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The Real Power of Brands in the CBD and Cannabis Market

 

Point Roberts, WA and Delta, BC - November 14, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering cannabis and hemp stocks releases a sector snapshot featuring Real Brands, Inc. (OTC:RLBD), reporting on the increased focus towards branding as both the CBD and cannabis industries mature across North America.

Cannabis and CBD products are becoming more socially accepted and consumer awareness regarding these products continues to grow, which is making many companies focus more on brand building with their current product offerings, with one of the key market drivers being quality and consistency.

In recent news, "the US Cannabidiol (CBD) market is expected to rise significantly during the period 2019-2023. The market is expected to be driven by various growth enhancing factors such as aging population, growing use of CBD among millennials, increasing prevalence of arthritis, removal of hemp from Controlled Substance Act, etc."

Nielsen predicts that, "By 2025, the U.S. hemp-derived CBD market could be a $6 billion industry when considering legalized sales of food and beverage products containing CBD from hemp."

Real Brands, Inc. (OTC:RLBD), a leading brand building company in the legal Hemp-Derived CBD consumer products category, is targeting CBD categories including: ingestibles, edibles and topicals. The Company recently announced signing a Letter of Intent with Wonder Labs, LLC to create a joint venture to leverage Real Brands brand building and sales capabilities with Wonder Labs product development and production capabilities. The joint venture will focus on accelerating development of innovative hemp derived CBD and other unique high-value consumer products and launching these products online and through traditional retail channels.

"As we prepare to launch our HempAid®, Humboldt Brands®, Omegahemp™ and CBD Pharmacy™ brands, we have identified areas where we might benefit from additional resources," said Real Brands CEO, Jerry Pearring. "By combining certain of Real Brands resources with Wonder Labs, we expect both parties will benefit from the other parties distinct strengths while creating a joint venture that is broader in scope than either company individually," said Pearring.

"As the hemp derived CBD consumer products marketplace evolves, new product innovation and speed to market are becoming increasingly important," commented Wonder Labs CEO Vicky Arbelaez-Scoates. "We believe this joint venture not only enhances our efforts in these areas, but it also favorably impacts multiple other aspects of our existing operations as well."

Real Brands will have a controlling interest in the joint venture while assuming and performing all management and operational functions of the joint venture. In addition, Wonder Labs will initially contribute a new consumer product brand with innovative formulas while overseeing production of all products developed and launched by the joint venture through its affiliated owned and operated GMP and FDA certified manufacturing facility.

This follows the company closing its previously announced acquisition of the proprietary CBD formulas from Integrative Medicine US of Coral Springs, Florida. The formulas consist of Ancient Chinese and other Ancient Herbal Remedies that are paired with the latest scientific breakthroughs in endocannabinoid systems, nutrients and hemp derived CBD.

The Company's mission statement is defined as "Building shareholder value by:

Acquiring and Developing Consumer Product brands infused with Hemp-Derived CBD,

Developing an E-commerce website, developing a tradition mass market distribution, developing local, regional and national retail relationships and partnering with innovative and strategic companies involved with Hemp-Derived CBD."

Aphria Inc. (TSX: APHA) (NYSE: APHA) has been seeing some successes with their cannabis brands in the Canadian market having recently announced that all five of its medical and recreational brands, as well as its subsidiary, Broken Coast Cannabis' Head Grower were recognized at the 6th Annual Canadian Cannabis Awards presented by Lift & C.

The Company received a total of seven awards. An expert panel of judges awarded Broken Coast's Head Grower, Kevin Anderson 'Master Grower' and Aphria's Solei's CBN Renew oil, 'Innovation of the Year'. Additionally, after more than 31,000 Canadians voted, the Company's adult-use brands Solei, RIFF, Good Supply, Broken Coast, and its medical brand Aphria, took home top honours in product categories.

"We are thrilled to have not only all five of our brands across our medical and recreational portfolios - Solei, RIFF, Good Supply, Broken Coast and Aphria - recognized by thousands of Canadians but to have our Solei Renew CBN oil win 'Innovation of the Year'," said Irwin D. Simon, Interim CEO of Aphria. "These awards speak to the quality of our products and strength of our brands, as well as our commitment to innovation and continuously setting the bar higher to deliver products we believe meet the needs of our patients and consumers."

"We are proud to see the hard work of Kevin Anderson, Head Grower at Broken Coast honored," added Simon. "Broken Coast's superior craft quality is just one reason why it continues to receive accolades and remains one of the most sought-after brands on the market; another key factor is Kevin's expertise, leadership and direction. We congratulate Kevin, and the teams in British Columbia and Ontario for the award-winning work they continue to deliver. Aphria's success will continue to be driven by our incredible employees, and compelling and differentiated portfolio of brands and products."

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) and Aubrey Drake Graham ("Drake") recently announced that they have entered into agreements to launch the More Life Growth CompanyTM, a fully licensed producer of cannabis, based in Drake's hometown of Toronto, Canada.

"When we first began talks with Drake we were extremely inspired by and aligned with his vision to bring best-in-class cannabis products to the world," said Mark Zekulin, CEO of Canopy Growth Corporation. "Drake's perspective as a culture leader and entrepreneur combined with Canopy Growth's breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets."

Drake's eclectic career includes experience across a wide variety of industries including music, television, film, fashion, sports, brand development, content curation and social and digital media strategy. Having launched numerous successful brands over the past decade, he is uniquely positioned to bring his innovative eye to the recreational cannabis industry.

"The opportunity to partner with a world-class company like Canopy Growth on a global scale is really exciting," shared More Life Growth Company founder, Drake. "The idea of being able to build something special in an industry that is ever growing has been inspiring. "More Life and More Blessing."

Proudly based in Drake's hometown of Toronto, Ontario, More LifeTM is centered around wellness, discovery and overall personal growth with the hope of facilitating connections and shared experiences across the globe.

"All in all, we couldn't be more excited to partner with Drake to bring his vision for the More Life Growth Company to global cannabis markets," concluded Mr. Zekulin. "We anticipate a long, successful, and mutually beneficial working relationship."

The Company and Drake will share further details on the More LifeTM team and vision in the weeks to come.

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), a health and wellness company focused on extraction, purification and formulation of cannabinoids, announced that it has entered into a collaboration agreement with International Flavors & Fragrances Inc. to co-develop hemp-derived CBD products for the mass retail and health & wellness markets. App Connect Service, Inc. is also a party to the agreement to provide related branding strategies and promotional activities.

Under this strategic product development partnership, IFF will leverage its intellectual property (IP) for taste, scent and nutrition to provide essential oils and product development resources. Neptune will leverage its proprietary cold ethanol extraction processes and formulation IP to deliver high quality, full- and broad-spectrum extracts for the development, manufacture and commercialization of hemp-derived products, infused with essential oils, for the cosmetics, personal care and home care markets.

The first products are expected to launch under Neptune's Forest Remedies brand at US retailers in the first half of calendar 2020. The Initial launch will include a variety of topical products across the aromatherapy category, a market estimated at approximately $3 billion annually. Additional category launches should follow and the total SKU count could ultimately exceed 50 SKUs. Neptune will be responsible for the marketing and sale of the products. Neptune will record revenues from product sales and in turn will pay a royalty to each of IFF and App Connect associated with the sales of co-developed products.

"The agreement represents a significant event in the development of our global cannabis business, expanding our business model from primarily B2B to include a robust B2C business platform. IFF has an impressive track record, remarkable capabilities and global reach. This partnership will accelerate Neptune's vision and growth strategy to be the leading producer of hemp extracts ingredients and finished products for the global health & wellness and Consumer Packaged Goods industries. We are also now better positioned to leverage our management's experience building brands and relationships with key North American retailers," stated Michael Cammarata, CEO of Neptune.

"We are pleased to enter this strategic partnership and drive innovation that satisfies customers' demands for quality, sustainability and traceability," said Nicolas Mirzayantz, Divisional CEO, Scent at IFF. "The hemp-derived CBD products we are developing will target consumer preference towards natural health & wellness products."

Christophe de Villeplee, IFF's SVP Global Consumer Fragrance added, "With health & wellness a key pillar of IFF's strategy, we believe this new partnership will greatly benefit from IFF-LMR's global expertise and leadership in naturals."

Whether through strategic partnerships and JV's for companies like Real Brands or having a massive in-house infrastructure like some of the leaders, having quick access for new product innovation and speed to market is becoming increasingly important when it comes to brand building and as this market is still far from full maturation, there is currently an abundance of brand opportunity in the future.

With professional athlete Scott Piercy, World-renowned PGA Tour Professional Golf Pro signing on as brand ambassador for Real Brands and music icon Snoop Dog lending his name to new products, the industry is ramping up for a real battle of the brands.

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