New Age Beverages Corporation manufactures, advertises, and has a distribution line for healthy liquid dietary supplements and ready-to-drink (RTD) beverages. NBEV – the Colorado-based healthy supplement company is executing its plan to become the world’s leading social selling and distribution company –and has increased its stock price by over 9% pre-market. NBEV, Net Income improved $61.8 million whereas the prior year a net loss of $4.0 million took place, peaking investor interest in 2021.
NewAge, Inc. Diversifies Into The CBD Sector
NewAge Beverages Corporation has also incorporated CBD with their drinks revolutionizing the concept of CBD-infused liquids. The launch of their CBD beverage Noni+CBD in Japan went through their supply chain of more than 50,000 independent distributors.
NewAge’s Noni+CBD product is the first CBD-infused beverage from any leading company to be approved by the Japanese Ministry of Health and the Japanese Narcotics Control Division for mass production and sale for the general public in the country.
After adequate R&D the Noni+CBD product that was launched with a 50ml shot of Tahitian Noni Juice, emulsified with 25mg of concentrated CBD, and was deemed to be safe for consumption by Japanese health authorities. Hence NBEV being the pioneer for health-related CBD beverages, hold a monopolistic stance in an extremely lucrative market.
Is NewAge (NASDAQ:NBEV) safe for investment in the long run?
NBEV share price has increased approximately 880% higher than the last 5 years. The company has also managed its capital prudently, with debt accounting for only 24% of equity. This means that majority funding has been from its operations from equity capital, and since it has an extremely low debt obligation there is a diminished chance for investing in a loss-making company.
Furthermore, savvy financial decisions like acquiring Aliven Inc., a Japan-based direct selling company that is anticipated to bring ~$20M in annualized net revenue has further strengthened the investor’s belief in the company as it has provided reassurance for the expansion of its portfolio.
Diversification into lucrative markets such as CBD as well as the acquisition of companies such as Aliven INC with a long term plan of increasing their supply chain and distribution network has given NBEV a major stance in the health-beverage industry and has produced a huge increase in the company valuation over the years, peaking share-holder interest for the company.