- Youngevity International is a multi-faceted lifestyle company that is rapidly increasing its hemp-based cannabidiol oil production for varied industries
- Youngevity subsidiary Khrysos Global has inked a contract to provide 50 percent of its capacity for 99 percent pure cannabidiol oil, with additional contracts anticipated
- Cannabidiol-infused beverages are gaining traction in the emerging cannabis industry, with anticipated revenue potential between $900 million and $4.4 billion by 2024
- Youngevity’s HempFX and CLR Roasters brands will begin selling cannabidiol-infused coffees next month, and the company is working on another cannabidiol drink under an agreement with Icelandic Glacial bottled water
Multi-faceted and flexibly-oriented lifestyle company Youngevity International Inc. (NASDAQ: YGYI) is expanding its operations in the cannabis industry following the announcement that its subsidiary, Khrysos Global, has entered a contract to produce 99 percent pure cannabidiol oil from hemp that’s free of the psychedelic tetrahydrocannabinol (THC) found in cannabis’ marijuana strains.
The one-year supply and processing agreement is expected to begin with shipments this month and continue in equal amounts through March 2020, amounting to what Khrysos President Dwayne Dundore described as 50 percent of the company’s production capacity utilizing its supercritical CO2 technology (http://nnw.fm/CktQ0). Contracts for the remainder of the company’s production capacity are expected to be executed during “the next few months,” he added.
“We are excited to reach the revenue stage for the end to end processing component of our business model,” Dundore stated in the news release. “Due to customer demand we are implementing our plan of increasing our end to end processing capabilities by 10 times in Q3 of this year providing estimated annual revenue potential in excess of $220 million at current market prices.”
Youngevity acquired Khrysos Global in February (http://nnw.fm/J3W0f). Khrysos is a Florida-based manufacturer of hemp-based CBD extraction equipment and the operator of INX Labs, which provides environmental analysis, fuel and feedstock analysis and mined rare earth analysis (http://nnw.fm/6cB1N).
The Khrysos acquisition accelerated YGYI’s activity in the hemp-based CBD industry, providing systems that could be immediately implemented in YGYI’s line of HempFX products and in offtake agreements that the company has through its existing business relationships, according to CEO and Chairman Steve Wallach.
“We see this as providing not only immense value to our company, but also to our investors since we’ll be selling not just the extraction systems, but also generating income servicing and operating these systems via a rental model,” Wallach added.
Youngevity’s virtual Main Street stable of products and services allows the direct marketer to appeal to consumers in the top eight revenued retail categories, including health and nutrition, home and family, food and beverage (including coffee), spa and beauty, fashion, essential oils, photo and innovative services. The company’s hybrid direct sales business model values e-commerce and social selling and is particularly serviceable to the cruise line industry.
In January, the company announced an exclusive agreement with Icelandic Glacial bottled water that’s anticipated to lead to the development of a ready-to-drink CBD product. In March, the company added plans to launch CBD-infused coffees, which are expected to begin with rollout under Youngevity’s HempFX brand early next month, followed by a second product under its CLR Roasters brand later in the month.
An estimated 64 percent of American adults drink coffee on a regular basis, according to a 2018 study commissioned by the National Coffee Association (NCA) (http://nnw.fm/WoQ7x), and analysts at Deloitte foresee the potential revenues for the overarching cannabis-infused beverages market at somewhere between $900 million and $4.4 billion by 2024 (http://nnw.fm/3hYFh), highlighting the expanding potential for the company.
For more information, visit the company’s website at www.Youngevity.com
NOTE TO INVESTORS: The latest news and updates relating to YGYI are available in the company’s newsroom at http://nnw.fm/YGYI
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