This collaboration could represent a significant opportunity for Neptune, a company dedicated to scientific and technological expertise in the global cannabis and hemp markets, to partner with a U.S. ingredients firm. With IFF now ranked as the second-largest company in the flavors and fragrances sector, this partnership could enable Neptune to access a much broader U.S. customer base and potentially expand its global reach. Recently, IFF underwent a reorganization, establishing one of its three new divisions focused on nutrition and ingredients. Teaming up with Neptune may enhance this restructuring by providing the U.S. company with increased and diversified access to Canadian markets, where Neptune has cultivated relationships through its health and wellness products.
The partnership is likely to capitalize on Neptune’s newly developed state-of-the-art U.S. supply chain, which the company highlighted following its acquisition of SugarLeaf earlier this year. This strategic positioning could help Neptune achieve its ambition of becoming a global leader in the extraction, purification, and formulation of value-added cannabis and natural health products. Although the specific nature of these products remains unclear, Neptune has indicated they will be plant-based, including hemp-derived CBD items. This suggests a potential range of products, including oils, edibles, and beverages—trendy offerings that are increasingly surfacing in the market. Hemp ingredients such as CBD oil, powders, and seeds could be utilized to enhance beverages like iced tea and added to various foods, including sparkling water, ice cream, and salads. Neptune and IFF may collaborate in this area as well, though some items might fall outside their current expertise.
Despite the debut of such infused products, the U.S. Food and Drug Administration maintains that CBD cannot legally be sold in conventional foods. This position is unlikely to shift unless the agency introduces interim regulations or Congress intervenes. Recently, some congressional members have urged the FDA on this matter, but it remains uncertain whether this will lead to any immediate practical changes. Canada has legalized recreational marijuana for about a year and will allow the sale of certain cannabis-infused products—such as edibles, beverages, topicals, and extracts—in stores starting in December.
In light of the uncertain regulatory climate in the U.S., other companies continue to advance their development of CBD ingredients. For example, Socati, based in Oregon, has recently launched an oil product and a water-soluble powdered version derived from CBD, claiming it can tailor hemp ingredients for the consumer packaged goods market. Additionally, Layn, previously known for sweeteners, has ventured into the CBD space with a $60 million investment, which includes a U.S. facility for processing this ingredient. Ingredients companies stand to benefit significantly from participating in this promising market, with Nielsen projections suggesting that nationwide sales of hemp-derived CBD products could reach $6 billion by 2025. For Neptune, the new partnership with IFF could provide a crucial advantage in an increasingly competitive segment, especially as they explore opportunities to integrate offerings like solaray cal mag into their product line.