The best performing first-day IPO in decades took place last May, and it marked a major shift in the public’s attitude towards a healthier lifestyle.
There is no doubting the plant-based nutrition trend.
When phenom ‘Beyond Meat (NASDAQ: BYND) launched to over $230 per share after IPOing at $25 per share, it was a clear indication of the major consumer shift taking place right now. The share price has since pulled back, but still maintains a solid 300% gain from initial IPO levels.
Right in step, multi-billion dollar food companies flooded onto the scene, each announcing their own plans to offer plant-based alternatives in the near-term. Even well-established companies have since taken steps to get in on this fast-growing market segment, including giants like Tyson Foods, Nestle, IKEA, McDonald’s and Burger King. And it’s not surprising when you consider the numbers.
Today, approximately 1/3 of Americans identify themselves as flexitarian, a fairly new designation for individuals who eat meat but choose meatless alternatives on a regular basis for health reasons.
Over $2 billion has been invested in plant-based alternatives over the past decade… and more than half of that occurred between 2017 and 2018 alone. Globally, the plant-based meat market is estimated at $12.1 billion. At the projected compound annual growth rate of 15%, that number is expected to rocket to $27.9 billion by 2025.
If plant-based alternatives capture even a small percentage of the $1.4 trillion global meat market, it could mean massive gains for the companies positioning themselves at the forefront of this space.
For investors seeking entry to this growing sector, Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) presents the potential for exceptional returns.
The Right Products at the Right Time
As the market shifts to plant-based ingredients, Naturally Splendid continues to expand its product line to meet the trend.
Since Naturally Splendid’s initial foray into hemp nutritional products over twelve years ago, they have established a thriving business, developing and manufacturing mainstream and niche plant-based, nutritional and sports-related products in their modern manufacturing facility.
Hemp is a key ingredient in many of the company’s formulations. Widely recognized as one of the most nutritionally rich plants on earth, hemp contains the most digestible protein of all plants and according to the World Health Organization, the perfect ratio of Omega 3 and Omega 6 for optimum human health…all this and environmentally friendly as well!
Consumers are demanding more sustainable and ethically produced foods providing even more reason for investors to look at this opportunity.
However, recognizing the growth in plant-based nutrition overall, they’ve expanded their offerings, resulting in the international distribution of a large variety of commercially successful products.
Naturally Splendid differentiates itself from others in the industry by offering custom formulation services that include R&D, private label, and contract manufacturing in their recently commissioned Safe Quality Food Level 2 (SQF2) Facility.
Commanding several of the highest-grade food standards certifications in the industry, such as Safe Quality Food Level 2 (SQF2), Naturally Splendid can offer assurances that the products they product meet the highest international standards for food safety and quality.
ALREADY Penetrating The $12 Billion Sports Nutrition Market
Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) currently manufactures a wide variety of nutritional bars and bites for their own in-house brands such as Natera™ Sport, Natera Hemp Foods, Elevate Me, Woods Wild Bar and Chii Hemp Foods, as well as contract manufacturing bars and bites for a wide range of clients from SMEs, to internationally recognized brands.
Recently, Canopy Growth Corporation, Canada’s largest MJ company, purchased 72% of the sports nutrition company BioSteel. As announced on October 2, 2019, Canopy Growth Corp. (CGC) acquired a majority stake in BioSteel Sports Nutrition Inc…and its share price is up over 30% since that announcement.
The deal, which sees Canopy acquiring a 72 percent stake in the Toronto-based sports drink maker, represents the company’s bet that aside from being a major cannabis producer, it can also be a big player in the US$50-billion global sports nutrition market.
Naturally Splendid continues to ‘hit above their weight’ in the area of sports nutrition and we believe that it’s only a matter of time until investors take note.
Natera Sport Keto-Friendly Nutritional Bars
Naturally Splendid has successfully launched it’s Natera Sport Line of products, including KEY-TO-LIFE bars sold in over 2,000 retail stores across Canada.
This fast-selling recently launched product was developed, manufactured and marketed from within the resources of Naturally Splendid. The Company has several new product launches timed for the first quarter of 2020 with the launch expected at Canada’s largest west coast health and nutrition tradeshow, CHFA Expo West.
Natera Sport Bites…used by top golfers on the PGA Tour!
As well as the success of the KEY-TO-LIFE bars, Naturally Splendid’s novel Natera Sport Bites formulated by NSE Advisor, Formulator and ‘Practitioner for players on the PGA Tour’, Dr. Stuart Love is getting some mainstream press, most notably in the widely read Golf Magazine.
A read through Golf Magazine’s August edition finds Natera Sport Bites in their monthly feature, ‘What’s In My Bag’, featuring Tony Fineau and again in October’s edition of Golf Magazine, this time featuring Kevin Kisner in the same, ‘What’s In My Bag’ monthly feature. This product is getting the attention that can result in significant distribution opportunities.
Given their positioning in so many key markets, Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) is ideally poised for a breakout in the near-term.
Boasting over 12 years’ worth of experience in retail line development, Naturally Splendid has well-established, trusted relationships in the food industry, including a network of food brokers in Canada and abroad. They also have developed distribution with UNFI, Canada’s largest natural products distributor.
And their efforts are not going without notice. By Q2 2019, Naturally Splendid had already equaled their entire 2018 sales… and they look to be on their way to bigger and better things, as evidenced in a November 13, 2019 news release:
Naturally Splendid is pleased to announce it has begun manufacturing plant-based energy bites for an international, plant-based sports nutrition and healthy lifestyle company.
This internationally reaching company has sales in excess of $100,000,000 CDN annually in over 15,000 retail stores, as well as having a significant e-commerce platform. In operation for over 16 years, this company has been a groundbreaker in the plant-based natural health and performance products industry and is a high-growth, natural health food and supplement company on Profit Magazine’s Profit 100 list of fastest-growing companies the last five years.
Could Naturally Splendid be a takeover target candidate?
Novel and Proprietary Ingredients…
Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) looks to have developed two significant differentiating products that could really set it apart – a hemp-based microencapsulated oil that may be used as an alternative to fish oil, called HempOmega™, and an 85% Hemp Protein Isolate.
In case you’re wondering how important that is, fish oil sales are a $2 billion business and plant-based protein sales are soaring. Naturally Splendid seems ready to invade this space with plant-based alternatives.
More now than ever, global markets are ready for healthy hemp-based products. Hemp has applications to the food, beverage, nutraceutical, cosmetic, pet, animal feed, and even for fibre and bio-fuel. Growth categories for hemp products include cereals, sports nutrition, and snacks, says Innova Market Insights,
“Interest in plant-based eating is clearly reflected in developments in the meat substitutes market, where global sales are set to grow to US$4.2bn by 2022”.
Better Products Create Better Opportunities…
As global plant-based sales rise, Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) is positioned to leverage the nutritional powerhouse, hemp.
Naturally Splendid may be low-profile, but it has already established and owns multiple high-quality, consumer brands; and has established a bio-science presence as well. They boast…
- Proprietary technologies for the extraction and formulation of hemp-based omegas and proteins which separate it from most other hemp companies.
- SQF2 manufacturing facility leveraging novel ingredients in securing new Contract Manufacturing Clients…as well as utilized in developing their own successful retail lines.
- Proprietary products give them a leading edge in multiple markets —HempOmega™ may be used as an alternative to fish oil and 85% Hemp Protein Isolate, provides more protein nutrition than most meat sources.
HempOmega™ – Naturally Splendid’s Micro-encapsulated Hemp Oil
Omega 3 supplements from fish are a leading category within the nutraceutical industry. Grand View Research analysts expect that by 2025 the omega 3 supplements market will hit $57.07 billion of significant growth in product applications. The fish oil supplement market alone is projected to reach $2.63 Billion by 2020, and plant-based omegas such as HempOmega™ can provide safe, sustainable alternatives to declining fish populations.
Outside of supplements, the applications for omega 3s are numerous and of great consequence to overall health. Omega products are gaining traction in the functional food market in categories that include dairy, pizza dough, pasta, baked goods, beverages, and even pet food… and a plant-based ingredient for omega fortification has much broader appeal than fish oils. HempOmega™ has applications in all these categories.
85% Hemp Protein Isolate
Plant-based proteins are amongst the fastest-growing consumer sectors, seeing companies such as Cargill (the largest privately-owned agricultural company in the world) sell off all its animal protein divisions to focus more on plant-based proteins. As a complete protein, hemp contains all the essential amino acids required for the human body.
The 85% Hemp Protein Isolate has a wide range of applications in the plant-based protein market providing sustainable, ethical alternatives to animal proteins…one of the fastest-growing categories in retail food.
Hemp’s protein content is on par with or higher than most fish and meats and has more protein than all other plant sources including chia and flax and the Company’s 85% Hemp Protein Isolate is the highest concentration we have seen compared to other hemp protein concentrates.
The company’s retail product lines span a number of market segments including functional foods, nutraceuticals, cosmeceuticals, and pet care. They even have technology applicable to the animal feed markets as evidenced in a poultry feed study involving HempOmega™ identifying superior omega levels in the eggs of chickens fed HempOmega™…” omega eggs” sell for significantly higher than “regular” eggs in grocery stores.
Success Breeds Success…
Through the application of advanced science and technology, Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP)has built an award-winning portfolio of high-quality hemp and plant-based products. Already distributed in North America and Australia, the Company has established relationships that look to be obvious exporting opportunities such as Asia and Europe.
In fact, the Company has already made headway in these markets and looks to be poised to optimize these relationships.
Some History…and Perspective of Naturally Splendid
Naturally Splendid has traded as high as $1.04 per share…and is currently trading at what we believe to be an undervalued $0.075 a share.
The Company is built upon a strong corporate structure with the Company’s first CEO, Mr. J. Craig Goodwin back in the CEO seat as of August 27, 2019, and Company Co-Founder Mr. Bryan Carson taking the Vice President reigns.
In 2015, Naturally Splendid reached sales of almost $7M under the leadership of Mr. Goodwin and Mr. Carson. However, in 2016 and again in 2017 / 2018, the Company engaged ‘outside CEOs’ to lead the company. Co-Founders, Goodwin and Carson, remained with the Company in key positions and were the drivers behind much of the progress in relation to product development, increased manufacturing certifications and capacity, as well as establishing significant distribution channels.
After two disappointing years of declining sales, the Co-Founders are back driving the Company and if the recent news announcement is indicative of their presence…then there are brighter days ahead for this early mover in the hemp industry.
But There’s Even More…
Changing MJ & Hemp Regulations in 2019 Enhance Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) opportunities as edibles begin to hit the market…
While the North American CBD opportunity continues to move two steps forward and one step backward, companies that have bet ‘all their chips’ on a CBD play are at risk as the FDA continues to struggle with regulating CBD. However, even with recent comments from the FDA, consumers are looking for safe CBD products.
Naturally Splendid balances this opportunity by building a plant-based following, many who are likely to embrace CBD as the attributes of this compound prove out over time.
Naturally Splendid, while awaiting the necessary licensing, is getting positioned as Canada prepares to capitalize on the new MJ and hemp regulations that took effect in 2019. In particular, revised hemp regulations that allow for the extraction of CBD (Cannabidiol) from hemp.
Naturally Splendid’s technologies, facilities, and distribution channels will allow for the rapid development of CBD production and CBD fortified products as licensing is secured.
CBD Edibles Are Becoming a Hot Commodity Amongst Cannabis Investors
Functional Ingredient sales growth of CBD through US retail outlets (excluding Whole Foods) reached $185.1M in the 52 week period ending August 11, more than triple the $47.2 million in the previous 52-week period, according to SPINS data. Roughly 60% of CBD products sold in the US natural channel in 2018 were
in the form of alcohol-free tinctures, followed by capsules and soft gels.
“Sales of CBD as a supplement have just exceeded turmeric in the last six weeks or so,” said Miedema, who noted the parallel between turmeric’s draw as an adaptogenic ingredient when it first gained traction in the market.
CBD products have gone mainstream. In fact, as CBD products make their way onto the shelves of Vitamin Shoppe, Kroger, CVS, and Walgreens, analysts believe the trend could be a significant catalyst. Along the way, consumer spending on cannabis-based food and drink products could reach $4.1 billion from just $1 billion in 2017, according to analysts at Arcview Market Research.
Even better, we’re beginning to see signs of consolidation in this industry.
For example, Tilray Inc. just acquired Smith & Sinclair to create a line of edibles and will distribute the product throughout North America. That’s opening a wide range of opportunities for companies including Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP).
A Global Market Out There for Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP)
- Put all these products and capabilities together, and Naturally Splendid has several addressable markets for its future success, including:
- The global functional foods market size is projected to reach USD 275.77 billion by 2025. It is anticipated to expand at a CAGR of 7.9% during the forecast period.
- Global Omega 3 Fatty Acids Market Size was USD 1.26 billion in 2017 and is estimated to reach USD 2.07 billion by 2025, driven by the growing health awareness coupled with improving the standard of living in several regions. Asia-Pacific to witness a rate of 9.1% from 2018 to 2025.
- The nutraceuticals market is predicted to record a revenue of USD 671.30 billion by 2024, registering a CAGR of 7.5% during the forecast period (2019 – 2024).
- The global cosmetic products market was valued at USD 532.43 billion in 2017 and is expected to reach a market value of USD 805.61 billion by 2023, registering a CAGR of 7.14% during 2018-2023.
- The global feed additives market (henceforth, referred to as the market studied) was valued at USD 31.74 billion in 2018, and it is expected to register a CAGR of 4.6% during the forecast period (2019-2024).
- The global hemp-based market for food and beverages is expected to grow by a compound annual growth rate of 24% through 2022, according to forecasts from market research provider Tecnavio. Hemp, US$1 billion in 2018.
- Consumable product lines include: NATERA SPORT – plant-based sports nutrition, NATERA® Hemp Foods – retail hemp food line, Naturally Splendid Hemp Processing – bulk hemp sales, CHII™ hemp oil, seeds, protein powder, and flour, Chii™ Skincare and Personal Care – hemp-infused products, Elevate Me™ – Protein bars and functional foods, PawsitiveFx™ – hemp-based pet products and NATERA® CBD (Cannabidiol) – CBD infused products
We believe that Naturally Splendid Enterprises (OTC: NSPDF / TSX: NSP) has done all ‘the heavy lifting’ and has positioned itself well as the next big mover.
Take the next step now. Go to the Naturally Splendid website and sign up for their email news releases so you can be among the first to hear of company developments.
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The best performing first-day IPO in decades took place last May, and it marked