- Has a patented process for isolating omega-3 fatty acids from flaxseed
- It is the exclusive distributor of the Iron Energy drink under the Mike Tyson brand
- Establishment of Iron Energy as a leading product category in the energy drink segment
LeanLife Health Inc () (OTCQB: LNLHF) (FRA: LL1) supplies a variety of quality products, including highly concentrated flaxseed omega-3 oils and Mike Tyson-recommended Iron Energy drinks.
The Vancouver-based company is the exclusive distributor of the Iron Energy drink. The FoodCare Group, supplier and manufacturer of iron energy, is a leader in the Polish energy drink market and a leading brand in the Middle East. LeanLife believes Iron Energy will appeal to North American consumers as well. The combined US and Canadian energy drink markets are valued at more than $ 14 billion annually.
Separately, the company has developed a patented process to isolate omega-3 fatty acids from flaxseed – one of the richest vegetable sources of this essential fatty acid.
The company’s long-term, shelf-stable extractions are available in oil, emulsion and powder form with a purity greater than 98% and can be used as food additives or nutraceuticals.
LeanLife is following a wellness trend as Millennials believe that there is one type of fat that you will never want to limit: omega-3s. They like to include the “miracle fat” in their diet and eat it with impunity in almost anything. As a result, the largest categories of omega-3 products are not dietary supplements, but millennial staples such as milk, bread, cereal, pasta, juices, and cheese with the omega-3 fatty acids added.
LeanLife’s products are sold online and used by food processors in Europe as additives in the manufacture of staple foods from bread to dairy products.
Studies have shown that omega-3 fatty acids allow nerve cells to function optimally. The wellness molecules are linked to improved mood, healthier hearts, reduced joint pain, reduced triglycerides, and healthier skin. High-fat nuts and seeds, especially flaxseed, contain a type of omega-3 called alpha-linolenic acid (ALA).
How is it going:
In April 2021, LeanLife announced that the first containers of the FoodCare Group’s Mike Tyson-branded energy drink had cleared customs in Los Angeles and had found their way to its Arizona sales office. LeanLife said the Iron Energy drink will be positioned to appeal to a large consumer base.
Market share growth is expected. “The broad base of health and sport-oriented consumers is drawn to this unique product alternative,” said the company. LeanLife announced in February that it had ordered an additional ten containers of iron energy from the FoodCare Group in anticipation of strong US sales to put its retail and online channels.
Given the positive response from major American retailers, Stan Lis, CEO of LeanLife, said the company expects to order at least 140 containers for the American market in 2021. The company aims to open up additional markets in the course of the year.
In February, LeanLife entered into a management consultancy agreement with Big Venture Sales Ltd and its CEO Robert Hatch to start selling Iron Energy online on its own website and through Amazon. In addition to brick-and-mortar retailing, Big Venture will also be responsible for distribution and storage to facilitate online sales.
LeanLife focuses on developing Iron Energy into one of the leading product categories in the energy drinks sector. Red Bull is the market leader, followed by Monster and Bang. While Red Bull has a premium pricing strategy, IronLife says Iron Energy will have an aggressive pricing and the shelf will be positioned to appeal to a broad consumer base.
In January, LeanLife announced a sales agreement with Eclypse LLC, a privately held US beverage company, to expand Iron Energy. Eclypse’s chief executive officer, Cathal O’Flaherty, spent over 16 years at helping the company generate more than half of its total US sales from imported beer. To motivate Eclypse, LeanLife said there will be milestone bonuses when Iron Energy sales reach $ 10M and $ 20M.
In January, LeanLife announced that it had submitted nine Temporary Market Authorizations (TMA) to Canada’s Food Inspection Agency (CFIA) for iron energy. Currently, all caffeinated beverages sold in Canada require a TMA, and uses include all three flavors in all three sizes of the Iron Energy drink. LeanLife found that the approval process takes many months. The company said it will build on Iron Energy’s American brand awareness to later start sales in Canada.
Regardless, LeanLife is gaining traction as its proprietary processing produces stable and high levels of omega-3, an oxidation-resistant product that is a clear benefit for storage. It has a shelf life of more than two years and the thermal stability ensures that its products can be used for baking and freezing.
In April 2020, the company signed a sales agreement to sell products in 18 Asian countries with health food industry veteran Desmon Yau. The deal will bring LeanLife products to China, India, Indonesia, Pakistan, Japan, Philippines, Vietnam, Thailand, South Korea, Malaysia, Singapore, Taiwan and Hong Kong, among others. LeanLife also increased sales by hiring former co-manager Marisa Sanchez to sell its products in Mexico.
Similarly, LeanLife has signed a 10% commission sales agreement with Rob Hatch that gives him the exclusive right to sell the company’s products in Canada and the United States. ARYZTA, a Zurich bakery with a turnover of 4.2 billion US dollars, is experimenting with LeanLife products in its bread with funds from the European Union. LeanLife also has an understanding with RD Heritage Group LLC to support marketing strategies and sales of its products.
On the production side, LeanLife continues to improve the manufacturing processes. In February last year, the company increased production, reduced costs and increased profit margins by installing new equipment. With an upgraded reactor for its exclusive extraction process, the company can now produce more than 300,000 liters of its unique omega-3 flaxseed oil product each year.
LeanLife capitalizes on latent demand as the global omega-3 market is projected to top over $ 57 billion by 2025, according to a report by Grand View Research Inc.
On the funding front, LeanLife settled debt in November 2020 by issuing 9,800,000 units at the rate of $ 0.06 each for $ 588,000 in debt. Each unit consisted of one share and one share purchase warrant to buy an additional share at $ 0.08 each. Officers and directors took a total of 3.3 million units.
- Moving an inventory of 1 million cans of iron energy through retail and online channels
- Entry into other markets during the year
- Leveraging synergies that LeanLife’s Omega-3 products could bring to some of the FoodCare brands
What the boss says:
“Given the strength of Iron Energy combined with legendary Mike Tyson’s branding, we are confident that we can establish ourselves as one of the best energy drinks in the North American market,” said Stan Lis, CEO of LeanLife Health, in a recent statement Opinion.
He added, “It will be positioned competitively against leading brands like Monster and Red Bull. After a successful roll-out in North America, there is an opportunity to acquire additional areas around the world. My goal for the year is to sell at least 120 containers in the US and secure additional sales in other countries. “
Contact the author Uttara Choudhury at email@example.com
Follow her on Twitter: @UttaraProactive