Leader in the Science and Technology of Hemp-based Health Products
This profile is part of a paid investor education campaign.*
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, plant-based omega and Cannabis extract 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®, Elevate Me™, 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®, Elevate Me™, CHII™ and PawsitiveFX™ begin to contribute more than years prior as these brands gain market share.
Naturally Splendid chief executive officer, Mr. Mason, stated: “Since stepping in as interim chief executive officer at Naturally Splendid, we have made a number of tactical and strategic moves that position the company to take advantage of multiple opportunities in the healthy lifestyle market including, food supplements, superfood ingredients, nutraceuticals and cosmeceuticals as well as pet and animal feed markets. With positive steps such as the recent liquidation of our facility in Saskatchewan, securing additional expertise on regulatory matters and product formulation, and beginning the process of our dealer licence application, we are positioning Naturally Splendid to implement our various strategic initiatives to drive significant growth, most notably in the area of cannabinoid extraction and formulation from cannabis as we anticipate new federal regulations in the Cannabis Act later in 2018.”
Mr. Mason added: “Over my many years of working with consumer goods I have considered myself a pioneer, introducing innovative new product entries and sales methodologies for numerous products including beverages. From consumer-goods and innovative technology to processing opportunities, Naturally Splendid’s continued path to vertical integration is evidence we are on the right track. Along with the qualified Naturally Splendid team, my experience with licensing and distribution and introducing new categories to market will be leveraged as we continue to expand our global footprint.”
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 2016
- Portfolio of award-winning product lines developed with a science and technology-based approach
- Increasing distribution to Asia, Australia and International markets for retail products, bulk and plant-based ingredients
- Established retail presence in food and pet care ( NATERA®, Elevate Me™ CHII™ , PawsitiveFX™ )
- Strategy to rapidly expand through accretive acquisition targets
- Applied for Dealers License through Health Canada to extract, process and distribute Cannabinoids or CBD Cannabidiol
- Liquidated 51% majority holding in the POS-BPC facility – represents a $1.5 million gain.
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.
In mid 2017, Naturally Splendid acquired Prosnack Natural Foods Inc. Prosnack’s innovative Elevate Me™ brand focuses on lifestyle and healthy meal replacement products that include energy bars and on-the-go oatmeals that are currently distributed throughout North America. The Elevate Me brand can be found in over 1,000 retail stores including major retailers such as Costco, Whole Foods, Choices, Save On Foods, Sobeys, London Drugs, Thrifty’s, Rexall and many more. A unique feature of Prosnack is its continuing success strategy of private labelling for major retailers in North America and co-packing for other manufacturers globally. The combination of Elevate Me products and its private-label clients is almost $8-million in sales over the past four years.
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.
Doug Mason – CEO and Director
Mr. Mason is currently Chairman of the Board, President and CEO of a number of TSX Venture Exchange companies. During his 20 years as President and CEO of well-known beverage companies including Jolt Cola and Clearly Canadian Beverage Corporation, Mr. Mason built a reputation for innovation. He has been credited as one of the pioneers of the New Age Beverage category. Additionally, Mr. Mason is a past Chair of the B.C. Sports Hall of Fame and Museum and of the B.C. Sports Hall of Fame Foundation, and remains an active member of the Foundation. He is currently Deputy Chair of the Board of Governors for Collingwood School, and is also an active supporter and recruiter of participants for fund raising events for the Rick Hansen Institute.
Craig Goodwin – President, Director and Founder
Craig Goodwin is a Co-founder of Naturally Splendid and the previous CEO of the Company. As CEO, Craig was instrumental in the transition from private Company to public Company raising over $11,000,000 CDN in the process. In addition to his role as CEO, Craig’s responsibilities included International Business Development where he oversaw the development of a South Korean project generating over $7,000,000 CDN in 2016.
Having identified Mr. Dave Eto to succeed himself as CEO, Craig now focusses on International Business Development and capital markets. Currently, Craig is developing business in South Korea, Japan, China, Germany and Australia to name a few.
Previous to his appointment as CEO of Naturally Splendid, Craig accumulated over 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, Craig was one of the most successful sales executives in Western Canada and received numerous awards for outstanding sales achievements.
In addition to sales and marketing Craig has consulted for numerous public companies providing services from Investor Relations, raising Venture Capital as well as business development.
Bryan Carson – V.P. Operations and Co-Founder
Bryan’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 Bryan has overseen the operations of Naturally Splendid® including establishing supply channels, packaging and product development. Bryan’s insight and vision has proved invaluable as part of the management team.
Mr. 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. Craig Goodwin –President, Director & Founder
Sean Hamzagic – CPA-CGA and CFO
Mr. Hamzagic has over 30 years of public practice accounting and financial management experience with a variety of public and private companies. As a designated CPA-CGA, Mr. Hamzagic has developed a unique suite of expertise in overseeing corporate finance activities, financial planning & analysis, public reporting, as well as mergers and acquisitions, including 10 years with sparkling water producer Clearly Canadian Beverage Corporation, and most recently as the CFO of a number of TSX Venture listed companies.
Peter Hughes – Director
Mr. 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. Mr. Hughes has built industrial and resource companies from the ground up and has obtained regulatory approval and exchange approval for numerous reporting issuers. His experience includes; corporate structuring, public and private financing, marketing, strategic planning, negotiating agreements and public company management. He has also worked with the National Research Council of Canada providing alternative energy companies with market intelligence and strategic planning. Mr. Hughes is a Director of Kelso Technologies Inc. (TSX.V) and a Director of Broome Capital Inc. Mr. Hughes has a Bachelor of Science degree and completed the Canadian Securities Course and Directors and Officers Program.
Russ Crawford – Director
Russ has over 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 Ltd., has been in operation since 1999 providing a comprehensive and unique blend of private sector, independent market advisory services. Russ’s personal consulting expertise includes project management, risk management, feasibility and business case reports and comprehensive experience in electronic trading and clearing technology. Russ Crawford’s personal background includes 20 years with Cargill Limited, 9 years with Alberta Wheat Pool and 12 years of independent consulting to the marketplace.
In October of 2009 Russ was elected to the Board of Directors for the Canadian Hemp Trade Alliance serving on various committees over a four-year term.. The CHTA is Canada’s national hemp association made up of producers, processors, researchers and retail product marketers. It is the primary industry association and has been growing in pace with its members. In 2011 Russ co-authored the CHTA’s Long Term International Strategy (LTIS) report that built on the CHTA’s National Industrial Hemp Strategy by targeting research and education/awareness projects suitable for the national organization benefiting all members. In 2013 he was elected as President where his duties have expanded his leadership role within the industry including a revision of the LTIS to align with the federal government’s Growing Forward 2 program (2013 – 2018). Russ has been an advisor to Naturally Splendid® since 2008.
Alan Maddox – Executive VP, Sales and Marketing
Alan has built a successful career in the food industry spanning over 34 years. In addition to developing sales for Prosnack, Alan held the position of Director of International Sales for McCain Foods where he was responsible for overseeing sales development in over 70 countries around the world. As President of Sepp’s Food Group in the early 1990’s he was instrumental in developing the company into one of the leading natural organic frozen breakfast food manufacturers in North America, growing sales from $1,000,000 CDN to over $88,000,000 CDN annually.
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