CBD Company - Isodiol
| Ranking and Market Share | #19 - 0.7% of overall market. 2018 sales: $4.5 million |
| Product Portfolio | Tinctures (oil), topicals and beauty/skincare products, patches, capsules, edibles (gummies) & drinks (sleep and energy shots, water, coffee, beverage enhancers), vape juice, drops, and just entering pet |
| Distribution Channels | Online, bulk sales, gyms |
| Positioning | Primarily positioned to sell bulk isolates and oils B2B in the U.S. and UK, moving into more direct finished product sales with pet and drink lines |
Strengths
| Competitive Advantages | Diverse portfolio of brands. Solid revenue stream established with bulk products. Canada-based, can access funding in immediate term for U.S. operations, residency may be advantageous when it comes to Canadian investment |
| Making the most money on | Bulk product sales |
Opportunities
| Beneficial trends | Interest in CBD-infused beverages and sports medicine related products - Isodiol is diversifying and expanding its IsoBev and IsoSport lines |
| Additional growth opportunities | Canada-based company, well-positioned to expand there following cannabis legalization in late 2018. Currently working to acquire CN Pharma, a pharmaceutical manufacturing company which is currently in the process of receiving its Licensed Dealer ("LD") to produce cannabis and hemp extracts in Canada. |
Aspirations and Results
| Who do they want to be? | The company seeks to be seen as a major player in the industry, and with all of its acquisitions, Isodiol's stock price has risen significantly over the years and made it appear to be a strong contender - but the value added by its many acquisitions is questionable, as is the company's sustainability. Though Isodiol has earned a decent amount of revenue with its bulk sales, prices are continuing to drop and reducing margins on this front. Very little (20%) of its revenue comes from finished product sales flowing through the several companies it has acquired - e.g. Pot-O-Coffee, IsoSport, Kure, CannaCeuticals, Bradley's, CBD Xtreme, C3 Global Biosciences, etc. - none of which has (yet) proved more than minimally profitable. Furthermore, the company has paid out tens of millions in consulting fees - well above the profits it is bringing in - and in many cases these fees go directly to current or former company and subsidiary Directors. Significant consulting payouts and multiple questionable acquisitions have led the company to dilute its stock, and it appears likely continue doing so in the future - making Isodiol's long-term prospects limited |
| Priorities | Continued international expansion into Latin America, Asia, and Europe - currently UK operations alone are bringing in revenues (outside of U.S.); Establishing profitable operations rather than continuing to rely on capital financing; Shifting to more finished product (rather than bulk CBD) sales |
| Results/milestones aiming to achieve | Expanding beverage brand portfolio, developing sparkling and flavored line (through recently-launched beverage line: IsoBev); Development of over-the-counter and pharmaceutical drugs |
| Chief competitors | Medical Marijuana Inc. |