Youngevity International, Inc. (NASDAQ: YGYI) Increases Diversification of Product Portfolio with Expansion of Cannabidiol Oil Brand

October 18, 2018 11:12:16
  • As cannabidiol oil market explodes, Youngevity expands HempFX product line
  • Product diversification reduces revenue volatility
  • Direct seller with its own 1,000-acre coffee plantation
  • Clinched $250 million five-year coffee supply contract

If diversification is the road to portfolio efficiency, then the expansion of its HempFX product line should take Youngevity International, Inc. (NASDAQ: YGYI) closer to optimizing its risk-return position. Already well diversified with its eggs in many baskets, Youngevity is a leading omni-direct lifestyle company offering products in the top eight selling retail categories of health and nutrition, home and family, food and beverage (including coffee), spa and beauty, fashion, essential oils, photo and innovative services. Expanding its cannabidiol oil product line takes the company further along the road of revenue stability and risk reduction. With the new products, Youngevity is also doubling down on its mission to promote healthy lifestyles. The therapeutic benefits of cannabidiol oil are being increasingly recognized.

Earlier this year, Youngevity announced its intention to enter the cannabidiol oil market with a proprietary line of hemp-derived products. The timing was auspicious, for the cannabidiol oil market is expanding rapidly. Indeed, the Hemp Business Journal projects that consumer sales of cannabidiol products will reach $2.1 billion by 2020, with $450 million of that coming from hemp-based sources. That would represent a 700 percent increase from 2016. Demand for cannabidiol oil has exploded as its uses have expanded. Cannabidiol oil can now be found in cosmetics, medications, food and health supplements (http://nnw.fm/A1GjM).

Youngevity introduced the HempFX product line at its August 2018 convention in San Diego, California. The three debut products were labeled with reassuring names – Soothe, Relax and Uplift – which emphasized their curative properties. Soothe supports a healthy immune system and soothes sore, tired and achy muscles and joints. It contains Youngevity’s proprietary hemp-derived cannabinoid oil, as well as a variety of herbs, minerals and a powerful antioxidant – glutathione. Relax has the same cannabinoid oil base found in Soothe, to which is added a number of calming botanicals, such as chamomile, lavender, valerian and melatonin, that naturally induce slumber. Uplift combines Youngevity’s exclusive hemp-derived cannabinoid oil with St. John’s Wort and a specialized set of natural terpenes (cannabinoid enhancers).

The HempFX additions are ‘HempFX Hydration – Sleep’ and ‘HempFX Hydration – Pure’, both of which come in tablet form. They are meant to be used with Youngevity’s Y-DR8+ proprietary, portable water bottle system, which produces great tasting water and reduces chemicals found in tap water. The cannabidiol tablets are housed in the system and dissolve as the water flows over them. The Y-DR8 filter features (ACC) activated carbon cloth and is portable to fit today’s “On the go lifestyle.”

‘HempFX Hydration – Sleep’ combines melatonin with organic, full spectrum, hemp-derived cannabidiol oil and is formulated to improve sleep patterns that contribute to a restful night. ‘HempFX Hydration – Pure’ is added to water and quickly dissolves as it is consumed. It contains 25mg of organic, hemp-derived cannabidiol oil per tablet and is designed to provide a daily dose of cannabidiol to anyone who wants a full-spectrum cannabinoid product. Both ‘HempFX Hydration – Sleep’ and ‘HempFX Hydration – Pure’ are expected to be available in November of this year.

The cannabidiol oil product portfolio takes the number of SKUs available from Youngevity to well over 2,000. Leveraging its direct-selling network, the company now offers products in a wide range of market segments, including apparel and accessories, business lending, health and wellness, home and garden, lifestyle products, nutritional supplements, skincare and cosmetics, packaged foods, pet care, telecare health services, weight management and gourmet coffee. Additionally, the company owns a 1,000-acre coffee plantation in Matagalpa, Nicaragua.

Through wholly owned subsidiary CLR Roasters, Youngevity has entered into a five-year contract for the sale and processing of over 41 million pounds of green (un-roasted) coffee on an annual basis (http://nnw.fm/T4hg2). Based on current coffee prices and coffee futures, this contract should generate revenues in excess of $50 million per year for each year of the five-year deal. The purchaser of the coffee is a major coffee importer and exporter that has, for over 70 years, been supplying some of the largest coffee brands in the industry. Revenue for this contract covers the period from 2019 through 2023, with first shipments to begin in January 2019.

For more information, visit the company’s website at www.YGYI.com

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