.
Geyser Brands Inc. (TSX-V: GYSR) (Profile) have recently announced an acquisition that provides the company with two brands of Hemp and CBD products. Indiva Ltd. (OTC:NDVAF) (TSX-V:NDVA), which provides infused products for humans, is working on a new extraction facility to increase its production. Viridium Pacific Group (OTC:VIRFF) (TSX-V:VIR) is supporting the growth of the hemp and cannabis industries through investment, both in acquisitions and in partnership with smaller companies. Wildflower Brands Inc. (CSE: SUN) (OTC: WLDFF) (Profile) has raised the public profile of CBD through celebrity associations and entry into prestige shops. Phivida (OTC:PHVAF) (CSE:VIDA) is producing CBD products for both humans and their furry companions.
- Hemp and CBD products are now worth billions of dollars each year and rising.
- Alongside products for humans, ones for pets are appearing.
- These products are designed to increase the health and well being of those who take them.
Hemp for People and Pets
The hemp industry has come from almost nowhere to becoming one of the big business stories of the past ten years. With cultivation, processing and sales facilities setting up across North America and beyond, hemp and its extracts are increasingly important products. People use them for health, well-being and relaxation. Hemp has even started to feature in foodstuffs and cosmetics.
And as recent industry moves demonstrate, hemp isn't just for people. Pet products have also been appearing, promising benefits such as pain relief, increased energy and broader well-being. Hemp is now for pets, and companies are moving to make the most of the opportunity this provides.
Hemp-based pet products made the news recently thanks to the acquisition of Solace Management Group Inc., owners of the Apawthecary Pets product line, by Geyser Brands Inc. (TSX.V: GYSR).
The acquisition, whose definitive agreement was announced on May 28, represents an important step for Geyser Brands. Providing the company with more than $2 million in gross revenues, it establishes Geyser as a leader in the health-focused hemp and CBD industry. It's an industry that has grown massively over the past few years and is continuing to grow. Recent estimates state that CBD and hemp will exceed $20 billion in value in the next few years.
Solace, the target of the acquisition, is a significant business within this market. Its Apothecary Naturals is a leading brand within the Canadian market, and Apawthecary Pets is one of the few established brands catering to pets. By leveraging its brands, intellectual property and proprietary formulations through licensing and production agreements, Solace has successfully reached out into pet stores and veterinarian clinics across Canada. With a portfolio of 23 products using organic, unrefined, cold-pressed hemp-seed oil extract, the brands can appeal to environmentally conscious consumers as well as those wanting something cleaner to help with their pets' health. And with a recent move into a new 7,500-square-foot GMP production facility, Solace has ensured an ongoing supply of nano-hemp for pets.
Geyser, which is taking Solace's products to global markets, is a leading consumer healthcare company, using hemp products to improve people's lives. Geyser has its own Health-Canada licensed CBD production-and-distribution facility and has recently built a GMP manufacturing base near Vancouver. Like Solace, Geyser has focused on natural ingredients for its products, making the two companies a good fit.
But it's Geyser's NanoFusion technology that makes it stand out. This advanced delivery system quickly and efficiently transports agents directly to the bloodstream, increasing the absorption of therapeutic CBD. The insoluble nature of the molecules means that, for most hemp products, a majority of the beneficial chemicals are never absorbed. Geyer's nano-emulsions are manufactured to improve this absorption, thanks to droplets as small as a tenth of the size of normal molecules.
The acquisition of Solace might look like just one more in a series of recent acquisitions in the CBD sector. But for Geyser, the move is significant. "This is a transformational strategic acquisition for Geyser, which will establish ourselves as a leading provider of health-focused hemp and CBD wellness products," said Geyser CEO Andreas Thatcher. "With the constant evolution of the national and international hemp and CBD landscape, and by combining our expertise in innovation and compliance with Solace's experience and market recognition, we will be well placed to capitalize on what is predicted to be a multibillion-dollar industry." The acquisition also comes with $2,000,000+ in revenues.
The opportunity that Geyser is leaping on isn't just driven by the rise of hemp — it's also about broader demographic trends.
Recent decades have seen growth in the middle class around the world. The growing strength of emerging economies means that more people across Africa and Asia have wealth to spend on goods beyond the essentials. And among the nonessentials many adopt are pets. Pet ownership is growing around the world, and that growth increases the demand for the items needed that come with owning a pet, including grooming, toys and food.
At the same time, concerns about health and chemicals that are consumed are on the rise. Awareness of environmental issues has spurred waves of protest, a swing toward green parties in recent European elections, and booming sales for locally and organically produced foods. As individual consumers, many people are trying to avoid manmade chemicals, both for the sake of the environment and for their own health. That concern now extends to feeding and caring for pets, with owners looking for more natural ways to support their furry companions. And that's where the CBD products of companies such as Geyser come in.
Apawthecary Pets provides a range of CBD treats and oral drops designed to improve the health and well being of dogs. These products have helped owners treat pain, anxiety, and seizures, making life better for their pets. And now the company is adding a new brand, WildTails, with a range of treats for both dogs and cats. Freeze-dried meat treats infused with hemp or CBD, these products minimize processing and the addition of extra ingredients to make a snack that is both natural and good for pets.
Given the growing wealth of the Asian middle class, it's not surprising that companies are looking to that continent as a major market for this type of product. Geyser's release of WildTails is starting with the negotiation of orders and distribution contracts in Asia, to reach a market beyond CBD's core territory of North America.
Part of a Bigger Picture
Just as CBD isn't just for humans, the infusing of food isn't just for pets. Companies such as Indiva Ltd. (OTCQX:NDVAF) (TSX.V:NDVA) have developed ranges of edible products targeted at humans and infused with CBD. These are part of a wider range of products in which cannabinoids, the active ingredients in cannabis, are introduced to food as an alternative way of consuming them. CBD is one of the two leading cannabinoids, alongside psychoactive THC, and Indiva offers products infused with one or both of these ingredients. The company is currently developing an extraction facility that will improve its ability to extract these natural chemicals from plants and put them into food.
The work of hemp and cannabis producers is supported by companies such as Viridium Pacific Group (OTCQB:VIRFF) (TSX.V:VIR). Viridium is a Canadian public capital company that has invested heavily in the cannabis industry, developing several wholly owned subsidiaries. In addition to production and distribution of cannabis, the company is involved in related property development and resource management. Like Geyser, Viridium is making use of mergers and acquisitions as well as collaborating with other companies in the sector. One of its subsidiaries recently supplied plant clones to one of Canada's first micro-cultivators, helping the smaller business to establish its own crops.
A Vancouver-based health and wellness company, Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) is focused heavily on CBD. It produces capsules, tinctures, vaporizing liquids and other CBD-infused products. Aiming at an upmarket clientele, several of its products have achieved a prestigious status through their recent appearances at Kim Kardashian's baby shower, in hotel swag bags for the Oscars and in the Saks Fifth Avenue store. The company is also reaching a wider audience, with the acquisition of City Cannabis providing more outlets in Canada.
Phivida (OTCQX:PHVAF) (CSE:VIDA) is firmly focused on functional food and beverages, a broad description for those containing active ingredients such as THC and CBD, with a particular focus on the health and well-being sector. The OKI product line is set to make beverages a central part of the business, as CBD drinks offer consumers an alternative recreational beverage to alcohol and caffeine. The company has also announced a line of CBD-infused products for pets, initially consisting of tinctures and an oral spray.
With the CBD market growing alongside that for pet products, it's natural that the two should combine as the focus to serve expands to humans and their well-loved pets.
For more information about Geyser Brands, please visit Geyser Brands Inc. (TSX.V: GYSR).
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