Youngevity (YGYI) investors got a bit of a nice treat to start off 2019. While many watchers of the stock have been eagerly awaiting the company to get into the hemp growing business by purchasing a farm and processing operation, the company has been busy expanding its deal structure on consumer products. This past week Youngevity announced that it has entered an exclusive deal with Icelandic Water Holdings.
At first blush this may not seem very compelling, but if you take the time to scratch the surface, you will notice something. Icelandic Glacial Water is distributed in the United States by Anheuser-Busch InBev (BUD). In fact, Anheuser-Busch InBev owns 20% of Icelandic Water Holdings. Let that sink in a moment. If you have been following the CBD space for any length of time, you will note that beer companies have been pretty keen on getting involved in some way. This deal shows that Youngevity has what it takes to cut a deal with some pretty impressive players.
The deal includes not only CBD products but also supplement infused water as well. Youngevity will be exclusive to Icelandic and not promote any other water products, whilst Icelandic will be exclusive and promote no other supplement products. This is very big. No company cuts off its ability to promote something else unless it is very sure that the product it is being exclusive to is very good.
Over the next three years, the companies will jointly develop products in four key areas:
Earlier in the article, I mentioned that you had to look beyond the headline and think a bit more deeply. The fourth category of development relates to coffee products. As long time readers know, Youngevity has a well established field-to-finish coffee business established. In fact, the company is already fulfilling a massive $250 million green coffee contract. The other segment where integration of CBD is hot is CBD infused coffee products. Youngevity, which entered the CBD space only last year, is already making very big moves.