Neptune Wellness Solutions signs collaboration agreement with International Flavors and Fragrances

Canada-based Neptune Wellness Solutions has signed a collaboration agreement with US-based International Flavors and Fragrances (IFF) to co-develop hemp-derived CBD (cannabidiol) products.

App Connect Service also serves as a party to this deal to offer related branding strategies and promotional activities.

Along with this co-development partnership, IFF will also be issued warrants by Neptune.

IFF, through this strategic product development, will leverage its intellectual property (IP) for scent, taste, and nutrition to offer essential oils and product development resources.

Neptune, on the other hand,  will leverage its cold ethanol extraction processes and formulation IP to offer full- and broad-spectrum extracts, which will help in the development, manufacture, and commercialisation of hemp-derived products for cosmetics, personal care and home care markets.

The first co-developed products are expected to be  launched in the first half of 2020 under Neptune’s Forest  Remedies brand at US retail outlets.

The marketing and sale of the products will be the responsibility of Neptune.

The first launch will include topical products across the aromatherapy segment, which is estimated to have an annual worth of $3bn.

Neptune CEO  Michael Cammarata said: “The agreement represents a significant event in the development of our global cannabis business, expanding our business model from primarily B2B to include a robust B2C business platform. IFF has an impressive track record, remarkable capabilities and global reach.

“This partnership will accelerate Neptune’s vision and growth strategy to be the leading producer of hemp extracts ingredients and finished products for the global health & wellness and Consumer Packaged Goods industries. We are also now better positioned to leverage our management’s experience building brands and relationships with key North American retailers.”

IFF divisional CEO Nicolas Mirzayantz said: “We are pleased to enter this strategic partnership and drive innovation that satisfies customers’ demands for quality, sustainability, and traceability. The hemp-derived CBD products we are developing will target consumer preference towards natural health & wellness products.”

IFF SVP global consumer fragrance Christophe de Villeplee said: “With health & wellness a key pillar of IFF’s strategy, we believe this new partnership will greatly benefit from IFF-LMR’s global expertise and leadership in naturals.”