Neptune Wellness Solutions and International Flavors & Fragrances (IFF) have entered into an agreement to co-develop hemp-derived CBD products for the mass retail and health and wellness markets in the US. App Connect Service Inc., which will be assisting the firms with branding strategies and promotion, is also party to the agreement.
Under the 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.
“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,” said Michael Cammarata, CEO of Neptune, in a release. “IFF has an impressive track record, remarkable capabilities, and global reach. 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 and 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.”
The first products, under Neptune’s Forest Remedies brand, are expected to launch in the U.S. in the first half of 2020. The initial launch will include a number of topical products across the aromatherapy category, with additional category launches to follow. The total SKU count could exceed 50 SKUs.
Neptune will record revenues from product sales and in turn will pay a royalty to IFF and App Connect associated with the sales of co-developed products.
Photo: Tiara Leitzman via Unsplash