Updated: Dec 17, 2019
THC Living has seen many mergers and acquisitions over the past few years with limited collaborative agreements in place until now. International Flavors & Fragrances (NYSE: IFF) and Neptune Wellness Solutions (TSX: NEPT) will be developing hemp-derived cannabidiol products for the health, wellness, and retail markets.
The most notable part of the agreement, International Flavors will be providing product development and essential oils resources through leveraging its intellectual property for scent, taste, and nutrition. Neptune Wellness will be providing high-quality spectrum extracts to commercialize, manufacture and develop hemp-derived products with essential oils for the home-care and personal care markets, through their exclusive cold ethanol-extraction processes and IP formulations processes.
The first wave of products will be launched through Neptune’s Forest Remedies brand through the first half of 2020 in U.S. retailers including various topical products. Neptune will be responsible for the marketing and sales of the products. Neptune will be paying royalty fees to International Flavors for the sales of the co-developed products.
International Flavors and Neptune Wellness partnership will drive customer’s demands for sustainability, quality, and traceability through purification and formulations of health and wellness products. Neptune Wellness Solutions is licensed by Health Canada for processing cannabis at its facility located in Sherbrooke, Quebec.
Globally the market is expanding when it comes to fragrances and flavors which is increasing demand for a variety of consumer products containing flavors and fragrances. It is expected the market will grow by 4-5% by 2021 backed by emerging markets.
International Flavors has been making acquisitions over the past few years, which expands its offerings and profitability.
Share Price Growth
In the last quarter, International Flavors has gained 11% compared to the industry’s decline of 6%.
Looking for Sky-Rocketing Cannabis and Hemp Companies
THC Living will be releasing a Special Finance Report on the booming investment projects in the legal cannabis and hemp industries. The excitement of new legislation, the cannabis/hemp industry is expected to sky-rocket from an already robust $12 billion to $40 billion in 2024. Investors that start early are going to make a killing, but you have to be ready to act and know where to invest.