Rritual Superfoods (CNSX:RSF / FAR: 0RW) is breaking new ground this month as it inks a letter of intent with NEXE Technologies Corp with will in effect allow for the creation of new products that will come in compostable packaging.
Rritual has from the very start said that it wants to redefine the North American retail landscape when it comes to the superfoods category of health products – mushroom-based food supplements which underpin a better standard of healthy living. In this case the tie up with NEXE is going to pave the way for the packaging its consumers want – i.e. something that is not going to clutter up the planet.
Rritual is putting in place the core of its distribution strategy
Rritual listed in Canada in March and has been off to a great start in the last couple of months. The core product here is what are called functional mushrooms, which produce bioactive compounds and metabolites that can be used to promote both a healthy gut and a healthy mind. Already widely used in Asia, these superfoods are catching on in the West as well and are being regularly promoted by celebrities and top athletes.
CEO of Rritual Superfoods David Kerbel said that he felt this was “crucial to our brand promise, but which in future will be necessitated, as mass retail buyers we are working with have indicated.”
We tend to agree: we can see a scenario where more and more food products will be packaged in completely bio-degradable packaging. It has to happen.
Rritual and NEXE have said they are going to be cooperating on further product development and commercialisation collaboration, with the target of a new line of innovative superfood beverages.
What is the Rritual Superfoods offering?
Currently Rritual product offerings are the only functional health products on the market that contain a daily prebiotic blend which can nourish a healthy gut microbiome and facilitates balanced digestive function. Ritual makes chega powder for immune system boosts, lion’s mane powder to counteract the inflammatory response in the brain, and reishi powder to manage stress.
We think partnering with a specialist in biodegradable packaging makes a lot of sense. It captures a trend we expect to see playing out globally over the next five years. We are only really at the beginning of this transition. NEXE specialises in plant-based, fully-compostable packaging and we can see this being much in demand from early adopters now, and the mass retail public in North America over the next few years.
Key to revenue growth at Rritual is going to be the network of strategic sales and marketing relationships it is putting in place this year. This includes deals already announced in the US and Canadian markets, working with specialists in what we like to call the elite health foods market. It is a market that is poised to grow further as we are seeing wider adoption globally, especially in the 20-35 age bracket which is simply more health and food conscious than previous generations.
The numbers speak for themselves: this market was valued at $137bn in 2018 and is estimated to be growing at a CAGR of around 5% a year. Rritual is positioned in the even faster growing superfoods / adaptogens segment, which is growing at a pacey 8.55% per year.