Neptune Wellness Solutions Inc NEPTF

Consumer Defensive Household & Personal Products

Neptune Wellness Solutions Inc. is a consumer-packaged goods company that is primarily focused on health and wellness products. The Company focuses on developing a portfolio of consumer products that align with the market trends for natural, sustainable, plant-based, and purpose-driven lifestyle brands. Its products are available in more than 29,000 retail locations and include organic food and beverage brands, such as Sprout Organics, Nosh, and Nurturme, as well as nutraceuticals brands like Biodroga and Forest Remedies. Its main brand units are nutraceuticals and organic foods and beverages. The Company sells its nutraceutical products mainly in bulk soft gels or liquids to multiple distributors and customers, who commercialize these products under their private label. The Company, through its Sprout subsidiary, sells its organic foods and beverages products to mass retailers, grocery stores and other retail outlets, as well as online through e-commerce sites and its own Website.

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Neptune Wellness Solutions Inc > About Sprout Acquisition

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Post by TechOneon Feb 17, 2021 2:00am

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Post# 32581922

About Sprout Acquisition

Yes. So I think we're already starting to see and we've been working on a plan that maximizes the synergies before the -- between both entities. The couple of parts of the synergies. One is on a cost basis. We're looking to -- as a portfolio of three brands to synergize all three of their supply chains to improve gross profit margin, to give us an extremely good positioning on that. With the distribution, we've had success internationally expanding distribution for them that will start taking place in upcoming quarters with onboarding additional international customers.
And then domestically, they will be rolling out chain-wide to target over 1200 stores eight SKUs in upcoming months. So we've seen domestic success in distribution. We're adding international distribution. We have a great team in our health and wellness division as we've had to build our global supply chain through the COVID times. That comes over from Walmart. So we've been definitely thoroughly looking at how the opportunities are. They do have a great reputation and been strong in the domestic distribution. So adding Target was definitely something that we're really excited about.

And then internationally expanding the footprint overseas, the products will be shown at the Dubai Food Show coming up as well. And we are working actively on completing the registrations in over 20 countries. So that's something that you'll see in international growth from.
You'll see domestic growth in the US distribution. And also within Canadian, we're onboarding a Canadian retailer grocery store as well. So you're going to see growth simultaneously domestically and internationally, and also cost synergies for the three brand portfolios. And we're really good that Morgan Stanley and the management stayed on, to support the growth and been working with us on the plan and we're really excited to bring it to fruition and really starts our footprint in the plant-based foods area and we expect a lot of product innovations. It will also be very supportive to our nutraceutical business. As I talked about a little bit, we're looking for synergies on vitamins and expansions. And is a heavy interest in kid’s vitamins and other products. So you expect to see line synergies between our nutraceutical side on the product development area as well.