CannabisNewsBreaks – One Cannabis Door Closes, New Ones Open for Former Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) CEO

Former Canopy Growth (TSX: WEED) (NYSE: CGC) co-founder and co-CEO Bruce Linton was featured in a recent Yahoo! Finance article by Zack Guzman. The piece details “a smattering of new roles” Linton has landed within the cannabis industry since being “ousted” by Canopy’s board, which Guzman describes as having become increasingly controlled by investor and beer conglomerate Constellation Brands Inc. (NYSE: STZ). The cannabis pioneer will reportedly be joining, in an advisor capacity, many smaller companies, as well as “trying his hand as an activist investor” for SLANG Worldwide Inc. (OTC: SLGWF) – a global cannabis consumer packaged goods company. Among his multitude of new roles, Linton will serve as executive chairman for Michigan-based Gage Cannabis and as special advisor for animal health and wellness CBD micro-cap Better Choice Company Inc. (OTCQB: BTTR). The article quotes Linton on his new endeavors, where he states, “The way I selected the companies was not how much equity they would give me. I turned down the most self-enriching offers. However to be transparent, all firms provided me with generous equity exposure. With each firm and space, I sought to develop a specific view of how we build enterprise value from the current activities and limit disruption.”

To view the full article, visit http://cnw.fm/9iihd

About Canopy Growth Corporation

Canopy Growth is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time.

Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting-edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.

Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships.

From its historic public listing on the Toronto Stock Exchange and New York Stock Exchange to its international expansion, pride in advancing shareholder value through leadership is engrained in all accomplishments at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, as well as lifestyle guru Martha Stewart and Fortune 500 alcohol leader Constellation Brands, to name but a few. For more information visit www.CanopyGrowth.com.

About CanadianCannabisWire

CanadianCannabisWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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CBD Beverages – Possible Next Big Disruptor in the Drinks Industry

CannabisNewsWire Editorial Coverage: Drinks infused with cannabis-derived cannabidiol (CBD) are in a prime position to bring disruption to the beverage sector.

  • The growing consumer interest in hemp-derived CBD as a health supplement along with the recent passing of the Farm Bill has spawned a growing interest in CBD-infused drinks.
  • The ever-increasing global trend to legalizing cannabis is also creating demand for “harder” beverages derived from marijuana
  • Big alcohol companies have taken a particular interest in investing in cannabis producers.
  • The relationship is also working in an inverse direction, with CBD producers recruiting experienced beverage executives to help launch new products.

Corporate interest in building a cannabis-infused beverage profile demonstrates the level of potential growth for such an industry, with key developments being made across multiple channels. To address the needs of the wellness-oriented consumer, Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF) (PHVAF Profile) has created a line of active hemp extract (CBD)-infused drinks that are just starting to hit store shelves and is expected to be distributed to a thousand retail outlets in Q2. In the adult beverage sector, Constellation Brands Inc. (NYSE: STZ) has made a $4 billion investment in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), fueling research into cannabis drinks which suggests a proactive approach to addressing the potential sales impact in markets where consumer use of marijuana is legal. The Canadian business unit of Molson Coors Brewing Company (NYSE: TAP) has also made a deal with a cannabis producer to create beverages for that market. In the health supplements sector, Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB), which markets hemp-derived CBD oil, has recruited a former Coca-Cola executive to bring beverage sector expertise into the company.

To view an infographic of this editorial, click here.

The Changing Beverage Space

Beverages are among the most trend-driven of all food industry products with continuing innovations in packaging, flavors and formulations being made to drive consumer interest. Decades ago, store shelves consisted of a few cola and fruit-flavored drinks. Since then, there have been introductions of enhanced fruit juices, bottled iced teas and more recently energy drinks, which created an entirely new drink category. Consumer tastes have grown considerably as well, especially when considering the popularity of the fermented tea drink kombucha.

Now a fresh wave of innovation is on the cusp of altering the beverage industry. The growing interest in hemp-derived CBD as a health supplement along with the legalization of marijuana for medical and recreational use in several jurisdictions has led manufacturers to explore new products and expand their consumer base. This has led to the creation of a new product category — CBD-infused beverages.

The Rise of CBD Beverages

Few companies currently have a strong focus on CBD drinks. However, among those looking to take advantage of this market is Phivida Holdings Inc. (CSE: VIDA) (OTC: PHVAF). Through its Oki brand of active-hemp, extract-infused waters and iced teas, Phivida is targeting health-conscious consumers who are looking for newer ways to enhance their well-being. Backed by its own market research, Phivida expects that introducing an attractive beverage formulated with the flavors and features most desired by this segment will have strong market acceptance.

Driving the growth of this new segment is the rocketing popularity of CBD as a health supplement. One of the many active ingredients in cannabis, CBD doesn’t produce a high in users, unlike cannabis’ more famous constituent, THC. While research into CBD is in its early stages, consumers are increasingly looking for products containing CBD to address a variety of health issues such as anxiety, pain, and immune health. This has been aided by the passing of the Farm Bill in December 2018 which legalized hemp — defined as a variety of the cannabis plant that contains less than 0.3 percent THC — and allows its production and sale in all 50 states. For companies such as Phivida, which process the hemp plant into their products, this has provided them with a significantly large market to grow into.

Launching into the CBD-infused Drink Market

Chances are that, within a decade, every store may have a CBD-infused drinks section. But currently, companies are entering new territory and strategizing the best steps that will lead to success.

A critical step some are taking is to reach into the established beverage industry to tap into seasoned expertise and leverage previous success. For example, hemp-derived CBD supplement producer Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB) recently recruited former Coca-Cola executive Eugenio Mendez as its chief growth officer. The company has stated its strategy is to expand into new segments, and Mendez could provide vital experience for a move into beverages.

For Phivida, that process also started with finding the right people to manage the project. Last March, Jim Bailey and Mike Cornwell stepped in as new management at the company. Veteran executives from Red Bull, they brought with them large beverage company expertise in product formulation, package design, product distribution and marketing. Coming from the last company to truly innovate and trigger a widespread disruption in the beverage industry, the two executives look well-equipped to repeat that achievement at Phivida.

Another key step is designing a beverage that will have the most consumer appeal. To align with the sentiments of their target consumers, Phivida’s Oki brand flavored waters and iced teas contain non-GMO, natural and organic ingredients; are plant based and vegan friendly; and are packaged in sleek 100 percent recyclable glass containers. The flavor line-up, which includes Watermelon Relax and Lemon Ginger Harmony, are aligned with the current preferences of the health-conscious consumer. Phivida’s surveys have resulted in product testing scores as high as 80 percent from its sample group of 1,200 individuals for its OKI beverage.

The new leadership team has also put in significant effort to ensure that Oki has the distribution channels necessary to reach consumers. Company officials have been working with one of the nation’s largest grocery distributors and meeting with both national and regional chains to secure retail contracts. Several retail contracts are in development, and Phivida expects Oki to be available in more than 1,000 outlets by the second quarter of this year.

Beer Makes Its Cannabis Move

So far, one of the most significant moves by the beverage industry into cannabis has been made by Constellation Brands Inc. (NYSE: STZ). The company behind brands such as Corona beer and Svedka vodka has taken an active interest in the cannabis sector. Through two rounds of investment over the past two years, Constellation has provided $4 billion to Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), one of Canada’s largest and most successful cannabis companies. This investment provides Constellation with one-third ownership of Canopy Growth and the potential to take that investment further.

Unsurprisingly, there has been a lot of speculation about how this money will be spent. Canopy Growth has been using its increased financial clout to expand its business from Canada into the United States. Canopy is establishing a production facility in New York State that, for now at least, will produce industrial hemp from which CBD can be extracted.

In another team-up between a brewer and a Canadian cannabis company, Molson Coors Brewing Company (NYSE: TAP) announced last summer that its Canadian arm would be working with the Hydropothecary Corporation on a joint partnership to produce cannabis-infused drinks in anticipation of the expansion of that country’s cannabis legalization. Cannabis beverages and edibles are expected to be made available by October 2019, and Molson will be positioned to serve that new sector once it is made legal.

The market for both CBD- and THC-based cannabis drinks has barely begun to take shape, but given the dramatic growth in the popularity of cannabis, it could become a major disruptor for the beverage industry over the next few years.

For more information on Phivida Holdings, visit Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Drink Companies Prepare for the Coming of CBD Beverages

CannabisNewsWire Editorial Coverage: CBD-infused beverages look set to hit the market in a big way in 2019.

  • Cannabidiol (CBD) is widely used in health and wellness products after spectacular growth in recent years.
  • Several companies are lining up to launch CBD drinks following legal changes in the United States and Canada.
  • Integrating these new offerings into wider product lines is accelerating CBD’s race for mainstream attention.

Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile) is one of the first to launch, with a CBD coffee coming in May and a CBD water in the works. The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX.V: WTER), which is constantly growing its U.S. distribution network, plans to add a CBD bottled water to its range. The New Age Beverages Corporation (NASDAQ: NBEV) is adding CBD to its line of organic cold coffees and teas. Heineken (OTCQX: HEINY) has also entered the market by developing a cannabis-infused sparkling water through Lagunitas, its U.S. craft brewer. And the biggest investment in the overall cannabis space has come from Constellation Brands Inc. (NYSE: STZ), which has invested $4 billion in a Canadian cannabis company.

To view an infographic of this editorial, click here.

Crossing the Boundary Between Two Industries

The most exciting new developments in business often come when separate trends or industries combine. For example, it was the combination of previously separate cameras, phones and portable music that brought us the smartphone, a technology that has transformed our lives. And while not every combination will be as socially disruptive as that computer in your pocket, each one brings new possibilities.

One of the hot crossover moves this year is the combination of the markets for beverages and for cannabidiol (CBD). The emergence of CBD over the past few years has transformed the cannabis space and allowed hemp producers to reach beyond their original markets. Beverages continue to be a powerful industry, in part through sporadic bursts of innovation such as the rise of energy drinks. Now one of those bursts is coming again as these two trends combine to produce CBD-infused drinks.

The Rise of CBD

In many ways, the popularity of CBD has caught businesses by surprise. Only a few years ago, it was an obscure chemical compound found in cannabis and hemp, not even the part of cannabis that got users high. Now it’s a newsworthy growth industry, with CBD products appearing on the shelves of health shops, pharmacists and vaping stores, as well as on dedicated online outlets. The trend has also led to the rise of new companies as well as investment from the likes of Youngevity International Inc. (NASDAQ: YGYI). CBD isn’t everywhere yet, but it’s feeling close.

Though it wasn’t predictable, the rise of CBD is easy enough to explain. Since cannabis legalization began in the 1990s, extensive research and development has been conducted regarding the plant. One of the results is a greater understanding of and focus on the range of chemicals found in cannabis, instead of just the high-inducing THC. As researchers started finding and reporting evidence that CBD could be beneficial for health and wellness, a gold rush began.

One of the big advantages of CBD, especially for an omnidirectional lifestyle company such as Youngevity, is that it can establish a strong presence in markets that THC can’t reach. Shops that don’t sell cannabis are sometimes willing to stock CBD-infused products. Some jurisdictions allow the sale of CBD but not cannabis. With the cannabis space gaining momentum, CBD creates a route into that sector with fewer restrictions.

This is particularly true because of hemp, a form of cannabis that doesn’t contain THC and that the federal government legalized three months ago. CBD can be extracted from hemp, making it a profitable cash crop. A Youngevity subsidiary has recently acquired a 45-acre base in Florida purely for the purpose of meeting the demand for CBD.

CBD Beverages

The U.S. government’s widespread legalization of hemp through the passage of the 2018 Farm Bill last December has opened the way for a whole range of CBD endeavors. One of the most popular trends is expected to be CBD beverages.

Youngevity, which already has a strong presence in both beverages and CBD via its CLR Roasters and HempFX brands, has made the most of its established expertise to move quickly into this promising young market. The company has added a CBD-infused coffee to its Javalution coffee brand, which will go on sale at the end of May.

“We are extremely pleased with the taste of the product,” said Ernesto Aguila, president of CLR Roasters. “It is very exciting to bring a new product to market that has so much interest within the coffee beverage category. I have not seen a door opener like this since Javalution Coffee Company created the first fortified coffees.”

CBD beverages are more than just a novelty; they’re a way to make CBD consumption better fit with people’s everyday lives and socializing, and to blaze a trail for cannabis drinks to follow. By putting CBD in drinks, manufacturers such as Youngevity are making it possible for consumers to enjoy their CBD in common social settings, such as cafes, bars and restaurants. While one person orders an alcoholic drink and another sips a soft drink, a third could be enjoying a CBD drink, all at the same time. YGYI’s move helps brings CBD consumption into the mainstream.

YGYI’s strategy has been made easier by the relaxed approach of the FDA. While that authority claims jurisdiction over the use of CBD in food and beverages, the government entity hasn’t done much to limit its use. In the 21st century, the public will to suppress cannabis use is fading, and resistance against CBD appears to be almost nonexistent. A door has been opened, and companies such as Youngevity are walking in to make the most of it.

The Bigger Beverage Business

Part of bringing CBD into the mainstream is integrating it with other product lines. As long as CBD is separate in its own corner, persuading people to give it a try will be challenging. However, when it’s presented as simply one more option among a variety of beverages, raising awareness and use of the substance stands a better chance. That’s precisely what Youngevity is aiming to do through a recently announced agreement with water company Icelandic Glacial.

The deal will see the two companies work together as exclusive cross-marketing partners for the next three years. Icelandic Glacial drinks will appear alongside Javalution and other beverages in Youngevity’s direct-sales network.

Beyond this, the companies will also collaborate on creating new products targeting the lifestyle, health, food and beverage markets. A drinkable CBD product will be at the forefront of these developments, creating a connection between the purity of Iceland Glacial’s water and the relaxing potential of CBD.

This deal hasn’t just increased Youngevity’s product range. It has given the company more opportunity for growth and product development that will appeal both to the core CBD market and to a wider beverage consumer base.

A Changing Drinks Market

It seems that CBD might become the latest big disruptor in the beverage industry, which was last shaken up by the rise of energy drinks 20 years ago.

The fastest growing premium water brand in the US, The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX.V: WTER), is distributed through more than 150,000 stores, including nine of America’s top-ten retailers by size. In 2018, the company announced a range of drinks targeting the health and wellness markets, including a water infused with vitamins and minerals and another with CBD. The company is waiting on FDA approval before launching its CBD water, but once the product is ready to go, it will have great reach thanks to the company’s strategy of regularly increasing its distribution network.

Founded in 2016, the New Age Beverages Corporation (NASDAQ: NBEV) is a young and vibrant company with a focus on healthy drinks produced in an environmentally and socially responsible way. In January, the company announced a deal for the distribution of CBD-infused beverages under its Marley brand. The Marley range of organic cold coffees and teas is already an established brand for New Age Beverages and a natural fit for entering the CBD market.

Hi-Fi Hops, Heineken’s (OTCQX: HEINY) cannabis beverage, was launched last year in two versions: one with 10 mg of THC and one with 5 mg of THC and 5 mg of CBD. The product is sold in California’s cannabis dispensaries and is the result of a collaboration between AbsoluteXtracts, a manufacturer of cannabis-based products, and Lagunitas. “The idea of being a part of a no-calorie beverage infused with cannabis seemed like a perfect next step in our product innovation and a natural way to marry our past with our future,” said Lagunitas CEO Maria Stipp.

Beverage giant Constellation Brands Inc. (NYSE: STZ), which owns Corona beer and Svedka vodka, has made the biggest financial commitment so far to advancing CBD beverages. The company has invested $4 billion in Canopy Growth Corporation, one of Canada’s largest cannabis producers. The two companies will be working together to produce cannabis drinks, giving the sector a significant boost to its public profile thanks to Constellation’s marketing reach.

CBD drinks are a natural combination of two popular consumer sectors, and with so many companies invested in them, this looks likely to be the year they take off.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Direct Selling Companies Prove Attractive for CBD Market, Drawing Large Non-Endemic Cannabis Industry Partners

CannabisNewsWire Editorial Coverage: With experts such as the Brightfield Group predicting the hemp-derived CBD (cannabidiol) market will reach $22 billion by 2022, major industry players such as Anheuser-Busch are seeing value and viability in the direct selling approach to selling CBD products.

  • With a predicted 130 percent compound annual growth rate (CAGR) over the next three years, the hemp-derived CBD industry looks primed to explode.
  • The direct selling approach to selling CBD products pioneered by brands such as Youngevity International is attracting the interest of large-scale companies.
  • Given new medical studies proving the efficacy of daily CBD intake, the market appears ripe for companies with vested interests in other lifestyle markets.

Following the passing of the groundbreaking 2018 U.S. Farm Bill that legalized the industrial cultivation of hemp nationally, scores of companies not endemic to the cannabis industry are looking for ways to enter the booming CBD market. Partnerships and acquisitions look to be one of the most promising strategies, with many savvy companies utilizing the direct selling route originated by brands such as Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile), a leading omni-direct lifestyle company. New Age Beverages Corporation (NASDAQ: NBEV) recently merged with a direct selling company to distribute its CBD products, while beer giant Constellation Brands Inc. (NYSE: STZ) poured a $4 billion investment into Canadian cannabis company Canopy Growth Corporation (NYSE: CGC) (TSX: WEED). Anheuser-Busch InBev (NYSE: BUD) (OTC: BUDFF) also partnered with a leading Canadian cannabis producer to research cannabis-infused drinks and owns 20 percent of Icelandic Water Holdings, which recently entered into an exclusive joint-marketing/development agreement with Youngevity to develop and sell CBD-infused products.

To view an infographic of this editorial, click here.

A Market Primed to Skyrocket

The recent deregulation, legalization and proliferation of the cannabis industries in the United States and Canada made 2018 a landmark year for those industries, creating an ideal scenario for an astronomical growth rate. Canada’s recent move to legalize recreational marijuana and the United States’ decision to legalize the industrial cultivation of hemp nationwide has experts forecasting the global cannabis industry to exceed $39 billion by 2023 and possibly exceed $95 billion by 2026.

Within that market, the hemp-derived CBD segment will likely grow at an even faster rate, with that growth buoyed by the fact that it doesn’t have to pass any state legalization hurdles across the United States. Brightfield Group expects the hemp-CBD industry’s growth to outpace the rest of the cannabis industry combined, and Hemp Business Journal estimates the hemp market to grow around 700 percent by 2020. With the meteoric growth predicted, companies such as Youngevity International Inc. (NASDAQ: YGYI), which already have established direct-selling channels that can nimbly adapt and upscale marketing, production, and delivery, could see a boon in business.

Direct Selling Method Attracting Corporate Giants

Given the nascent nature of the cannabis industry, many consumers are just learning about CBD products, meaning that growth within the industry is happening in the most organic fashion possible: word-of-mouth marketing. Brightfield Group notes that more than 50 percent of CBD consumers in all U.S. regions first learned about CBD from friends or family, which makes direct selling companies a “fantastic fit” for the CBD industry.

Studies by Direct Selling News show that direct selling companies already lead the global market in sales of CBD products with more than $300 million in annual sales. Therefore, the interest of larger, non-endemic companies in the direct selling model of brands such as Youngevity only makes sense and may signal that, as the cannabis market continues its stratospheric growth, so too will the direct selling sector within the industry.

Increased Medical Studies Cause Increased Interest in CBD

One of the main driving forces behind the rapid increase in popularity in CBD globally is increased awareness by consumers of the widespread medical uses of CBD. Research has shown that CBD, particularly when used daily, can help treat and prevent symptoms of Alzheimer’s disease, chronic pain, anxiety, insomnia, arthritis, epilepsy and a slew of other ailments.

Given that, companies such as Youngevity — which has the ability to deliver CBD in convenient packaging and applications for daily use — may have an upper leg when it comes to profiting off the growing trend. Knowing that, it makes sense that Youngevity recently announced an exclusive joint-marketing agreement with Icelandic Water Holdings, a company in which Anheuser-Busch has 20 percent ownership.

Youngevity and Icelandic plan to develop and sell CBD-infused dietary supplements, children’s drinks, pet products, and coffee products via Youngevity’s direct selling platform. This move seems to validate not only the viability of the direct selling model in selling CBD products but also the potential windfall businesses already established in other lifestyle industries may experience by integrating into the CBD sector.

Lifestyle Direct Selling Companies Poised to Capitalize on Expanding CBD Market

Globally, the direct selling market is growing. Research by Euromonitor shows that the direct selling market is expected to reach $163 billion by 2020, with the largest portion of that business coming from the wellness industry. Given the aforementioned promise of the CBD market in the direct selling industry, along with the expected continual growth of the direct selling industry at large, it only makes sense that direct selling companies poised at the intersection of the cannabis, wellness and other lifestyle industries may be best suited to capitalize on the inclusion of CBD in other industries.

Youngevity could be an ideal example of just such a company. The direct selling expert has already established a sterling presence in the coffee industry through its wholly-owned subsidiary CLR Roasters, a proven farm-to-cup pipeline that can be quickly and easily adapted for hemp cultivation. Its holdings in other markets ripe for CBD inclusion such as the beauty and wellness industries, Youngevity may be best positioned to harness the incredible growth in the CBD market, particularly via large-scale corporate partnerships and mergers.

CBD Market Continues to Draw Non-Endemic Interest as Direct Selling Flourishes

New Age Beverages (NASDAQ: NBEV) recently merged with the direct selling company Morinda with the stated intent to sell CBD products through Morinda’s direct selling model. This appears to be a solid endorsement of the viability of direct selling in selling CBD. Created in 2016, New Age has developed a brand portfolio competing in the highest growth segments of the beverage industry and has created the only one-stop-shop of healthy beverages. By combining with Morinda, New Age plans to rapidly grow its brands by adding a direct-to-consumer infrastructure and market access to 60 countries around the world.

Constellation Brands (NYSE: STZ) has similarly shown that the beer industry is keenly interested in the CBD market. It recently invested $4 billion in Canadian cannabis producer Canopy Growth (NYSE: CGC) (TSX: WEED), telling U.S. lawmakers it was “extremely bullish, if not more bullish” on the prospect of selling CBD-infused drinks in the United States. following the nationwide legalization of industrial hemp cultivation via the 2018 U.S. Farm Bill. Given its positioning as a premium beer, wine, and spirits company, Constellation’s interest in the market may signal that other large corporations in the premium beverage market may see viability in CBD.

Canopy Growth was the first cannabis company in North America to be publicly traded, then followed that milestone by becoming the first North American cannabis company to diversify its platform to include both greenhouse and indoor growing, to acquire a major competitor and to be listed on the Toronto Stock Exchange. Through its subsidiary, Canopy was also the first cannabis company to introduce the now-standard concept of compassionate pricing, making medical cannabis more affordable for patients.

Anheuser-Busch Inbev (NYSE: BUD) (OTC: BUDFF), the massive brewer that makes Budweiser Bud Light, and more than 500 other beer brands, has shown a keen interest in the CBD market. The company recently partnered in a $100 million joint venture with Tilray Inc., a leading Canadian cannabis company, to research cannabis-infused drinks for the Canadian market. Currently the partnership is limited to Canada, with the companies making decisions regarding the commercialization of the beverages in the future. Anheuser-Busch said it would participate in the project through its subsidiary Labatt Breweries of Canada.

The recent nationwide legalization of hemp cultivation in the United States, as well as the nationwide cannabis legalization in Canada, has created a rapidly expanding CBD market. With the proven success of direct selling companies in selling these products, it seems the direct selling industry will continue to help propel the CBD market as large-scale, non-endemic companies look for ways to gain entry into the market.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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www.CannabisNewsWire.com
303.498.7722 Office
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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Industry Stays in Spotlight with Ongoing Developments

CannabisNewsWire Editorial Coverage: Profitability and more widespread legality are drawing fresh investment to the cannabis sector.

  • Major investors and outside companies are putting big money into cannabis.
  • Undervalued companies provide good opportunities for new investors in the sector.
  • Following the legalization of recreational cannabis in Canada, companies in the United States are seeing even larger market caps.
  • As attitudes change, more cannabis companies are expected to soon be listed on major U.S. exchanges.

With a strong pick-and-shovel strategy alongside recent direct investment in cannabis, Generation Alpha, Inc. (OTCQB: GNAL) (GNAL Profile) is among the cannabis companies seeing good growth. Tilray, Inc. (NASDAQ: TLRY) is moving to benefit from fresh investor interest through public offerings in Canada and the United States. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has benefited from a substantial investment from Constellation Brands, Inc. (NYSE: STZ), the result of a trend in which U.S. alcohol and tobacco companies eye up cannabis. The industry’s upward trend is also reflected in the soaring revenues of Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON).

To view an infographic of this editorial, click here.

The Mainstreaming of Cannabis

A state-legal cannabis industry has existed in North America for more than 20 years. Since the legalization of medical marijuana in California in 1996, the industry has spread at a growing rate. The majority of U.S. states now allow its sale for medical purposes. One-fifth of the states, plus all of Canada, have legal recreational cannabis markets. Yet the cannabis industry remains on the fringe of the American economy, largely separate from the work of mainstream businesses and investors.

That’s now changing. Growing numbers of investors are putting money into cannabis, cannabis companies are able to raise substantial capital for growth initiatives, and large enterprises have taken an interest in cannabis-focused ventures with a view to establish partnerships and make investments. With these changes, cannabis becoming fully integrated into financial markets appears to be a logical next step.

The Acceptable Face of Cannabis

Over the past few years, the cannabis industry has seen growing acceptance of its place in society and the economy. This is due in no small part to the professionalism of the companies working in the sector, including companies such as Generation Alpha, Inc. (OTCQB: GNAL).

Generation Alpha started out as a support provider for the cannabis industry, taking a basic supply approach to the business. A vertically integrated technology innovator, the company developed, manufactured and distributed products and solutions for cannabis growers, which were springing up across the United States. As a supplier of horticultural and lighting equipment, GNAL provided essential supplies that cannabis cultivators relied on to grow their businesses.

Generation Alpha has seen rising investment in its organization. As recently as April, it announced a $25 million in investment from an existing shareholder under its previous name of Solis Tek. Other cannabis companies have also seen substantial investments over the past year.

The most practically and symbolically significant is the investment of $4 billion in Canadian company Canopy Growth by American beverage giant Constellation Brands. Not only does this move represent a huge financial boost for the company, but it also signifies an important moment for the entire industry. This massive investment from a beverage manufacturer reflects the growing interest of tobacco and alcohol companies in cannabis and their willingness to risk money in a relatively new industry, possibly signifying a bigger wave of change coming down the line.

Undervalued Assets

There’s a marked disparity between Constellations Brands’ investment in the sector and that recently received by Generation Alpha and other cannabis brands. The reason is likely because Constellation has recognized what others have not — many cannabis companies may be undervalued.

It’s hard to judge the value of assets in an industry that’s going through such big changes. But looking at the fundamentals, it’s easy to spot places where value may not yet be recognized.

Generation Alpha’s move into cultivation and processing of cannabis is an example of this. The company recently acquired a cultivation and processing facility in Phoenix, Arizona. GNAL is using its experience in the support side of the industry to turn this 70,000-square-foot space into a technologically advanced growing facility. With the site scheduled to become operational in the first half of 2019, the profit from this is decision should soon be realized.

The recent legalization of recreational cannabis in Canada this October showed the stark imbalance between supply and demand in the cannabis market. Within weeks, the country was facing a cannabis shortage as consumers rushed to enjoy a legal high. Similar patterns are likely to play out in U.S. states as legalization — whether for medical or for recreational purposes — spreads across the country. If, as many expect, U.S. Attorney General Jeff Sessions’ departure leads the Trump administration to a more liberal stance, then rising demand is even more likely, ensuring both an eager market and a good price for the product coming out of Generation Alpha’s facility.

And then there’s the long view. Big businesses now have a vested interest in cannabis. This interest will naturally lead to heavier lobbying for reform of anti-cannabis laws; not just in the United States, but around the world. The next decade will likely be a time of huge global growth for the industry, thanks to social and political change. The value of companies such as Generation Alpha could grow significantly as these pioneering cannabis companies set their sights on becoming the backbone of a mature global industry.

The Canada Effect

Events in Canada provide the surest signs of the coming shift.

As the first G8 country to legalize recreational cannabis, Canada is setting an example for the world, converting cannabis consumption from a drain on law enforcement into an asset that provides tax income for the government. The change hasn’t just affected Canadian companies; it has also touched those in the United States, including Generation Alpha. Both north and south of the border, the market cap for cannabis has grown as investors strategically place their money into the burgeoning industry.

Canada is now leading the way in cannabis. While it might take time for the United States to catch up at a federal level, American companies are already feeling the benefits.

Onto the Exchanges

All this growth means more companies listing on major markets. Together with a broader social shift in attitudes towards cannabis, a change at the top of the economy is extremely likely. As the power of cannabis companies grows, it’s surely only a matter of time before major U.S. exchanges add more American cannabis companies. With that, these companies will be able to tap into even more resources through the finance of major investors. And once the inconsistency between federal and state law is addressed, major banking will add another route to funds.

Companies with strong, proven strategies will be best placed to benefit from this surge in funding. With its core pick-and-shovel strategy, Generation Alpha fits the bill. By supplying goods and services to cannabis growers, GNAL will be ideally positioned to profit from the growth while keeping a buffer between its core business and shifts in the price of cannabis. With innovations such as its high-efficiency LED lighting system, the company will be a strong competitor among other cannabis support companies.

One of the companies looking to turn cannabis’ credibility into financial resources is Tilray, Inc. (NASDAQ: TLRY). A prominent provider of medical marijuana, Tilray has used a well-developed research and design program to gain an edge in the fast-growing industry. It’s currently using public offerings in Canada and the United States to seek fresh funds from investors, but its ambitions aren’t limited to North America. The company has customers on five continents, thanks to the growing international acceptance of medical cannabis.

Through early moves in the sector, Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has established itself as one of the big names in Canadian cannabis. Working both alone and in partnership with others, Canopy Growth has evolved into a multifaceted company with a strong investment in brand and product differentiation.

Canopy Growth Corp. made news earlier this year when it received a second substantial round of investment from U.S. beverage company Constellation Brands, Inc. (NYSE: STZ). That $4 billion investment has made Constellation Brands a substantial shareholder in Canopy Growth, owning a third of the company. The investment was a major coup for the cannabis company, giving it the sort of resources that most of its competitors only dream of. But it may also prove to be an important moment for Constellation Brands, as it adds cannabis and cannabis-infused products to its repertoire of alcoholic drinks.

As tobacco and alcohol companies look for ways to deal with their own falling sales, it’s likely that a growing number will turn to cannabis, providing fresh investment for the market. When they do, there will be plenty of strong options. The growth of medical and recreational markets has led to impressive revenue growth for companies. For example, Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) saw revenues increase by 186 percent in the third quarter of 2018. By partnering with other businesses, increasing its cultivation space, and getting involved in the Latin American cannabis market, the company has been able to keep expanding its operations.

Big money is flowing into the cannabis industry. As its prestige rises, those funds are set to keep growing for a long while yet.

For more information on Generation Alpha, visit Generation Alpha, Inc. (OTCQB: GNAL)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Ignores Wider Stock Market, Follows Its Own Path

CannabisNewsWire Editorial Coverage: Following a tumultuous month, cannabis continues to carve its own path rather than following the lead of other stocks.

  • As the stock market plummeted earlier this month, cannabis companies stayed strong, buoyed up by legislative changes in Canada.
  • The cannabis market appears set for continuing growth as it expands into expected sales worth billions of dollars across North America.
  • While it still faces regulatory challenges in some locations, this market sector is preparing for corporate big players to move in.

Companies with varied interests are moving into the cannabis sector, such as lifestyle business Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile). While the stocks of some cannabis players such as Tilray, Inc. (NASDAQ: TLRY) appear overvalued, this reflects problems with valuation tools more than the stocks themselves. The sector has developed its own heavy hitters, such as Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), whose millions of square feet of growing space are now leading to sales into the United States as well as Canada. Some companies are focused only on medical products, such as GW Pharmaceuticals Plc (NASDAQ: GWPH) with its cannabis-based prescription medicines. But it’s the recreational side of the cannabis space that has drawn in Constellation Brands Inc. (NYSE: STZ), a huge beverage maker that has invested $4 billion in a cannabis cultivator.

To view an infographic of this editorial, click here.

Cannabis Stocks Versus the Market

It’s been an interesting month for cannabis stocks.

Three weeks ago, cannabis looked like a particularly strong bet. As the wider stock market fell, cannabis stayed strong. Some cannabis stocks even saw significant rises in value amid promising developments from those companies. Legalization in Canada undoubtedly played a part in their success, with the run-up to Oct. 17 seeing predictions of massive profits for cannabis companies. But some commentators argued that it was part of a bigger trend in which cannabis stocks are among those that don’t follow other market indicators.

Then came the week following legalization and a notable fall in the value of cannabis shares. The hype around these companies was punctured by market shifts. Had they fallen in line with the rest of the market? Was the reality of Canadian legalization catching up with the imagined utopia? Or was this simply a downturn for a sector trending separately from competitors?

More to the Market

To understand shifts in cannabis shares, one needs to take a look at the state of the industry.

The cannabis industry isn’t self-contained. The spread of legalization and the emergence of derivative products has created a diverse sector combining exciting startups with older companies dipping their toes in a novel market. Alongside the pure-play cannabis brands, there are pharmaceutical businesses and even lifestyle companies such as Youngevity International, Inc. (NASDAQ: YGYI).

These companies are selling three distinct products.

First, there’s medical cannabis. Supplied on prescription to deal with pain and nausea, cannabis’ medical properties remain hotly debated but that hasn’t stopped the state-legalized use of it from spreading across more than half of the United States.

In material terms, recreational cannabis has exactly the same chemical makeup as some of the medicinal products. What’s primarily different is the way that it’s marketed, sold and used. This is cannabis used for fun and relaxation. It’s now available by law in nine U.S. states and Canada.

Then there are the derivative products. Most, including those sold by Youngevity, use cannabidiol (CBD). Cannabidiol is an active ingredient that doesn’t get users high. CBD can be extracted from cannabis, both from the marijuana plant as well as its tetrahydrocannabinol (THC)-free variety known as industrial hemp. Research into CBD is still in its infancy, but it is already used in a wide range of health and wellness products.

Over the past 20 years, cannabis has grown from a black market drug to a major public market product in North America, with growing influence in the rest of the world. From the first stirrings of a medical market to the current state of affairs in which a G8 country has a recreational market and the White House is hinting at U.S. reforms, it’s been a fast ride. As a result, there’s still a lot of uncertainty about cannabis’ destiny.

Where Now for Cannabis Shares?

The idea that weed doesn’t correlate to other stocks seems to have some truth. This was shown by the events of early to mid-October, when legal reform and individual brand announcements set it on an opposite trend from other shares. While the Dow has headed towards its worst month since May 2010, cannabis stocks have carved their own path. It looked like good news for companies such as Youngevity.

For now, cannabis is offering a real challenge for traders. Cannabis stocks look overvalued based on traditional valuation metrics such as price-to-book ratio, price-to-earnings ratio or price-to-sales ratio. But these metrics are based on past results, not future valuations. Given ongoing changes, the future performance of cannabis companies will be nothing like the past. Whole new customer bases are opening up, bringing staggering potential for growth.

In the next month, there will be votes on whether to allow recreational cannabis in North Dakota and Michigan, at least one of which is likely to pass. North of the border, Canada is planning to legalize cannabis-infused edibles next year. That means a whole new sector of profit opportunities.

Then there’s the impending arrival of big players in the market. Big pharmaceutical and consumables companies haven’t paid much attention to cannabis yet, as its value is relatively low compared with their existing revenues. But with the market expanding, both groups may get involved — beverage and tobacco companies pursuing a natural spin-off from their existing businesses and big pharma in pursuit of new medicines. Those are moves that will bring disruption unrelated to wider markets.

As a lifestyle brand selling both coffee and cannabis derivatives, Youngevity has already placed itself to enter this cross-over market. And with its new HempFX™ line now available online, it’s moving fast to profit from changes in the cannabis market.

Riding High

Alongside medical and recreational marijuana, CBD is seeing huge growth. Youngevity CEO Steve Wallach has spoken about the huge potential of CBD products in direct sales channels, not just in America but around the world. His company is riding high on this trend with the announcement of new CBD products.

Youngevity’s first offering in the CB market is the HempFX™ product line, a trio of three different hemp-derived cannabidiol oil products that contain organically grown products in proprietary formulas designed for a variety of everyday use.

The products include Soothe™, a blend of botanicals designed to relieve muscles by calming aches and pains; Uplift™, which combines CBD with St. John’s Wort to improve cognitive performance and mood; and Relax™, which combines CBD with a variety of herbs and melatonin to bring relaxation and a better night’s sleep.

Cannabis’ Long-Term Prospects

The signs remain good for cannabis companies. One study predicts that sales in Canada could reach $7.1 billion in 2019, $4.3 billion of that coming from the recreational market.

The boss of cannabis company Tilray, Inc. (NASDAQ: TLRY) believes that the market in the United States will soon be worth $150 billion. A leading player in the medical cannabis market, Tilray has established agreements with Canadian partners that will let it profit from changes in that country, changes that could radically improve its earnings.

Other companies are also making significant movements in the market. Drinks giant Constellation Brands, Inc. (NYSE: STZ) has invested $4 billion in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), showing that it is serious about moving into the cannabis market. Canopy Growth is one of Canada’s largest cannabis companies, with 5.6 million square feet of growing space. Like Tilray, it’s looking at the wider North American picture and carried out a legal transfer of cannabis to the United States, the first such transfer with a Drug Enforcement Administration (DEA)-issued permit.

Canopy Growth’s strong performance has drawn the attention of companies outside the cannabis sector, leading to the headline-making investment from Constellation Brands earlier this year. Many commentators have talked about this as a chance for Constellation to produce cannabis-infused beverages, a largely untapped market likely to take off once new rules come in Canada next year. But it may represent a broader play, as alcohol and tobacco companies aim to take control of cannabis and fill the gaps as sales of their existing lines fall.

Some companies are focused only on the medical market. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created the first Food and Drug Administration (FDA)-approved cannabis-based prescription medicine as part of its substantial research and design program. Even as the recreational market and CBD steal its thunder, the medical market remains strong.

Clearly, there are still big uncertainties for the cannabis market. Questions about regulation and how far legalization will spread hang over everybody’s heads. Yet companies are thriving despite this, showing the rewards that so often come with risk and innovation.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Stocks Defy Gravity During Market Plunge

CannabisNewsWire Editorial Coverage: In the recent broad stock market sell-off, one sector resisted the market plunge.

  • Cannabis stocks shined during the market rout.
  • Global cannabis market is expected to exceed $146 billion by 2025.
  • Cannabis market analysts predict CAGR of 34.6 percent during next seven years.
  • Cannabis markets spawn dynamic ancillary businesses.

Multiple marijuana stocks shined in the sea of red during mid-October’s rout, racking up gravity-defying gains. The sizzling sector is sending signals of being uncorrelated with markets that are driven by the imperatives of institutional traders. Being untethered from the vagaries of institutional intentions is most likely advantageous for individuals intent on profiting from the impending cannabis tsunami. Marijuana sector growth has spawned a realm of new dynamic businesses in previously unimagined arenas. Leveraging the immense opportunity, NUGL, Inc. (OTC: NUGL) (NUGL Profile) has developed a first-of-its-kind, cutting-edge search app and comprehensive online directory exclusively for the marijuana industry. Heralded as a global first-mover cannabis connectivity business, NUGL just signed a deal that significantly expands its footprint and reach. The global growth in marijuana has also spurred investments in the sector by such well-known names as Constellation Brands Inc. (NYSE: STZ) and The Scotts Miracle-Gro Company (NYSE: SMG),and has launched marijuana-centric companies such as Terra Tech Corp. (OTCQX: TRTC) and KushCo Holdings, Inc. (OTCQB: KSHB).

To view an infographic of this editorial, click here.

Cannabis Jackpot

Cannabis is understandably generating intense global interest from business interests and investment communities. It’s impossible to ignore a market sector valued at an estimated $7 billion two years ago that’s now projected to exceed $146 billion worldwide by 2025 — a 20-fold increase. The stratospheric growth in the global marijuana market is anticipated to achieve a mind-boggling CAGR of 34.6 percent between 2018 and 2025.

Marijuana markets started gaining global traction in tandem with increased consumer demand for medicinal marijuana utilized for chronic pain and myriad other disorders. Medical marijuana was, in fact, the largest segment of the cannabis sector in 2016, and its value is expected to surpass $100 billion by 2025. The legalization of recreational marijuana use in multiple states and various countries has propelled demand into overdrive. The industry is now on track to bring in $8 billion by the end of this year. The research and development of safer forms of ingesting marijuana such as tinctures, oils, vapes and other edibles are expected to bolster market growth.

Connecting All Things Cannabis

On the cutting edge of the development of organic data analytics in the cannabis industry, NUGL, Inc. (OTC: NUGL) is focused on clearing up consumer confusion about the wide number of product options and becoming an integral asset to the burgeoning sector. While other attempts to connect and codify the spider web of interactions in the legal cannabis community have fallen short of expectations, NUGL expects its first-to-market, best-in-class technology platform to snag the lion’s share of this invaluable new market.

Since cannabis ads are prohibited on most social media networks, including Facebook, NUGL seized the opportunity to create the largest, most robust cannabis business networking platform in the world. The company’s internet-based search apps and online directory are the first ever to deliver global cannabis users networking power with unbiased search results, eliminating paid placement listings and skewed reviews. NUGL’s networking platform employs both business-to-consumer and business-to-business applications, providing the tools the industry needs to connect both pieces of the industry together. This allows all cannabis services, events and brands the ability to network and bring their companies to market.

NUGL’s platform is designed to serve cannabis-related businesses, products, services and users by building a community that meets the needs of each segment. NUGL puts the power of connection and self-promotion back into the hands of cannabis companies, giving them the tools to build a dedicated profile featuring their brands and services. The NUGL cannabis community is experiencing significant growth as dispensaries, strains, doctors, lawyers, service professionals, vape shops, hydro stores and brands are joining daily.

Profiles for Every Community Member

NUGL offers four types of profiles: brands, events, services, and retail. Each of these profiles can connect and interact with each other, allowing an unprecedented level of communication between each segment of the cannabis market. For instance, using the NUGL app, brands can explore and develop their distribution capabilities by connecting with retail locations. Brands can even use the app to market their products, letting stores know about special order discounts, specials, and other marketing information.

When a brand and retail store have inked a distribution deal, the store can benefit by being included on the NUGL store locator. That means that when a user searches for a specific cannabis brand, the retail store appears on a source map, driving consumers to the location.

Cannabis service providers can use NUGL to reach out to everyone on the app, advertising the unique services they provide. For instance, a CPA firm that specializes in the cannabis market can communicate directly with the niche clients it is looking for. And finally, events such concerts or other occasions that either focus on or are open to cannabis users can extend invitations and attract participants.

NUGL’s iOS and Android apps are available in the Apple and the Google Play stores, and the company is intensely consumer focused. Future software development is directed and driven by community feedback. Reinforcing its credo of “for the people, by the people,” NUGL just announced major updates to its app in response to community feedback asking for a more robust mobile application.

In tune with consumer input, NUGL proactively launched major mobile application updates that included, in part, newly redesigned profile pages and updated brand profiles. The company also added new swipe gestures and social media links to profile pages, as well as menu tabs and social share links to profiles. And NUGL simplified search functions with an updated search bar, new filters, improved brand search functionality and redesigned icons.

Multiple Platforms Expand Reach

There’s little doubt about consumer demand for cannabis or the void of platforms to efficiently connect consumers to cannabis-related companies and services. NUGL is rapidly filling that void and expanding at breakneck pace. NUGL’s user sign-ups and mobile app downloads in September eclipsed expectations and surpassed industry standards for comparable tech start-ups.

“We not only saw great returns on our initial spend but also saw the beginning of a viral push. Our next step is to scale our marketing model and watch NUGL grow its user base and app downloads even more,” NUGL CMO Ryan Bartlette stated.

Last month NUGL expanded its footprint and reach through a national joint venture marketing agreement with Nichols Publishing Company. NUGL is adding tens of thousands of print readers and online visitors with cannabis-centered magazines Garden & Greenhouse and Professional Marijuana Grower). Together, the magazines reach a cornucopia of small commercial growers, hobby growers, hydroponic and indoor gardeners, licensed cannabis growing facilities, processors and dispensaries. The magazines complement NUGL Magazine, which covers cannabis industry news and how it affects the cannabis community.

In a dramatic development, NUGL just announced a binding letter of intent to purchase Nichols Publishing Company. In what can be viewed as complete confidence in NUGL’s future, Nichols Publishing agreed to be acquired in exchange for $1 million in NUGL common stock. Nichols Publishing was founded by Robin Nichols more than a decade ago, and its cannabis trade magazines have grown into well-known brands. Nichols will join NUGL following the acquisition and run the publications’ operation under the NUGL name.

With clear intentions to dominate the market for global connectivity as it relates to cannabis consumers and businesses, NUGL’s decision to acquire Nichols Publishing is likely just a beginning as it expands its platforms and global footprint to synergistically support cannabis consumers and cannabis industry growth.

The Epiphany

There’s zero question about the past growth of the marijuana market, and future growth looks even brighter. Although the sector shines even during market sell-offs and marijuana stocks are reaching new highs, some say the sector is top heavy and frothy. If true, from this point forward, nascent ancillary business that feed and support consumers, services and businesses in the cannabis industry may hold much greater upside potential.

Constellation Brands Inc. (NYSE: STZ) just made the largest investment to date in the cannabis space. The company is already a leading international producer and marketer of beer, wine and spirits. With the recent $4 billion investment, Constellation looks to accelerate market position, perhaps create cannabis-infused drinks and expand its portfolio in emerging cannabis markets around the globe.

The Scotts Miracle-Gro Company (NYSE: SMG) is the world’s leading marketer of branded consumer lawn and garden products as well as hydroponic growing products. The company’s wholly owned subsidiary, The Hawthorne Gardening Company, is a leading provider of nutrients, lighting and other materials used in the hydroponic growing segment and now cannabis. The lawn and garden giant invested more than $1 billion in the past few years on a wide variety of companies that produce items connected to cannabis cultivation.

Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses to provide both medical cannabis to patients and premium cannabis to the adult-use market in Nevada and California. The company’s wholly owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce. Terra Tech’s MediFarm LLC subsidiaries are focused on medical and adult-use cannabis cultivation and permitting businesses throughout Nevada.

KushCo Holdings, Inc. (OTCQB: KSHB) is the parent company to a diverse group of business units in the cannabis, cannabidiol (CBD) and cannabis-related industries. KushCo’s subsidiaries and brands provide exceptional customer service, product quality, compliancy knowledge and a local presence in serving a diverse customer base. KushCo Holdings’ brands include Kush Supply Company, Kush Energy, Hybrid Creative and Koleto Packaging Solutions.

For more information on NUGL, visit NUGL Inc. (OTC: NUGL)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
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Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

CBD Exploding into Mainstream Wellness Products

CannabisNewsWire Editorial Coverage: Bolstered by millennia of anecdotal evidence and ever-mounting scientific validation, cannabidiol (CBD) is rapidly being integrated into myriad mainstream consumer wellness products around the globe.

  • Global cannabis market expected to quadruple to over $63 billion by 2024
  • CBD oil market to grow at CAGR of 39.19 percent through 2021
  • CBD products exploding into a wide variety of product lines
  • Diversified, sales-driven companies expected to outpace standard growth curve

Humans have used hemp, a variety of Cannabis sativa and a primary source of CBD, for more than 10,000 years in food, textiles and medicine. The world is again recognizing the therapeutic benefits of hemp extracts, and consumers are embracing cannabis-based products at a breakneck pace. Consumer demand has triggered an explosion of product innovations that range from oils and edibles to pet products and infused beverages. Intent on staying at the vanguard of the upsurge in CBD-based wellness products, sales and marketing powerhouse Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile) recently expanded its HempFX™ line with the launch of two new hemp-derived cannabidiol products. Others are entering the sector as well. Beer and spirits conglomerate Constellation Brands, Inc. (NYSE: STZ) just made the largest investment to date in the cannabis industry. AbbVie Inc. (NYSE: ABBV) was one of the first companies to enter the pharmaceutical cannabis space with Marinol, which is almost chemically identical to THC, the main component in marijuana. Lexaria Bioscience Corp. (CSE: LXX) (OTC: LXRP) offers DehydraTECH, a drug delivery platform that could be a game changer for several industries, including the recreational and medical cannabis markets. And Neptune Wellness Solutions, Inc. (NASDAQ: NEPT) recently received a Confirmation of Readiness letter from Health Canada, a key milestone in its quest to become a licensed producer of cannabis oil in Canada.

To view an infographic of this editorial, click here.

The CBD Boom

Cannabidiol is understandably generating worldwide interest from both the scientific and investment communities. It’s hard to ignore a market sector projected to nearly quadruple from about $16 billion last year to more than $63 billion worldwide by 2024. In just the United States alone, the marijuana industry could create an economic tsunami estimated to surge past $75 billion annually by 2022.

Explosive demand projections are attributed to increased public awareness about wide-ranging potential health benefits, natural pain mitigation and anti-inflammatory properties, advancements in cultivation and processing, plus the convenience and reach of online and direct retailing — all of which contribute to a global CBD oil market expected to grow at an eye-popping CAGR of 39.19 percent through 2021. The upward trend is indisputable, and corporations are jockeying for position, racing to produce a variety of CBD products, staking out distribution channels and opening a realm of possibilities in previously unimagined markets. All the projections and activity send clear signals of what’s to come.

The Mission Matters

With deep roots in health and nutrition spanning over 20 years, omni-direct lifestyle company Youngevity International, Inc. (NASDAQ: YGYI) is still dedicated to the core mission of its founder: learning how to live younger, longer. Expanding on the pioneering biomedical research of Dr. Joel D. Wallach, Youngevity is aggressively and ethically growing its business through a unique admixture of direct selling, traditional marketing, mergers and acquisitions, and stellar organic growth. The direct sales model and international roll-out strategies of Youngevity provide synergistic leverage to capitalize on the immense potential in high-growth emerging markets, exactly what’s occurring in the CBD arena.

Youngevity’s recent announcement about the launch of two new hemp-derived cannabidiol products in its HempFX line intermeshes with the company’s explosive sales growth and its mission to provide nutritional and lifestyle solutions to achieve optimum health and wellness goals. “Plant-based nutrition is fundamental to our product development philosophy,” stated Youngevity CEO Steve Wallach.

The new HempFX products expand YGYI’s CBD line and join a vast stable of more than one thousand products and services the company already offers. The new tablet-based CBD products are designed to work in conjunction with Youngevity’s Y-DR8+ proprietary water bottle system. The company’s exclusive Y-DR8 filter utilizes activated carbon cloth designed to reduce chemicals and deliver CBD in great tasting water. The portable Y-DR8 filter holds cannabidiol tablets above the water line, and YGYI’s CBD formulations are infused into the water as it flows over the tablets.

“This bottle system is intended to provide people with a revolutionary point-of-use water system for great tasting water and enables consumers to customize tap water based upon their health and wellness needs. It is a beverage technology that we expect will have broad consumer appeal and we are extremely excited to combine this technology with the benefits of hemp-based CBD,” stated Vice President of Innovation and Emerging Markets Rick Anson.

Using patent-pending extraction and bioavailability processes, YGYI’s HempFX products contain only U.S. organically grown non-GMO hemp. The full-spectrum phytocannabinoids are third-party tested to ensure only the highest quality allergen-, gluten- and THC-free hemp oils are produced and sold to the public in compliance with good manufacturing practice (GMP) standards.

HempFX Hydration™ – Sleep is formulated to improve sleep patterns and deliver the health benefits of CBD. YGYI’s high-quality cannabidiol formulation contains melatonin and is administered using the company’s proprietary beverage enhancement tablet. HempFX Hydration – Pure contains 25 mg of organic, full-spectrum, hemp-derived cannabidiol oil per tablet and quickly dissolves in water as it is consumed.

“Plant-based nutrition is fundamental to our product development philosophy,” Wallach stated. “That’s why we’re especially excited to enter this rapidly growing market with two new products.”

HempFX Hydration – Sleep and HempFX Hydration – Pure are expected to be available next month, and sales may well outperform YGYI’s three other hemp-based products, which sold out of preproduction quantities during the company’s August sales convention.

Sales and Marketing Powerhouse

Recognized as one of the Top 100 Global Direct Selling Companies, Youngevity is a sales powerhouse that more than doubled revenues from $75 million in 2012 to $166 million in 2017. The company shows no signs of slowing down, posting an 8.7 percent revenue increase in Q2 YTD 2018 over Q2 YTD 2017 and a 9.6 percent increase in gross profits over the same period.

The NASDAQ-listed company, added to the Russell Index in June, operates in large, scalable global market segments driving significant revenue growth in skin care, anti-aging, weight loss, brain health and coffee. The expansion into CBD products appears likely to boost revenues even further, potentially placing the company at the forefront of the CBD boom. Making quality products is only one aspect of carving out space in this new sector; sell-through is the more important criteria to measure success during the upswing.

Youngevity’s unique marketing hybrid buttressing the direct-selling business model with powerful e-commerce and social selling initiatives has created a global panoply of products and services under one corporate umbrella that supports healthy, empowered lifestyles. Youngevity now offers more than one thousand high-quality nutritional and lifestyle products and services through a wide range of channels in fast-growing retail categories:

  • Health and Nutrition
  • Home and Family
  • Food and Beverage
  • Spa and Beauty
  • Fashion
  • Essential Oils
  • Photo and Scrapbooking
  • Services for Home and Business

One thing that makes Youngevity so unique is our broad product offering,” President and CFO Dave Briskie stated during the company’s 2018 convention. “It allows us to reach many markets and gives our customers a wide range of high-quality lifestyle products. We will continue to do our best to align our products to the needs of our market.”

The Epiphany

There’s little doubt about the trajectory of the global CBD market. Some have likened the impending surge of industry players to the dot.com era — some will become Amazon.com while others will disappear faster than Pets.com. Investors looking to capitalize on the immense opportunity ahead are likely best served by strategic positions in diversified companies driven by sales and galvanized by a mission to excel.

Others in the Arena

Constellation Brands, Inc. (NYSE: STZ) just made the largest investment to date in the cannabis space. The company is already a leading international producer and marketer of beer, wine and spirits. With its $4 billion investment in Canopy Growth Corp. (NYSE: CGC), Constellation looks to accelerate its market position and expand its portfolio in emerging cannabis markets around the globe.

Primarily a pharmaceutical company, AbbVie Inc. (NYSE: ABBV) offers a synthetic cannabis-based drug on the market. Marinol is an FDA-approved, prescription drug used to alleviate nausea or vomiting for chemotherapy patients; it may also help AIDS patients who have lost their desire to eat.

Lexaria Bioscience Corp.’s (CSE: LXX) (OTC: LXRP) DehydraTECH drug delivery platform features a patented, cost-effective delivery mechanism that improves the taste and smell — as well as the bio-absorption — of ingestible substances. Cannabinoid-infused edibles and concentrates represent the fastest-growing segments of the cannabis industry, and DehydraTECH may position Lexaria as a prime partner for offerings in these spaces.

Working to develop unique extracts and formulations in the legal cannabis wellness field, Neptune Wellness Solutions, Inc. (NASDAQ: NEPT) is well on its way to obtaining official approval to move forward. The Confirmation of Readiness letter “brings us to the threshold of becoming a Licensed Producer of cannabis oil in Canada, and is a very exciting moment,” said Neptune president and CEO Jim Hamilton. “Our entry into the legal cannabis industry leverages our established expertise in the development of innovative Omega3 oil products, navigating global regulatory frameworks, worldwide commercialization of wellness solutions, and production of high-quality extracts.”

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Growing Cannabis Sector Sees Surge in Acquisitions

CannabisNewsWire Editorial Coverage: The ongoing growth of the cannabis sector is now driving a surge in acquisitions, as companies compete to control a burgeoning market.

  • The cannabis sector has seen incredible growth, reaching $10 billion this year in the United States alone.
  • This has led to a wave of mergers and acquisitions, as companies strengthen their positions.
  • This pattern is accompanied by expansion into new markets and investment in smaller companies by their larger cousins.

Hydroponic supplier Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) is in the process of acquiring two hydroponic companies, improving its already strong position as a provider of vital cultivation equipment. Industry leader Aphria, Inc. (OTCQB: APHQF) is making acquisitions in Jamaica, Latin America, and Canada, with the latter giving it access to European markets. Cannabis outsider Constellation Brands, Inc. (NYSE: STZ) has invested heavily in cannabis grower Canopy Growth, with an eye to creating cannabis-infused beverages. In Florida, MedMen Enterprises, Inc. (OTCQB: MMNFF) has acquired cultivation and retail assets, expanding its reach from three to four states. And Emerald Health Therapeutics (OTCQX: EMHTF) is set to acquire the remaining shares of Northern Vine Canada Inc., in a move that gives Emerald full ownership of Northern Vine.

To view an infographic of this editorial, click here.

Acquisitions Heating Up in the Cannabis Sector

For a new sector of the economy, the cannabis industry has grown at a fantastic rate. In the relatively few years since medical cannabis started to be legalized in North America, a multimillion-dollar industry has evolved, covering cultivators, retailers, marketing and all the support services the industry needs. The recent legalization of recreational cannabis in several U.S. states and Canada, together with the growing popularity of medical cannabis, is propelling the industry’s value into the billions.

Initially, growth was mostly driven by the creation of new companies or subsidiaries of pharmaceutical firms, as they set up new businesses in a new economic space. But in recent years, that has changed. Larger cannabis companies have started taking over smaller rivals and companies serving different parts of the market. Acquisitions are on the rise.

Consolidation in a Growing Sector

The cannabis sector is made up of a wide range of companies, from those focused on cultivation to the likes of Sugarmade, Inc. (OTCQB: SGMD), a hydroponics supply company that is making a move into the broader cannabis space.

The appearance of this range of companies has been made possible by the phenomenal growth of the market. The cannabis market in the United States is expected to be worth over $10 billion this year, 50 percent larger than it was in 2016, and that growth shows no sign of slowing. With an estimated $46 billion worth of business still existing outside legal markets, there’s vast scope for expansion as legalization spreads and consumers are drawn away from black market dealers. And that’s only in the United States, never mind the rest of the world.

As faith in the industry grows, investors are pouring in additional funding, leading to a boom in mergers and acquisitions. Some early players are cashing out, making the most of their companies’ growth to make a healthy profit and move on to something new. Others are taking over these smaller businesses, creating businesses with greater economic clout and more vertical integration.

This led to 145 mergers and acquisitions in the sector in the first half of 2018, compared with only 79 during the same period a year before. Some of these have made big news, with Aphria investing $200 million acquisitions in Latin America and Jamaica while drinks company Constellation Brands acquired a third of the equity in Canopy Growth. This shift creates even more opportunities for companies sticking in the sector, such as Sugarmade.

Acquisitions Big and Small

Based in California, Sugarmade has immediate access to one of the world’s largest legal cannabis markets and is making the most of that. One of the largest publicly traded hydroponic supply companies, its growth has been fueled by the vital role hydroponic equipment plays in the cultivation of cannabis.

Much cannabis cultivation takes place indoors, using sophisticated specialist equipment produced by companies such as Sugarmade. This gives producers greater control over growing conditions, encourages more successful crops, allows year-round production and makes it easier to secure this valuable crop.

Already a significant supplier of hydroponics, Sugarmade looks set to consolidate its position through the recently announced acquisition of two companies selling hydroponic and other cultivation supplies. This could make a huge difference to the company’s financial fortunes. Its projected revenues for 2019, previously set at $30 million, could exceed $75 million if these deals go through, more than doubling the company’s revenues.

“The hydroponic supply sector is still highly fragmented with many of the larger players not likely to reach public company liquidity events for the original entrepreneurial teams,” said Jimmy Chan, CEO of Sugarmade. “We have entered into talks with at least two of these companies for acquisition, which we believe will be highly accretive for common Sugarmade shareholders and additive to our already robust top line growth rate. We wanted to publicly disclose these discussions to ensure that all shareholders have equal access to our direction, thus our recent public filing.”

The company has set a special shareholder meeting October 10, creating an opportunity to establish more shares in the company and discuss the acquisitions. In a fast-growing sector such as cannabis, there’s little time for delay.

Investing in Others

Sugarmade’s success is largely driven by reaching new markets and supporting other companies, maximizing its potential for growth. Though U.S. based, the company has also begun expansion into the European market through online sales into the United Kingdom. Even in countries without a legal cannabis market, it is possible for hydroponics companies to sell their wares to people growing other specialist plants. And with cannabis legalization spreading globally, this allows companies such as Sugarmade to firmly establish their positions before a new market emerges.

The company is expanding its presence within the North American cannabis market by investing in industrial hemp and cannabidiol (CBD). Industrial hemp, a form of cannabis without the high, can be used for a wide range of purposes and looks set to be widely grown in the United States following the passage of the 2018 Farm Bill.

CBD, which can be derived from industrial hemp, is a chemical whose beneficial properties are only just starting to be understood and which is used in a growing range of health and wellness products. Sugarmade is investing $1 million Hempistry, Inc., a Nevada hemp company. This is expected to provide access to Hempistry shares as well as a supply agreement between the two companies.

Other businesses are also working to expand within the sector.

Aphria, Inc. (OTCQB: APHQF), one of the most successful companies in the cannabis sector, is undertaking acquisitions that will extend its reach beyond North America. In July, it announced acquisitions in Argentina, Colombia, and Jamaica worth around $200 million. Acquired through sister company Scythian Biosciences Corp., these will give Aphria reach into markets outside the United States and Canada. The company also expanded its international reach through the acquisition of Canadian company Nuuvera, which has supply and sales agreements with companies in Germany, Italy, Spain, Malta, the United Kingdom, Israel and Uruguay.

Drinks manufacturer Constellation Brands, Inc. (NYSE: STZ) is best known for beverages such as Corona, but it has recently made some surprising choices. The company has invested heavily in Canadian company Canopy Growth, moving into the cannabis market. Constellation’s approach isn’t about selling cannabis but about creating cannabis-infused drinks. These beverages are due to become legal in Canada next year. By creating a bridge between beverage manufacturers and cannabis growers, Constellation could be the first to establish widely recognized cannabis drink brands.

Cannabis manufacturer and retailer MedMen Enterprises, Inc. (OTCQB: MMNFF) shows what can be achieved by combining different elements in the cannabis supply chain. The company sees the product through from cultivation to customers’ hands, all under a carefully managed brand. This summer, it acquired dispensary and cultivation assets from Treadwell Simpson Partnership and affiliates, adding facilities in Florida to those it already owned in California, Nevada, and New York.

Emerald Health Therapeutics (OTCQX: EMHTF) owns Agro-Biotech, a licensed cannabis grower with a 75,000-square-foot indoor facility and plans to add a 500,000-square foot greeQnhouse. The company also owns 50 percent of Pure SunFarms, which is converting a licensed existing 1.1 million-square-foot greenhouse into a full-production commercial resource.

The cannabis sector has matured in recent years. As it grows within the United States and beyond, acquisitions are allowing companies to expand their options and strengthen their position in a powerful new industry.

For more information on Sugarmade, visit Sugarmade, Inc. (OTCQB: SGMD)

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