The cannabis craze has hit every beauty and wellness category (skin care, hair care, fragrance, color cosmetics, body care, tinctures, chewables—even packaging companies). And more and more ingredient makers and distributors are adding hemp-based ingredients to their portfolios to help brands and manufacturers keep up.
Now, thanks to a partnership with Neptune Wellness Solutions, IFF is the latest beauty and fragrance industry supplier to make the move into cannabis.
“IFF is a well-recognized leader and innovator in taste, scent, nutrition and ingredients and we could not be more excited at the potential of combining the resources of our two organizations to develop plant-based consumer products, including hemp-derived CBD products,” says Neptune CEO Michael Cammarata, in a media release about the partnership.
The health and wellness products company sees a clear opportunity in the US fragrance and consumer goods sectors in so far as CBD is concerned. And its this opportunity that Cammarata and his colleagues are keen to realize with the help of partners like IFF.
“The formulation and technological expertise that IFF cumulates will greatly benefit Neptune in accelerating its market penetration in the US CBD market,” says Cammarata, who came on board with Neptune Wellness Solutions this past July. This partnership aligns well with our growth strategy of expanding core customers and of supporting consumer packaged goods companies and fragrance houses' expansion into the CBD market,”
Hemp grown in the US
In May, Neptune Wellness Solutions gained a US-based hemp extract supply chain by acquiring SugarLeaf Labs. That deal gave the company not only a sizable (24,000 square foot – / 1,500,000-kilogram capacity) cold-ethanol hemp processing facility but also a working management team and established business relationships with both farmers and CPG companies.
“Now is the time to establish a state-of-the-art supply chain in the US marketplace," Jim Hamilton, then president and CEO of Neptune told the press in May. "SugarLeaf's capacity, efficient production of high-quality extracts, and strong supplier relationships, combined with our existing competencies in customer relationships and science-based formulations, creates a strong value proposition to US brands who want to offer differentiated products to consumers.”
The strategy of a personal care startup
Hamilton is no longer CEO but remains with Neptune as an advisor to the company’s Board of Directors. In early July, Michael Cammarata left his roll as CEO of Schmidt’s Naturals (which Unilever acquired at the start of 2018) and became CEO of Neptune Wellness Solutions.
John Moretz, Neptune’s chairman of the board, outlined the skills that landed Cammarata the job, saying, “Michael has extensive executive leadership experience at the forefront of consumer innovation. He has identified new trends and opportunities which led to the development of market-leading products. These critical skills should benefit our customers. Moreover, Michael possesses the right mix of operational CEO experience, leadership skills, and technology industry expertise to help elevate Neptune to the next level.”
Neptune also recently announced a deal with American Media LLC. to promote the company's consumer CBD products (beauty, personal care, home care, and nutraceuticals) in the States.
Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.