As the world becomes more accepting of medicinal cannabis, hemp has been another big winner in terms of marketability which has led nutraceuticals company Live Verdure (ASX: LV1) to the United States which is the world’s largest market for such products.
Owners of the hemp-based food brands “13 Seeds” and “8 Seeds” which originate from hemp farms in Tasmania, Live Verdure has secured FDA approval for its co-manufacturers that will be baked in the US. As a health product, this facility approval is a requirement for hemp-based products to be manufactured where specific labeling of products is also required by the FDA.
“The US nutraceutical market is the biggest in the world and the launch of our “13 Seeds” brand in the US marks a huge step towards achieving global expansion,” said Live Verdure Managing Director, Ran Vaingold.
“Consumers worldwide value high-quality products and our 100% Tasmanian hemp seed oil is top of its class.”
The 13 Seeds range of hemp products manufactured in Australia include oil capsules, seeds, protein powder and muesli. This full range will be gradually rolled out in the US through eCommerce channels where products will arrive in the US for labeling and distribution from the FDA-approved facility.
According to Live Verdure, the global nutraceutical market was valued at USD $382 billion in 2018 and is expected to double by 2027 as the world becomes increasingly more health-conscious with Australian products perceived as high quality on the global stage.
Beyond listing of products on US-based eCommerce channels, the Company intends to push social media and affiliate marketing sales for direct-to-consumer access.
Although they come from the same species of plants, hemp plants should not be confused with marijuana plants. Legally, hemp is defined as a cannabis plant that contains 0.3% or less THC, while marijuana is a cannabis plant that contains more than 0.3% THC, which is the main psychoactive compound found in cannabis.
For the Half-Year ended 31 December 2020, Live Verdure reported a 107% increase in sales revenue to $284k.