industrial hemp - gdi international inc · 2020-02-17 · 2018's bill legalized industrial...
TRANSCRIPT
Industrial Hemp
Creating Better Days ™
By helping you unwind at the end of the day
Copyright 2020 GDI International Inc
Hemp Cradle to Grave
The Three Primary Revenue Streams
GROWING
PROCESSING
END USE PRODUCTS
3 different primary chemicals from the same plant species
TCH
CBD
CBN
GROWING
On the surface Hemp is exponentially more profitable than corn of soybeans it seems…. Well maybe that’s because it is.. IFyou own a farm, equipment, resources for product sale after the harvest. There are many components that need to be considered before leaping into the farming side of Hemp.
2018 Federal Farm Bill
2018's Bill legalized industrial Hemp and the production of Cannabidiol (CBD) oil from the hemp plants. Industrial hemp has over 25,000 recorded uses. You read that right. It can be used to manufacture cotton, plastic (Lego has just invested $20 million into a project to investigate building Lego blocks out of hemp), paper (cheaper to produce, using less space, and being far more environmentally friendly), biofuels, and many, many more.
The number of US acres devoted to hemp is 100 times greater than five years ago
Hemp Depot, a Colorado Springs, Colorado, business that operates its own farms and is a distributor of CBD and hemp products.
"My advice to farmers is learn as much as you can about it and then enter at your own risk."
The company planted 5.2 million hemp plants in 2018. "This year we are planting three times that number. We're trying to keep up with demand for CBD and scale up production," said Rodosevich.
Hemp Depot charges $35 to $40 for a pound of the high-end hemp it sells for CBD products. Last year, the business sold about 25,000 pounds of hemp, helping the farm log a total of $10 million in sales. This year, he expects to sell 350,000 pounds with total sales crossing $50 million. Rodosevich said the goal for next year is to sell 2 million pounds.
Blue Forest charges $35 to $40 per pound for the high-quality hemp it sells for CBD extraction. That compares to about $1
a pound for the kale it sells.
"While hemp is unbelievably profitable for farmers, growing it has its challenges," he said.For starters, the seeds aren't cheap. Good quality seeds guaranteed to provide high CBD levels and low amounts of THC that fall below the federally mandated 0.3% threshold, can range from $1 to $2 each.
Hemp farming is also labor intensive. While large-scale farms use machinery for growing traditional crops like wheat and corn, specific machinery for planting and harvesting hemp is still lacking. So hemp farms rely on manual labor for planting, harvesting and removing weeds.
Randy Wenger, a corn and wheat farmer whose 5,000 acre farm in Yuma County, Colorado, has been in the family since 1919, tried hemp farming for the first time last year."I was looking for an alternative crop that could be profitable for me and wouldn't break the bank," he said.
Even though he sought advice from other hemp farmers and researched farming techniques online, it was still a challenge. He was surprised at how much manual labor was needed to tend to hemp. "You can spend a lot of money just on the labor," he said.
The hemp he was growing for CBD didn't turn out to be the best quality either. 'It was a total failure," said Wenger.Nevertheless, he is willing to try again."CBD is a popular topic," said Wenger. "But my advice to farmers is, learn as much as you can about it and then enter at your own risk."
But if too many farmers get into the hemp business, the market could become saturated and prices could start falling…
CORN COMMODITY CHART
When Hemp becomes a commodity
Should we start out with Farming??
YES NO
YES BUT NOT YET MAYBE
IT IS in our best interests' long term to own the farms and processing, but there is more low hanging fruit available now… so C is the right answer for now.
PROCESSING
So let's say… this isn't us for now…
Let look at the processing end of the business… because if one day we do own farms, tractors and such we might as well own the equipment to help turn the hemp into a usable commodity.
Yep, hemp use and hemp processing even predates these guys by 8,000 years
NEWER TECHNOLOGIES
We won’t have to beat the hemp
against a rock or hand grind the seed… anymore, new
technologies are emerging daily to do the dirty work for us.
This is still, mid level hanging fruit as it is capital intensive, probably less than owning farmland, and such, but still capital intensive… there’s still better fruit… low hanging and sweet fruit at that.
BUT… which ONES and HOW??
These are the customers…we need to reach.
There are over 25,000 potential products made from hemp, fiber, seed, oils and such… so where is that low hanging fruit?
These are just a sampling of the giants we don’t need to tangle with in the beginning… we can come back to them in the future…
It may be in the beverage industry…
253.8 billion annually
The top 3 generate $10 billion plus per year
There are many companies already running into that space..Beers, wines, soft drinks, waters and such backed by huge
companies with billions in revenue and in the bank
No matter what they put in beer or wine, too much and this is the result of unwinding with their products.
These guys have one purpose….
Put some pep in your step….
The sales of the top 3 Energy Drink competitors
are over
$10,000,000,000 (billion) annually.
Type Size Price
5-hour Energy Berry Extra Strength
10 x 1.93 oz. $21.99
Walmart
5-hour Energy Berry Regular Strength
1.93 oz. $2.48
5-hour Energy Grape Regular Strength
1.93 oz. $2.48
5 Hour Energy Prices
Annual Revenue: $1BB in Retail Sales. Company Revenue of $600-$700MM. $300MM
Type Size Price
Original 8.4 oz. Can $1.99
Sugar Free 8.4 oz. Can $1.99
Original 12 oz. Can $2.59
Sugar Free 12 oz. Can $2.59
Red Bull Prices
6.137 billion USD
Type Size Price
Ultra Sunrise 16 oz. Can $1.99
Ultra Violet 16 oz. Can $1.99
Zero Ultra 16 oz. Can $1.99
Regular 4 x 16 oz. Can $6.49
Monster Energy Prices
Products Energy drinks
Revenue US$3.369 billion (2017)
Owner The Coca-Cola Company
So what’s that have to do with this and the
price of tea in china…???
EXPLAINING
5 Hour Energy started out simply placing these displays on counter tops across the nation with no advertising.
The box and bottles told the story for this now $1 billion in revenue product line that cause an entirely new line of products to erupt shortly thereafter… they were the front runners.
SO… here is that low hanging fruit finally…
What % of people do youthink are like this at the endof their day??
So they do this…
To get home and do this…
Our Low hanging fruit is
this…
Flavored end of day drinks… You had your
5-hour ENERGY drink your Monster, Red Bull just
to get through the day,
But now you need to Chill… In 2004 Manoj Bhargava's
company, Living Essentials LLC,
launched a product called;
"5-Hour Energy”
By 2012, retail sales had grown to an estimated $1 billion
By using a specially emulsification of CBD and a non-intoxicating derivative of CBD we can blend a special line of products designed to help you unwind at the end of the day… The product will not cause you to fail a drug test, have lingering effects such as hangovers and court cases, and has more bang for the buck than the best liquors, wines and beers on the market.
We also have a secret sauce to add to the mix
The products will help you r… e… l… a…x… Sleep, Stop Worrying
Formulas that are fast acting, and slow release (over 4 hours)
Depending on the underlying chemistry.
Non-Addicting, Non-Intoxicating, Controlled Formulas and Processes.
WHEN YOU NEED TO:• REST• SLEEP• UNWIND• RELAX• CHILL
Chill, Evenings Rest, Mint, Berry, Chocolate, Tabasco Spice, Bliss, well being, Mello, End of the Day, Konbuchu, Chamomile
tea, relax wind down, unwind
Just some of the ideas being kicked
around
So why are we even talking?
Were looking for the seed capital to bring this project to life.
We need to acquire:• Chemicals• Blending facility• Packaging and Marketing materials• Staffing• Trademarks• Product testing and samplings• Co-Packer• Cash to carry project till revenue positive.
This window of opportunity is closing
as this industry is emerging at a rapid
pace daily.
CONTACT:
GDI INERNATIONAL [email protected]
www.gdiintinc.com
All CONTENT AND MATERIALS ARE COPYRIGHTED GDI INTERNATIONAL INC 2020