TAGS: Natural/ Organic
Neptune Wellness Solutions Inc. has announced that that it has entered into a collaboration agreement with IFF to codevelop hemp-derived CBD products for the mass retail and health and wellness markets.
App Connect Service, Inc. is also a party to the agreement to provide related branding strategies and promotional activities. In conjunction with the codevelopment partnership, Neptune will issue to warrants to IFF.
Hemp-derived Products for Cosmetics
Under this strategic product development partnership, IFF will leverage its intellectual property for taste, scent and nutrition to provide essential oils and product development resources. Neptune will leverage its proprietary cold ethanol extraction processes and formulation IP to deliver high-quality, full and broad-spectrum extracts for the development, manufacture and commercialization of hemp-derived products, infused with essential oils, for the cosmetics, personal care and home cleaning markets.
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The agreement represents a significant event in the development of our global cannabis business, expanding our business model from primarily B2B to include a robust B2C business platform. IFF has an impressive track record, remarkable capabilities and global reach,” stated Michael Cammarata, CEO of Neptune.
First Products to be Launched in 2020
The first products are expected to launch under Neptune’s Forest Remedies brand at U.S. retailers in the first half of calendar 2020. The Initial launch will include a variety of topical products across the aromatherapy category, a market estimated at approximately USD 3 billion annually.
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We are pleased to enter this strategic partnership and drive innovation that satisfies customers’ demands for quality, sustainability and traceability. The hemp-derived CBD products we are developing will target consumer preference towards natural health & wellness products,” said Nicolas Mirzayantz, Divisional CEO, Scent at IFF.
Neptune will be responsible for the marketing and sale of the products. Neptune will record revenues from product sales and in turn will pay a royalty to each of IFF and App Connect associated with the sales of codeveloped products.
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This partnership will accelerate Neptune’s vision and growth strategy to be the leading producer of hemp extracts ingredients and finished products for the global health & wellness and Consumer Packaged Goods industries. We are also now better positioned to leverage our management’s experience building brands and relationships with key North American retailers,” continued Cammarata.
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With health & wellness a key pillar of IFF’s strategy, we believe this new partnership will greatly benefit from IFF-LMR’s global expertise and leadership in naturals,” commented Christophe de Villeplee, IFF’s SVP global consumer fragrance.
Source: Neptune