- An estimated 64 percent of American adults report drinking coffee on a regular basis, with the majority preparing coffee at home
- Youngevity International is focused on field-to-cup distribution in the coffee market through wholly owned subsidiary CLR Roasters
- Youngevity and CLR Roasters announced on March 6 that they plan to introduce two cannabidiol-infused coffee brands in May
- CBD-infused beverages are becoming a popular new market space, with the potential for between $900 million and $4.4 billion in revenues by 2024
Youngevity International Inc. (NASDAQ: YGYI) is cultivating a market that appeals to the more than 100 million Americans who drink coffee, as well as consumers in the burgeoning cannabis industries, thanks largely to a breakthrough in its efforts to infuse coffee with consistent dosing of hemp-derived cannabidiol (CBD) for wellness lifestyle interests.
Youngevity announced plans to launch two brands of cannabidiol-infused coffees on March 6, stating that sales are expected to begin in May. The HempFX brand is expected to roll out as a direct sales product through YGYI’s large sales network early in the month, followed by full-scale distribution by the end of the month. The company’s CLR Roasters subsidiary also anticipates a late-May rollout of its Javalution brand for retail store shelf distribution, and it has already begun retail sales presentations (http://ibn.fm/uq7ih).
“We have been perplexed in delivering CBD to a cup of coffee at consistent doses, but now we have a solution that passes the scrutiny of laboratory testing and we are excited to bring these products to market. Our team at Khrysos has cracked the code on the production of water-soluble CBDs,” Youngevity President and CFO Dave Briskie stated in a news release about the project.
Khrysos Global is a Florida-based manufacturer of hemp-based CBD extraction equipment that was acquired by Youngevity in February (http://ibn.fm/3pDY4). The deal included ownership of INX Labs and its testing facilities, which Briskie hailed as “a cornerstone” of the company’s developing CBD market strategy.
Both brands will be available in four profiles – Donut Shop, Dark Roast, House Blend and French Vanilla – according to the announcement. They will all come in a single-serve format that provides 10 milligrams of CBD per cup, and, since the company’s water-soluble CBD technology is deliverable in both powders and liquids, YGYI has a wide range for potential product development.
Youngevity is an omni-direct lifestyle company that gathers a virtual Main Street of products and services under one corporate entity with a hybrid direct sales business model that values e-commerce and social selling. Wholly owned subsidiary CLR Roasters produces gourmet coffees under its own boutique brands and manufactures a variety of private labels for major national chains, as well as Youngevity’s direct sales channel. The company remains one of North America’s largest suppliers to the cruise line industry.
CLR Roasters recently began filling a five-year contract to process and ship its first containers of green coffee, primarily comprised of high grown, washed Nicaraguan conventional coffees, as well as some naturals (http://ibn.fm/NaPPF). The company is also in the process of constructing one of Central America’s largest processing mills to expand its coffee plantation and processing operation in Nicaragua (http://ibn.fm/WWNWN) and increase its participation with its Nicaraguan-based partners from 50 percent to 75 percent of profits in the green coffee distribution business. The facility, when complete, is expected to house 28,000 square feet of office space and a 160,000-square-foot warehouse capable of holding 48 million pounds of green coffee with the ability to process over 53 million pounds of green coffee on an annual basis.
An estimated 64 percent of American adults drink coffee on a regular basis, according to a 2018 study with a sample of about 3,000 respondents commissioned by the National Coffee Association (“NCA”) (http://ibn.fm/TYemO). About 79 percent of those who reported drinking coffee said that they made it at home. Coffee is just the latest beverage market entry to anticipate CBD infusion, following on the heels of alcoholic drinks and sodas. Analysts at Deloitte foresee the potential revenues for the cannabis-infused beverages market at somewhere between $900 million and $4.4 billion by 2024, depending on the percentage of the cannabis products market that infusion captures (http://ibn.fm/HOT1X).
For more information, visit the company’s website at www.YGYI.com
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