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Naturally Splendid (TSXV:NSP) is the only publicly-traded company in the world offering investors an opportunity to gain exposure to the hemp-based healthy foods and omega markets. Through the application of advanced science and technology Naturally Splendid and its partners are building a portfolio of high quality hemp and plant-based products.
Naturally Splendid’s retail product lines include NATERA®, PawsitiveFX, CHII™, HempOmega® and NATERA® Ingredients. Naturally Splendid was a finalist for the prestigious NutraIngredients Awards, in the category of Start-up Ingredient of the Year, for their innovative omega ingredient HempOmega®, which has now been commercialized into beverage and pet applications.
Naturally Splendid recorded $7,346,746 in revenue during 2016. This represents a dramatic increase in revenue compared to 2015, when sales totaled $301,523, a nearly 25 times multiple. The significant increase in top line revenue was mainly due to bulk sales of hemp products to Korea and to the Company’s subsidiary POS-BPC commencing operations in the second quarter of 2016. We have also seen our retail brands, NATERA®, CHII™ and PawsitiveFX™ begin to contribute more than years prior as these brands gain market share.
Naturally Splendid CEO Dave Eto states, “2016 was an incredible growing experience. An organization doesn’t expand as quickly as we did without both learnings and opportunities. On the learning side we realized how competitive the South Korean marketplace can be and focusing on the commodities can not be the sole purpose of our business model. On the opportunity side, we’ve establish a very solid business reputation with South Korean distributors who are interested in other products we deliver; secured excellent relationships with Canadian and foreign government trade agencies that seek to work with us because of our Asian knowledge; and allowed NSE to be opportunistic and nimble when evaluating other opportunities like HempOmega™ and CBD — our key focusses in 2017.”
Naturally Splendid is led by a strong management team and advisory board, that is dedicated to developing and commercializing sustainable, nutritious health products. “Naturally Splendid wants to provide real nutrition, not just a marketing strategy,” said J. Craig Goodwin, President, Director and Founder. “Our world-class management team, world-class science and world-class processing capability combined with global health trends have created global opportunities for our products.”
- Naturally Splendid recorded $7,346,746 in revenue during 2016 – nearly 25 times multiple compared to 2015.
- Ranked fourth in the Diversified Industries sector on the TSX Venture Exchange
- Portfolio of award-winning product lines developed with a science and technology-based approach
- Increasing distribution to Asia and International markets for retail products, bulk and plant-based ingredients
- Established retail presence in food and pet care ( NATERA®, CHII™ , PawsitiveFX™ )
- Plans to rapidly expand through accretive acquisition targets
HempOmega®—High-quality plant-based omega solution
Naturally Splendid’s HempOmega® is a perfect example of the company’s dedication to scientific and technological innovation. In fact, the product is a finalist for the prestigious NutraIngredients Awards in the category of Start-up Ingredient of the Year. HempOmega®, developed in conjunction with its partner Boreal Technologies Group, is a high-quality, omega-rich homogenous powder created from microencapsulated pure Canadian hemp seed oil.
“HempOmega® optimizes hemp oil by taking what is already a perfect ratio of omega-3 and omega-6 and making theses more bio-available in the body,” explained Goodwin. “Microencapsulating that oil into a powder allows it to be dispersible in beverages or as an ingredient in foods. This is important because consumers are looking for omega nutrition and our HempOmega® clearly delivers in that category.”
Omega-3 and omega-6 fatty acids are important nutrients for all systems of the body to function normally, including skin, respiratory system, circulatory system, brain and organs. They are also known to reduce inflammation, which is the source of many illnesses. However, the human body cannot produce these two fatty acids on its own, making omega-dense foods a critical component of a healthy diet.
HempOmega® is produced by POS Biosciences in Saskatoon, Saskatchewan in a cGMP, HACCP and ISO9001 certified facility. The manufacturer is a global leader in the creation of value-added products from biological materials and also provides expert R&D, custom processing and analytical services. POS Bio-Sciences recently won the North Saskatoon Business Association’s 19th annual Business Builder Awards in the Export Category.
Markets for HempOmega®
“Not only can HempOmega® be used in food and beverages, but it can also be used as topically in the form of nutraceuticals as well as commercial poultry and beef feed ingredients and pet food ingredients,” added Goodwin. “So by providing an omega ingredient that can be widely used or adapted to a number of products, we are actually creating new omega markets.”
Health food and beverages
HempOmega® is an ingredient for Laguna Blends Pro369 hemp protein powder drink mixes. Custom formulated by Naturally Splendid, Pro369 is a unique 30g single serving hemp protein powder drink mix available in a variety of flavours. Naturally Splendid, along with Cocos Pure Beverage Corp, is also developing a unique product line of coconut-based retail products infused with HempOmega®.
Pet food product development
Naturally Splendid has secured a working relationship with The Alberta Food Processing Development Center to determine the efficacy and nutritional benefits of using HempOmega® as an ingredient in existing pet food formulations. Conventional formulas use fish oil with some success as far as health benefits, but early findings from Naturally Splendid’s studies have shown its product can deliver maximum high-quality omega nutrition to canines.
A recent study conducted at the University of Manitoba showed an increase of over 527 percent in the natural omega content of eggs produced by chickens that consumed Naturally Splendid’s exclusive HempOmega® plant-based omega product when compared to chickens that consumed a commercial feed product. The study also concluded that chickens that consumed HempOmega® not only had substantially higher omega content in their eggs but also demonstrated an increase of over 272 percent in the omega content of the chicken thigh meat itself as well as lower levels of saturated fats.
NATERA®—Re-thinking hemp for global markets
Naturally Splendid’s NATERA® hemp foods retail line features a wide range of hemp-based food products including flavored hemp seed and protein powders. NATERA® is now available in retail outlets in Canada and the United States.
As part of the company’s global growth strategy, Naturally Splendid has partnered with the Korea Beauty & Healthcare Co. to develop the Paleo/NATERA® shelled hemp seed line specifically for Asian markets. In March 2016 the product launched on the Lotte Home Shopping Channel, selling over 40,000 pounds of shelled hemp seeds in the first hour. With over 21 million viewers, it’s the second most successful shopping channel network in South Korea.
“The Paleo / NATERA® shelled hemp seed line, which is a partnership between our Korean supplier and ourselves, is off to an incredible start and we expect that growth to continue,” said Goodwin. “We’re very fortunate to have a strong partner in South Korea with Korea Beauty & Healthcare. They focus heavily on online sales as well as becoming a specialist in the home shopping channel space. The home shopping channel opportunity in South Korea is really a phenomenon and sales are actually greater than the traditional brick and mortar retail opportunities.”
Naturally Splendid is now working to expand sales of HempOmega®-based products into Asian markets through the company’s relationship with Korean Health & Beauty.
CHII—Online bulk priced hemp food products
In late 2015, Naturally Splendid acquired Chi Hemp Industries Inc. (CHII), an online hemp bulk distributor, which has sold over one million pounds of hemp products since 1998. Now, CHII sales are continuing to increase and are providing positive cash flow for Naturally Splendid.
Prior to the acquisition, CHII fully re-branded and re-launched its online platform, which resulted in increased revenue online of almost 100 percent within several months. Naturally Splendid has leveraged this marketing expertise to optimize the company’s online presence.
Pawsitive FXTM— Award-wining pet care product line
Naturally Splendid has successfully tapped into the multi-billion dollar North American pet industry with an award-winning hemp-based pet care line. First launched in February of 2015, the Pawsitive FXTM product line is made using natural, ethically sourced ingredients.
Pawsitive FXTM quickly received an excellent reception in the marketplace and was soon awarded “Best New Product” at the Calgary Pet Industry Trade Show in April 2015. In June 2015, Naturally Splendid secured a distribution agreement with a top distributor of well-recognized pet products, Anipet.
Dave Eto – CEO & Director
Mr. Eto has spent over 30 years in the food processing industry and recently served as Executive Director and Chief Executive Officer of the BC Dairy Association. Dave was responsible for the overall management of the BC Dairy Association, including communicating with hundreds of farmers, working with various governmental departments as well as developing many of the marketing initiatives launched during his term. Previously, Dave held a senior corporate position with Premium Brands Holdings, which is a company listed on the TSX and is a Canada-based producer, marketer and distributor of specialty food products. Dave has also held the position of President and Chair of the BC Food Processors’ Association for the past five years and has many contacts within the government, academia and the food processing industry.
Bryan Carson – Vice President Operations & Co-Founder
Bryan Carson’s vision of a company distributing healthy food choices is a driving force behind Naturally Splendid® and the foundations of which this company originated. For the past four years he has overseen the operations of Naturally Splendid including establishing supply channels, packaging and product development. Carson created, operated and sold a successful retail store in Vancouver, B.C. His hands-on retail expertise from the conceptual planning stages through construction and launch are of great value in developing our relationship with major food distribution channels.
Brian Richardson, CGA – CFO
Brian is a Chartered Professional Accountant, CA, who has over 15 years experience as a public company CFO and has worked as a financial professional in a number of industries including pharmaceuticals, high tech, energy and mining. His international experience includes working in both the private and public markets with a focus on emerging high growth companies. Areas of experience include financial reporting and control, financings, operations, strategic leadership and in mergers and acquisitions. Brian has a B.Comm degree from Queen’s University in Kingston and an MBA from IMD in Lausanne, Switzerland.
Craig Goodwin –President, Director & Founder
Craig Goodwin has more than 30 years of sales and marketing experience including Senior Account Executive for one of the largest outdoor advertising companies in the world, The Jim Pattison Sign Group. While with The Jim Pattison Sign Group, Goodwin was one of the most successful sales executives in Western Canada and received numerous awards for outstanding achievements.
Peter R. Hughes B.Sc. – Director
Peter Hughes has 25 years of business experience including senior-level executive and director positions in both private and public companies specializing in pharmaceuticals, alternative energy and mining. Hughes has built industrial and resource companies from the ground up and has obtained regulatory approval and exchange approval for numerous reporting issuers. He has also worked with the National Research Council of Canada providing alternative energy companies with market intelligence and strategic planning. Hughes is a director of Kelso Technologies and a director of Broome Capital.
Russ Crawford – Director
Russ Crawford has more 40 years of experience in commodity marketing and risk management strategies as well as providing operations and technology solutions serving the Western Canadian agricultural marketplace. His company, Agrinomics I.T. Consulting, has been in operation since 1999 providing a comprehensive and unique blend of private sector, independent market advisory services. His background includes 20 years with Cargill Limited, 9 years with Alberta Wheat Pool and 12 years of independent consulting to the marketplace.