Naturally Splendid (TSXV:NSP) announced that it has entered into a Letter of Intent (LOI) with The Cocos Pure Beverage Corp, to co-develop a unique product line of coconut based retail products infused with HempOmega.
As quoted in the press release:
Naturally Splendid and Cocos Pure will equally share the cost of product development, including research and development, brand and market development as well as distribution costs. The companies will also equally split net revenues. A definitive Agreement is expected within ninety days.
Cocos Pure is a privately held, Vancouver based, company with an established retail line of organic and conventional coconut products, both food and beverage (www.cocospure.com), that are sold in seven countries. The products include coconut water in several flavours, as well as coconut oils and coconut foods.
The products will be jointly developed with the assistance of POS Biosciences at their facility located on the grounds of The University of Saskatchewan. POS Bio-Sciences offers unparalleled expertise and service in bioprocessing applied research from bench-top to commercialization scale focusing on Process Development, Analytical Services, and Custom Processing. POS specializes in extraction, fractionation, modification and purification of bio-based materials. All POS Bio-Sciences processes are cGMP-compliant and fully supported by quality assurance, commitment to regulatory compliance, and certification to international standards.
The products will utilize Naturally Splendid’s proprietary HempOmega™ which is a homogenous, water-soluble powder made from omega rich oil extracted from 100% non-GMO Canadian hemp seeds. Naturally Splendid’s proprietary microencapsulation process transforms omega-rich hemp oil into HempOmega®, that can be added directly into new or existing foods, beverages, cosmetics and nutraceuticals. Coconuts are rich in antioxidants, electrolytes, vitamins and minerals and have been used in many cultures as a dietary staple. With outstanding health benefits such as muscle performance, weight loss, kidney cleansing, stress reduction, heart health, diabetic control, and hypo allergenic the drink has tremendous potential across a wide range of demographics.
Coconut water is in a growth phase and has begun to penetrate the sports beverage market. The trend exists due to its nutritional benefits and natural hydrating qualities. The global sports beverage market, is witnessing a phenomenal growth mainly due to rising health and fitness consciousness across the general population. Earlier, athletes and body builders were the major consumers within the sports beverage market. That trend has been shifted to the general population, which in turn affects the demand dynamics of the sports beverage market to a great extent. The sports beverage market is expected to grow at a CAGR of 17% and hit a global value of USD 48 billion in 2015.
Naturally Splendid CEO, Craig Goodwin, stated:
We are pleased to continue to find markets for HempOmega™. Developing new products with Cocos Pure further demonstrates the vast market opportunity for HempOmega™. Cocos Pure’s experience and expertise in the coconut beverage and food industries will be instrumental in bringing these new infused coconut products and beverages to market.