Tag: YGYI

Vertical Integration Offers Profit Potential within Growing Cannabis Industry

CannabisNewsWire Editorial Coverage: As the cannabis industry continues its impressive growth, acquisitions are leading to greater vertical integration.

  • Companies within the cannabis sector are acquiring other organizations to benefit from valuable specialist knowledge and skills.
  • Such deals allow vertically integrated value chains, as have also been applied in industries such as coffee production.
  • This comes amid wider growth in the sector, which is drawing substantial outside investment.

Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile) is following the vertically integrated model, having recently acquired a company specializing in cannabis processing machinery. Tilray Inc. (NASDAQ: TLRY) is expanding its Canadian production facilities through the acquisition of another grower. Budweiser brewer Anheuser-Busch Inbev (NYSE: BUD) (OTC: BUDFF) has partnered with Tilray to produce cannabis-infused drinks. In addition, tobacco companies are investing in the sector, providing extra funds for companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON). Specialist companies such as cannabis real estate finance company Innovative Industrial Properties Inc. (NYSE: IIPR) are also looking for entry positions in the industry.

To view an infographic of this editorial, click here.

Cannabis Companies Turn to Vertical Integration

As the global cannabis industry continues to grow — with North America taking a leading role — companies are eager to find ways to improve their productivity and stand out from the pack. A wide range of companies covering the production, processing, marketing, and sales of cannabis and cannabidiol (CBD) products are vying for a position in the space. So, what can give a company an edge?

Many are turning to vertical integration. By bringing together production, processing and distribution, companies can cut costs, improve efficiency and ensure quality control. It’s a strategy that has worked well in other parts of the economy, but can it work for cannabis?

Acquisitions for Growth

This all-under-one-roof strategy is definitely one that the management at Youngevity International, Inc. (NASDAQ: YGYI) believes in. A leading omni-directional lifestyle company, Youngevity has recently moved into the cannabis sector through investment in CBD.

CBD is one of two significant active ingredients found in cannabis. Unlike THC, which until a few years ago was the best-known of these chemicals, CBD is not psychoactive and does not deliver the highs or mental impairment that comes with THC. In addition, recent research has indicated that CBD could have a wide range of beneficial effects for health and well-being, leading to a burgeoning market for CBD products. This promising research, along with a growing popular acceptance of cannabis, has led to a resurgence in the growth of hemp — a variety of cannabis that can be rich in CBD but low in THC — and hemp-based products.

Youngevity entered this market last summer, with the launch of its Hemp FX product line, which includes products designed to soothe muscle pain and help consumers relax. This has provided a new product offering for a company that has already seen success with its hybrid model of direct selling, social selling and e-commerce.

To expand upon this opportunity, Youngevity has recently acquired Khrysos Global, a large hemp and CBD machine manufacturing company. Khrysos’s proprietary technology has been developed specifically to extract active ingredients from hemp and cannabis in order to provide the best possible yields from crops. The company also provides planning and consulting for cannabis companies looking to make use of technology in the extraction process.

“Our acquisition of Khrysos is extremely exciting on a number of levels,” said Youngevity CEO Steve Wallach. “Beyond the fact that Khrysos’ hemp-CBD extraction technology is far more efficient than most anything else on the market, we’re acquiring a turnkey business model here. Their systems are applicable to the entire industry and are immediately implementable across our own line of HempFX products as well as in offtake agreements we have through our existing business relationships. We see this as providing not only immense value to our company, but also to our investors–by selling not just the extraction systems, but also servicing and operating those systems via a rental model, they will provide us with continuous, ongoing profitability.”

Field to Finish

The acquisition is a natural move for Youngevity, not just because of the company’s interest in the hemp market but because of its established business model. This model, which the company refers to as “field to finish,” has been tested and proven through its CLR Roasters subsidiary.

CLR is invested in every stage in the coffee production process, from farming and green coffee distribution to roasting and sales of branded goods. Its vertically integrated model includes a plantation and dry-roasting facility in Nicaragua, established U.S. facilities and sales networks, and its own coffee brand. This comprehensive approach allows the company to control the entire process of coffee production from the field to the consumer’s cup, not only providing profit at every stage but ensuring the quality and the reputation of the company’s own products.

The acquisition of Khrysos and a 20 percent ownership stake in the Carolina Cannabis Company will allow Youngevity to establish a similar model in the cannabis sector. By taking ownership of the production, processing, branding and sales of CBD products, the company plans to profit from every stage in the process and ensure that its products are produced both efficiently and to the highest standards.

The acquisition brings the skills and experience of Khrysos’s technical and managerial staff in house at Youngevity, another critical advantage. The cannabis sector is still in its early days, and companies are regularly refining their processes the industry continues to evolve and grow. Having specialist knowledge about the equipment used in processing cannabis can only help the Youngevity optimize its processing systems, ensuring efficient manufacturing and a smooth supply chain.

Like any business savvy acquisition, this deal stands to benefit both the purchasing company and the one it is taking over. Youngevity’s scale and experience in reaching customers is designed to allow Khrysos’s technology to reach a wider market. Being part of a larger company provides an opportunity for Khrysos to expand, scaling up its equipment and advisory business.

“This is an exhilarating time for us,” said Dave Briskie, president and CFO of Youngevity. “This is just the first step Youngevity plans to take as we look to continue developing in the hemp-derived CBD industry. Right now, that industry is expanding so quickly that companies are struggling to keep up with demand. So acquiring the production capabilities of Khrysos, and adapting a creative model that allows us to upscale the usage of its technologies across our own properties and the properties of our partners — I feel — really stakes our claim within the industry at large.”

An Industry Expanding

Youngevity’s work represents only one part of a broader wave of expansion for the cannabis industry.

Canadian cannabis company Tilray Inc. (NASDAQ: TLRY) is among those using acquisitions to fuel growth. Tilray recently announced the pending acquisition of Natura Natural Holdings Inc., another Canadian company. Valued at C$70 million, this deal will increase Tilray’s growing space by 662,000 square feet, a significant expansion in an industry based around self-contained indoor agricultural facilities. An innovator in the cultivation, production and distribution of cannabis products, Tilray has has also established subsidiaries and affiliates in Europe, the Pacific, and Latin America, the latter through the recent establishment of Tilray Latin America SpA.

Like Youngevity, other companies with experience outside cannabis are now making moves into the sector. Anheuser-Busch Inbev (NYSE: BUD) (OTC: BUDFF), the brewers of the iconic Budweiser beer, is the latest in a series of beverage companies to make this move. The company has created a partnership with Tilray to explore the potential of cannabis and CBD-infused drinks. It’s a substantial deal, with each company planning to invest $50 million in the venture, and though it will initially be limited to the Canadian market, if the venture proves successful, the potential to grow in the Unites States is significant.

Tobacco companies are an obvious fit for the cannabis sector, which could provide them with an alternative revenue stream as health-conscious consumers turn away from tobacco. Altria, the company behind such famous brands as Marlboro and Benson & Hedges, has invested C$2.4 billion in Canadian cannabis company Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON). Canada is a good starting place for a company entering the cannabis market, thanks to the legalization of recreational cannabis in the country last October, but the investment in Cronos represents a broader opportunity. With business in Latin America, Europe, Australia and Israel, Cronos will provide Altria with access to a global cannabis market.

As well as attracting big players from the wider economy, the growth of the cannabis industry has supported the emergence of specialist companies within the sector, such as Innovative Industrial Properties Inc. (NYSE: IIPR). Founded in December 2016, Innovative Industrial Properties is a pioneering real estate investment trust that provides real estate capital for the medical cannabis industry. The illegality of cannabis at a federal level in the United States has made it hard for companies to acquire regular sources of funding, such as bank loans when buying property for cannabis production. There is therefore a substantial market for the company’s funding, and an opportunity for both sides to profit from such finance.

The growing cannabis market has produced companies specializing in many different areas. By bringing these specialties together, vertically integrated companies have a chance to increase profits and profit from this remarkable growth.

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.

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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.

420 with CNW – Four Things You May Not Know about Cannabis Jobs in the US

Your mind may immediately go to the rate at which different states are legalizing marijuana when the cannabis industry in the U.S. is mentioned. However, there is so much that many people don’t know about the job market in the U.S. cannabis industry. Here are four facts you most likely didn’t know about employment in the cannabis industry in the U.S.

Hiring Has Increased By 76 Percent

According to a study conducted by Glassdoor, the number of available jobs in the cannabis industry in the U.S. has increased by 76 percent when compared to the number of jobs that were available in 2017. Additionally, the second half of the year saw the biggest jump in the number of cannabis jobs advertised throughout the country.

Cannabis Jobs Have Attractive Salaries

Contrary to what many people may think, jobs in the cannabis industry don’t pay minimum wage. The Glassdoor research revealed that the average base salary for the jobs advertised in the cannabis industry was $58,511 a year. That figure may not be glamorous on its own, but it takes on greater significance when you realize that the median base salary across the U.S. in general is approximately 11 percent lower than the median base salary of the cannabis industry jobs advertised. In fact, slightly more than 30 percent of the cannabis industry jobs advertised paid more than $70,000 as base salary. In short, the cannabis industry may be among the best-paying industries in the country!

Many of the Top Employment Destinations Aren’t Where Recreational Cannabis is Legal

One may be tempted to think that the greatest number of jobs are to be found in locations where recreational cannabis was legalized. This is only partially true because the Glassdoor data shows that cities in California ranked highest among the top destinations for marijuana industry jobs.

However, cities in states where only medical marijuana is legal also pulled their weight as top cannabis employment destinations. For example, New York City was fourth on the list of the top 15 cannabis employment destinations while Chicago was seventh on that list.

Most of the Top Employers Are Traded Publicly

It is possible for casual observers to imagine that only Canadian cannabis companies are publicly traded. However, while the Canadian companies get the lion’s share of publicity, American marijuana companies are also traded on different stock exchanges. For example, Green Thumb Industries is traded on Nasdaq and it was the top employer in the cannabis industry. Others are MedMen Enterprises and Truelive.

While the findings of the study were only based on the jobs advertised on Glassdoor, the general idea is that the cannabis industry is growing fast since employers can only take on new hires once those employers are sure of sustainable growth to justify the cost of additional employees. The Glassdoor research is therefore good news to the marijuana industry, including Youngevity International, Inc. (NASDAQ: YGYI) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF).

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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420 with CNW – Florida Governor wants Smokable Marijuana Ban Ended

Gov. Ron DeSantis of Florida has spoken out against the medical marijuana law and threatened to step in decisively if the legislature doesn’t amend that law to permit patients to smoke medical cannabis.

The Republican Governor wants the state to have a new law that puts an end to the ban on smokable marijuana and also loosen the restrictions on the licensing conditions for treatment centers. DeSantis wants this law by mid-March.

The Governor feels that Florida voters spoke clearly enough when they approved medical marijuana, so the legislators should pass legislation that is in line with the wishes of the people. A reported 71 percent voted to legalize medical cannabis in 2016.

DeSantis says that he will drop the state’s appeals against the rulings made regarding the smokable cannabis ban as well as the legal challenge to the licensing requirements. This step will leave the courts to make a binding decision that will compel the regulators to change the existing provisions of the medical marijuana law.

However, the Governor doesn’t want to use the judicial system to effect change. Instead, he would prefer to see the necessary changes made by the legislative arm of the state, but he will have no other choice if the legislators don’t do as required within a few weeks after the new session opens on March 5.

The appeals DeSantis refers to were launched by the previous Governor (Rick Scott) after a circuit court decided that the ban on smoking medical cannabis was unconstitutional. Scott is now a Senator and DeSantis replaced him as Governor.

DeSantis spoke during a media address with John Morgan, a personal injury lawyer who sued the state over the ban on smoking medical cannabis. Morgan remarked that the no smoking issue wasn’t a joking matter and that it will be overturned one way or the other.

In response, the new Republican legislative leaders in the Senate and the House promised to work with the Governor in order to secure the necessary changes to the medical marijuana law.

It is good to see that the Governor is exerting his weight in order to help patients to have as many different ways to consume medical cannabis as is possible. Actually, the smokable cannabis may be the most affordable option for many of those patients, so keeping it off the table may impose a financial strain on people who are already struggling with serious medical conditions. The entire marijuana industry, including Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Youngevity International, Inc. (NASDAQ: YGYI), supports the position taken by Governor DeSantis.

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.

To receive instant SMS alerts, text CANNABIS to 21000

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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

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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.

Companies Explore Market Potential for Ready-to-Drink CBD Beverages

CannabisNewsWire Editorial Coverage: The market for cannabidiol (CBD) beverages alone could achieve a value of $260 million in the United States by 2022. CBD beverages form part of an even wider market for marijuana-infused drinks that is predicted to reach a value of $600 million in three years’ time.

  • U.S. market for CBD and THC beverages could reach $600 million by 2022.
  • Cannabis-infused drinks could outperform other cannabis products.
  • Non-cannabis and cannabis companies alike are joining this new market.

Savvy companies are looking to position themselves in this burgeoning market, often by partnering with companies that provide invaluable experience in the sector. Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile), an established omni-direct lifestyle company, has formed a cross-marketing agreement with a bottled spring water company, which will see the pair develop new products including a ready-to-drink CBD beverage. Tilray Inc. (NASDAQ: TLRY) is partnering with the world’s largest brewer in a $100-million joint venture to research cannabis-infused nonalcoholic drinks. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) recently received a $4 billion investment from a leading beer maker. Other companies are looking to grow in additional cannabis spaces. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently received a license from Health Canada permitting the sale of cannabis softgel capsules. And GW Pharmaceuticals (NASDAQ: GWPH) announced that its FDA-approved anti-epileptic drug is now available in the United States.

To view an infographic of this editorial, click here.

Injecting Growth into Product Portfolios

Recent reports by Canaccord Genuity indicate that cannabis and CBD-infused beverages have the potential to outperform cannabis products, reaching up to 20 percent of the market for cannabis-containing consumables by 2022. “While these trends represent a significant opportunity for U.S. cannabis companies, they have not gone unnoticed by large mainstream beverage players looking to inject growth into their product portfolio,” said Canaccord analyst Bobby Burleson, who also predicts that ready-to-drink CBD beverages will form part of the growing market for wellness drinks.

Indeed, a number of U.S and Canadian pharmaceutical, cannabis, beverage and even lifestyle companies have developed or are planning to develop CBD-infused beverages. These developments often begin with, or result in, new partnerships.

Joining Forces to Share, Build and Develop

Youngevity International Inc. (NASDAQ: YGYI) has entered an exclusive cross-marketing agreement with Icelandic Glacial™. The agreement includes plans to develop new products including CBD drinks in order to extend the market for Youngevity’s lifestyle brands and Icelandic Glacial’s market reach.

Icelandic Glacial bottled water will be added to Youngevity’s roster of health, wellness, food and beverage brands. Owned by Icelandic Water Holdings and registered in Iceland, the Icelandic Glacial brand offers water that comes from the naturally alkaline spring Ölfus Spring, has a low mineral content and is certified CarbonNeutral®.

Youngevity and Icelandic Glacial have agreed to partner for three years. Icelandic Glacial bottled water will be sold alongside Youngevity’s direct selling supplements, including 90 for Life, CBD products, pet supplements and the coffee holdings of Youngevity’s wholly owned subsidiary, CLR Roasters. During the three-year period, Youngevity will not promote any other bottled water, and Icelandic Glacial will not promote any other supplement businesses or products.

“With its rare, naturally occurring, high-pH level, low-mineral content, and unique lava rock filtering system — as well as its positioning as the world’s first CarbonNeutral bottled water company — Icelandic Glacial is perfectly positioned to serve not only customers who want a pure-tasting water that makes them feel and perform their best but also eco-friendly consumers who want to make sure their money goes to brands with a conscience,” said Steve Wallach, CEO of Youngevity International Inc.

Youngevity will use its marketing and multilevel marketing expertise to help Icelandic Glacial build its brand and reach new customers in the United States and around the globe. In return, Icelandic Water Holdings plans to introduce its customers to Youngevity’s health and nutrition products. Icelandic has a 14-year history of serving health and quality-conscious consumers while building a brand known for purity. The company has a completely sustainable operation fueled solely by geothermal and hydroelectric power. Icelandic Water is committed to reaching a target of net-zero greenhouse gas emissions.

Entering the CBD Product Market

The development of a ready-to-drink CBD beverage will be the first of the partnership’s potential new products. Future ideas may include possible special products for a range of markets based on CBD and other life-enhancing supplements.

Youngevity first entered the $7.7 billion cannabis industry with the introduction of its Hemp FX™ brand in October 2018. The new product line includes three blends of hemp-derived cannabinoid oil products: a topical cream, softgel capsules and a relaxing sleep oil. Each formula contains organically grown hemp-derived cannabinoids combined with Youngevity signature nutrients.

“Hemp-derived cannabidiol aligns with what we do very well,” said Wallach. “We’ve taken what we know about essential nutrients, along with decades of knowledge specializing in natural, plant-based nutrition and their most beneficial nutrients, and put that knowledge to work to develop high-end cannabidiol products.”

Youngevity operates a hybrid direct-sales business model combined with e-commerce and social selling to deliver a virtual main street of products and services under one entity. Its entire range includes products from eight top-selling retail categories including health/nutrition, home/family, food/beverage (including coffee), spa/beauty, fashion, essential oils and photo.

A Global Market Worth $22 Billion by 2020

Reports suggest the entire hemp-derived CBD market will hit $22 billion globally by 2022. Much of the focus on CBD-infused products and drinks is towards the healthy lifestyle consumer market. However, more big brand beverage companies are expected to enter the industry and create CBD-infused non-alcoholic beverages for a broader spectrum of consumers. CBD-focused developments and partnerships are likely to increase as industry regulation becomes clearer.

For example, medical cannabis company Tilray (NASDAQ: TLRY) announced a research partnership with Labatt Breweries parent company AB InBev to explore the potential of THC- and CBD-infused non-alcoholic beverages. This partnership will be limited to Canada, with Tilray participating through its Canadian adult-use cannabis subsidiary. The partnership calls for each company investing up to $50 million in the project.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) continues to benefit from a massive multibillion-dollar investment by Corona-beer maker Constellation Brands. The move will extend the collaboration from the development of cannabis-based beverages to co-developing products across a complete range of cannabis extracts. It also allows Canopy Growth to build scale in the more than 30 countries considering legalization of medical cannabis and establish essential infrastructure required to supply new recreational adult-use markets.

After obtaining the required licensing, Aurora Cannabis (NYSE: ACB) (TSX: ACB) has commenced shipments of cannabis softgel capsules for both the Canadian medical and adult-use markets. The company expects to start exporting to international markets early this year. Aurora intends to make its smoke-free softgel product available to all of its domestic and international target markets over time where legally possible. “Softgels are a high-volume, high-margin product for both the medical and adult-use markets that are in strong demand, and Aurora is one of few companies making these products available to patients and consumers alike,” said Aurora CEO Terry Booth.

Apart from cannabis-infused beverages, GW Pharmaceutical’s (NASDAQ: GWPH) product EPIDIOLEX is the first FDA-approved CBD oral medicine available by prescription in the United States for the treatment of seizures associated with Lennox-Gastaut syndrome or Dravet syndrome in patients two years of age or older. Its Sativex brand was the first-ever natural cannabis plant derivative to achieve market approval.

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

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420 with CNW – Three Things Likely to Affect Marijuana Stock Prices

While 2018 can be described as a huge year for marijuana in many ways, 2019 promises to yield even bigger strides for the industry. Investors who are planning to get in on the action this year should pay attention to three important factors that are likely to have an impact on the price of marijuana stocks. This article discusses those factors.

Changes to U.S. Marijuana Laws

There have been concerted efforts to get the U.S. federal government to modify its marijuana laws. So far, nothing has happened yet. However, the new House of Representatives that started its work at the start of this month seems poised to pass some legislation that will change the legal landscape for marijuana. Efforts are also ongoing in the Senate to build consensus around marijuana law reform.

Should any change be made, several companies are poised to register big wins since they will be able to attract more investors. For example, the passing of a law that recognizes the right of states to enact their own marijuana laws can ease the jitters of many potential investors in the industry. Needless to say, the rescheduling of marijuana at the federal level can cause major activity in the market for marijuana stocks.

Growth and Expansion in the Canadian Recreational Market

The Canadian recreational market is still in its infancy, but even then, the demand has overwhelmed the growers there and they are scrambling to step up their production in order to meet the huge demand.

Be that as it may, many more aspects of the market, such as concentrates and edibles, are yet to be legalized. The passing of the appropriate legislation for those other products will cause a significant stir in the market. The companies that have primed themselves to bring additional products, such as edibles, will command a huge share of the market. Savvy investors should therefore do their homework and identify the companies that have positioned themselves properly to jump in first once the door is opened.

Big Deals

In 2018, the marijuana industry saw some major deals between cannabis companies and entities outside the industry. For example, Constellation Brands concluded a big money deal with Canopy Growth. Cronos Group also received a huge investment from tobacco giant Altria. Those deals caused major price movements in the stocks of the two cannabis companies, and more deals can be expected this year.

Remember, last year ended when there were rumors that some beverage makers, such as Coca-Cola, were in talks with Canadian marijuana companies. Nothing came of those rumors, but don’t discount them just yet. Other companies are also poised to strike deals with big brand entities that are looking to get a foot into the marijuana industry. The investors who correctly identify and buy shares in companies that eventually put pen to paper will smile all the way to the bank when they ride the wave that will carry the stocks of those companies upwards as a result of the deals struck.

The marijuana industry has rightly been lauded as good for everyone (patients, the taxman, employees, investors and recreational users). Read the factors above correctly when making an investment decision and you too will join the ranks of those who are benefiting from the industry. That is what industry players like Youngevity International, Inc. (NASDAQ: YGYI) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF) want for every investor.

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420 with CNW – Cannabis Drinks Likely to Be a Big Hit in 2019

As calls for marijuana legalization sweep across the U.S., many companies are gearing up to provide yet another way to get your high, by sipping marijuana. Cannabis-infused drinks are poised to be a big thing in 2019 and beyond if the undertones surrounding the cannabis industry are to be believed.

First, industrial hemp is now legal to grow after the 2018 Farm Bill was signed into law. This means that companies will have a huge source of CBD (the non-psychoactive cannabinoid in hemp and marijuana) to use when making cannabis beverages.

Such drinks may be the first to become popular since name-brand giants like Coca-Cola have expressed an interest in making them. Those beverage giants have massive experience in building a brand from scratch and distributing it to all corners of the world cost-effectively, skills that will be crucial in getting the cannabis drinks to as many people as possible without affecting their cost.

Secondly, the medical use of marijuana is growing rapidly and more states are due to pass legislation or vote on ballot measures to legalize medical marijuana. This sector will also provide huge opportunities for cannabis drinks to take root and thrive. Already, one brewer has put a non-alcoholic cannabis beverage on the shelves of medical marijuana dispensaries. You can bet that more such drinks are in the offing, and consumers may be spoilt for choice by the end of 2019.

A number of craft beer makers have also gotten in on the action and it is now easy to find “cannabis beer” in states where recreational cannabis is legal. However, that beer just contains terpenes that give the beer flavors similar to cannabis flavors. Consequently, you aren’t likely to get a double-high (drunk on beer and high on marijuana). So, don’t be fooled when you see the image of a marijuana leaf or plant slapped on a beer can.

There’s a major reason why you are unlikely to find an alcoholic drink that contains THC. The existing laws in the country don’t allow any maker of alcohol to include THC among the ingredients used to make that alcoholic drink.

This legal provision has a firm foundation in logic, for you wouldn’t want to learn the hard way what a concoction of different intoxicating substances can do your body and mind.

If you didn’t know about that provision of the law, then you need to be first in line to get your ticket to the upcoming Cannabis Drinks Expo in San Francisco so that you can interact with different players in the cannabis industry, such as Youngevity International, Inc. (NASDAQ: YGYI) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF) as you sip on the different drinks available.

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420 with CNW – Federal Report Shows More Banks Doing Business with Cannabis Companies

A quarter-three report for 2018 released by the Treasury Department’s FinCEN (Financial Crimes Enforcement Network) shows that the number of financial institutions that are doing business with marijuana businesses has increased by 20 percent from what it was at the start of this year.

The data gathered by FinCEN shows that 111credit unions and 375 banks had cannabis businesses as clients by the end of September.

This latest report has no surprises since previous quarterly reports by the agency showed a steady increase in the number of financial institutions willing to work with cannabis businesses even if national laws regard marijuana as an illegal substance.

The Q3 report comes hot on the heels of the electoral victories scored by marijuana in the midterm polls. Michigan voters approved adult-use cannabis while voters in Utah and Missouri voted in favor of medical marijuana.

The recent general political developments also seem to favor the marijuana industry in some form, especially when one considers the fact that the Democrats have taken control of Congress. National opinion polls also show record-high support for marijuana legalization, and the politicians may think twice before ignoring this tide.

Meanwhile, the ABA (American Bankers Association) started collecting data from its members regarding the challenges that they are facing as they serve the cannabis industry. The data collected will be used to apply pressure upon Congress and the relevant regulators to institute helpful reforms in the stifling banking laws.

At the same time, a number of key players in the federal government, such as the Treasury Secretary Steven Mnuchin, have expressed a willingness to find ways for cannabis businesses to keep their cash safely instead of in bags as is the current practice.

The Federal Reserve chair has also acknowledged that the current legal regime makes it hard for financial institutions to have any certainty regarding how to work with cannabis businesses in the states where cannabis is legal. He feels that this needs to change.

States where cannabis is legal are also speaking up in different ways. For example, financial regulators in 13 states wrote to Congress asking for protections for the banks doing business with marijuana businesses.

More hope for financial institutions is coming from the consensus that seems to be forming in both Congress and Senate in favor of new legislation geared at fixing the impasse between federal and state banking laws with respect to offering services to cannabis businesses.

The big question now is whether the Republican-leaning Senate will cooperate when it matters if the Democrats in Congress pass cannabis-friendly bills. VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF), Youngevity International, Inc. (NASDAQ: YGYI) and the entire cannabis industry would be glad if these two houses agreed and removed the existing ambiguity in the financial laws affecting cannabis banking.

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420 with CNW – Could Franchising Be the Future of the Cannabis Industry?

As the Marijuana Business Conference came to an end in Las Vegas last week, a new business structure was mooted for the cannabis industry. Franchising. Some industry players are considering starting cannabis dispensary chains that would be the McDonalds and Starbucks of the cannabis industry.

The idea of franchise businesses in the cannabis industry is appealing at several levels.

First, consumers in America have been trained to consume products from trusted brands. That is why McDonalds and Starbucks get more clients than independent burger or coffee shops. Franchises in the cannabis industry would tap into the brand loyalty already instilled in buyers.

Secondly, a cannabis franchiser would save many cannabis investors from making the expensive mistakes that the pioneers in the cannabis industry have made. The cannabis industry is quite young, so the collective pool of experience in running cannabis enterprises is relatively shallow.

Creating cannabis franchises would help those who have created tried and tested cannabis industry systems to share (for a fee) their experiences and roadmap to success. The franchisees would benefit by starting off with a business model that has a proven track record of success.

However, some hurdles may still stand in the way of franchising as a business model for the cannabis industry in the U.S.

First, the cannabis industry is fragmented. Each state has its own rules regulating the cannabis market. It may therefore be hard for one business model to succeed in different jurisdictions whose laws differ widely. Maybe this could explain why the franchise would be very expensive to acquire. Extensive work needs to be done to tweak the model so that it fits within the state and local regulations governing the cannabis industry in different areas.

Secondly, many jurisdictions restrict the number of cannabis dispensaries or retail outlets that can be opened within a given area. Some local regulations even put a cap on the number of cannabis business licenses that can be granted to a single entity. Such requirements are intended to foster competition and prevent one business from controlling the cannabis market. How would cannabis franchisers navigate such regulations?

Thirdly, federal laws currently restrict cannabis from crossing state lines. This can present a major operational challenge to a franchiser since he or she would need to set up a vertically integrated business (cultivation, manufacture and sale/distribution) in each state where it intends to acquire franchisees. What is the minimum number of franchise outlets that would be needed to justify the expense of setting up that integrated infrastructure?

The problems above can certainly be thought through and solutions found, but it isn’t something that can be fixed in a short time. However, the franchise idea is a good one and shows that the cannabis industry is here to stay.

Youngevity International, Inc. (NASDAQ: YGYI) and American Premium Water Corp. (OTC: HIPH) look forward to the passing of enabling cannabis laws at the federal level since that would be one of the factors that makes it easier for cannabis entrepreneurs to create nationwide franchises.

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420 with CNW – Mexican Government Drafts Law to Legalize Marijuana

The incoming government of Andres Manuel Lopez Obrador in Mexico has drafted a bill which is likely to see medical and recreational cannabis legalized once Congress passes it.

The bill is intended to change the approach that Mexico has been taking to fight crime. The past 12 years have seen escalations in violence and poverty as the country fought to bring down the organized crime networks built around the illicit cultivation and sale of cannabis within and beyond the borders of Mexico, especially to the U.S.

Olga Sanchez, the Interior Minister-nominee, said that it was now time to bring peace to the country and end the war on drugs. She was alluding to the thousands of lives that have been lost due to drug-related crime, such as the wars between rival gangs over drug trafficking routes and cultivation areas.

The proposed bill will allow companies to cultivate and commercialize marijuana. Individuals would also be permitted to grow cannabis for their own use, as long as they didn’t harvest more than the maximum amount (480 grams) permitted each year for such privately grown plants.

Furthermore, individual growers will be required to register with the state so that they can be monitored to ensure that they aren’t growing more than is permitted for personal use. Smoking marijuana in public is also likely to be permitted.

The bill seeks to make it illegal for cannabis companies to employ children. Child labor has been the hallmark of the illegal cannabis industry in the past, so the law wants to make it clear that children should have no part in the legal cannabis industry.

Three key factors may have prompted Mexico to consider a change of policy with regards to marijuana.

First, individual states in the U.S. have legalized not just medical marijuana but recreational use as well. The U.S. has for long supported efforts to stamp out drug trafficking gangs in Mexico.

Secondly, the Supreme Court made five rulings in favor of individuals who were protesting against being restricted from consuming recreational cannabis. Those five rulings effectively made it a must for all other courts to permit anyone who wanted to consume recreational marijuana.

Third, the violence and deaths associated with the war on drugs in Mexico have reached alarming levels of late. For example, not less than 31,000 murders were recorded in the country in 2017. Violent crime had never reached such a level before.

The incoming government doesn’t think legalizing marijuana will magically end all that violence. It plans to offer amnesty and negotiate with many of the armed groups that have been having running battles with the armed forces.

Mexico will join Uruguay and Canada in case cannabis legalization takes place. The U.S. will therefore become isolated among its neighbors if it still insists that marijuana shouldn’t be legalized federally. Youngevity International, Inc. (NASDAQ: YGYI), American Premium Water Corp. (OTC: HIPH) and other companies with interests in the marijuana industry must be hoping that the U.S. federal government takes the hint and conducts marijuana reforms in the way that many of its own states have done.

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