Youngevity Gains Momentum from Entry into Cannabis Market
Youngevity International is enjoying some major momentum since its entry into the cannabis market, and investors are taking notice.
Shares of the Chula Vista, Calif.-based omni-direct lifestyle company were up 35.5 percent last Friday, the day after the online news organization CannabisNewsWire (CNW) featured the company prominently in an article on the rapid adoption of cannabidiol (CBD) use in mainstream wellness products.
Since Youngevity announced the launch of three hemp-derived CBD products on Aug. 30, 2018, the company has seen its stock rise more than 220 percent.
Investors have been very interested in the prospects for cannabis-infused beverages for a while now. Considerable excitement erupted over Constellation Brands’ $4 billion investment in Canadian marijuana grower Canopy Growth in August as well as plans for the two companies to launch a variety of cannabis-infused beverages. In addition, last month reports surfaced that Coca-Cola was interested in the CBD beverage market, adding to the frenzy of attention.
Just last week, Youngevity announced that it was expanding its HempFX™ line with the launch of two new hemp-based CBD tablets to be used with its proprietary portable water bottle system.
From 2012 to 2016, Youngevity more than doubled revenues, from $75 million in 2012 to $166 million in 2017. This year, the company achieved an 8.7 percent revenue increase in Q2 YTD 2018 over Q2 YTD 2017 and a 9.6 percent increase in gross profits over the same period. The expansion into CBD products appears likely to boost revenues even further, potentially placing the company at the forefront of the CBD boom.
