Proactive - Interviews for investors

BioHarvest Sciences expands VINIA product line with launch of SuperFood Infused Teas

BioHarvest Sciences CEO Ilan Sobel joined Steve Darling from Proactive to share the company has announced the launch of VINIA SuperFood Infused Teas, a new line of functional teas offering the same clinically validated health benefits as the company’s flagship VINIA supplements. The infused teas contain the equivalent piceid resveratrol found in one VINIA capsule, delivering science-backed efficacy with a premium taste. In third-party blind taste tests, the teas outperformed leading English Breakfast and Green Tea brands. All tea leaves used in the product are sourced from Rainforest Alliance certified farms, reinforcing the company’s commitment to sustainability. The new tea line will be available starting December 7, 2024, following a VIP launch for existing VINIA subscribers. This marks the second expansion of the VINIA SuperFood range, following the success of VINIA SuperFood Coffee. In addition to the product launch, BioHarvest shared robust Q3 2024 financial results, with total revenues growing 101% year-over-year to $6.5 million. Gross margins improved to 57%, compared to 45% in the same period last year. The company forecasts Q4 2024 revenues of at least $7.2 million and anticipates reaching adjusted EBITDA breakeven in the second half of 2025. Sobel highlighted the company’s ongoing mission to deliver innovative, science-backed functional foods that promote health and sustainability. #proactivinvestors #cse #bhsc #otcqb #cnvcf #pharma #biotech #hearthealth #BioHarvestSciences #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Duration:: 8m
Broadcast on:: 27 Nov 2024
Audio Format:: other

All right, welcome back inside our proactive newsroom. Joining me now is Elon Sobel. He is the CEO of BioHarvest Sciences. And he's on great to see you again. How are you? Steve Darling, it's always great to see you. We're doing fantastic. Thank you. Good to have you along. Couple of things I got to talk to you about. I know your Q3 financial numbers came out. We're going to talk about those in just a second because within those numbers, obviously, there's some results from your coffee line. And here here today to talk about the T line, which you have just launched as well. So it's an exciting time for the company. Coffee now is a friend and tea. Absolutely. We've now rolled out our hot beverage strategy with launching our VINIA superfood blood flow energy coffee. And as we saw yesterday announced some great news with the launch of our VINIA superfood functional tea line. You know, we set embarked on the strategy of really leveraging what we call our VINIA inside strategy, Steve, where we've taken key delivery mechanisms for American consumers. And you know, Americans live on coffee and teas such a significant category and so much part of their overall consumption behavior. And the strategy is to go in and disrupt these categories where consumers are really yearning. Yearning for better for you health and wellness credentials from the brands that they consume. So our strategy is all about superior science, leveraging the power of our botanical synthesis technology plus superior efficacy anchored in the power of our clinical trials. And of course, Steve, as you know, superior taste because nothing leaves our stable until we've gone through rigorous quantitative taste testing, making sure that our products with VINIA, our coffee, and our teas actually takes better versus market leaders in these categories. So the coffee, our superfood coffee now has been in the market for about 11 months. It's performed amazingly well. We've sold north of one and a half million dollars of our VINIA superfood coffee. The overall consumer response has been amazing. And so it was very important for us to get out of VINIA superfood tea. So we can actually start to market the two together as part of our hot beverage portfolio. And yesterday we launched our superfood teas with four flavors, an English breakfast tea, a green tea, matcha green tea, and a cranberry herbiscus tea. - There you go. And they'll be available to everyone December 7th. Some of your subscribers got a getting a little taste early. So just in time for obviously getting set for the rest of December and then in 2025. And that strategy has done really well with you as far as the coffee is concerned, it's a similar launch as to what you did with coffee. - Yeah, you know, the exactly right, great observation. I'm drinking a little bit about cranberry herbiscus tea here. You know, basically for all our consumers, we actually have the website live now. If many of our investor partners or consumers out there want to go out and purchase our our new Vineyard superfood functional teas, they can do that already on vinea.com. You'll go in and you'll see very clearly the channel to actually purchase our teas. And even in the last 24 hours, we've seen some amazing engagement from consumers because ultimately at the end of the day, consumers looking, they're yearning for that better for you health and wellness credentials. And when we bring it to them, anchored in our clinical trials, anchored in great tasting, high quality tea. As you know, our tea is all rainforest certified. We utilize across all of our tea lines, organic tea. And then together with the power of vinea integrated into it, it really gives us very, very strong, valuable health and wellness proposition. - So as we mentioned, coffee's been out for about 11 months now that really has pushed into your financial numbers which we should discuss now because a year over year, you're looking at a 101% increase in total revenues, very strong numbers again, Elon. - Yeah, we're very happy with the third quarter results. You know, the fact that we've increased, doubled the business is significant. That growth, Steve, has been driven largely by a very healthy capsule business. Our core business has amazing momentum. And then you overlay that with the incrementality of coffee. You know, we start to see significant growth rates which ultimately is allowing us to scale our business. And with the scaling, we're seeing significant impact, positive impact on improving our overall gross profit margins where we increase gross profit margin by 1,200 basis points versus last year moving from 45% gross profit margin to 57% gross profit margin in the third quarter versus year ago. So, you know, this is critical. All these aspects really help us bring the scale of a portfolio from as it relates to our direct to consumer wellness business. We've actually, the pricing structures continue to drive the maniacal focus on actually subscriptions. And as you know, 90% of our customers that come through our website are actually subscription customers. And that growth rate, our subscription customers grew 128% versus last year. And this is critical because these customers have a significant lifetime value given the power efficacy of our VINIA red grape cell molecule and how it dramatically changes people's overall health and wellness. - Okay. Lastly, Elon, looking ahead, you hinted the news release that you expect to be even a break, even in the second half of 2025. Keep milestone to look forward to. - Correct, you know, as from management perspective, we're really nurturing this fine balance between, you know, driving, you know, critical revenue growth and profitability while scaling the business. We're really gonna be coming out of the, coming out of the blocks, as they say, in next year, racing, racing hard. We've got a very aggressive innovation agenda and launch plan as it relates to continue to launch additional two SKUs in our T lineup, which are actually gonna be K-Cup SKUs. So currently we've launched T Sashays, which is great because consumers don't need an espresso machine or a Keurig machine. Everybody can, you know, basically, it helps us really democratize the proposition when it's in a T Sashay. And we'll be launching our breakfast tea at a matcha green tea in a K-Cup to complement our sashays. And then also in the first quarter, we'll be launching the first veneer superfood espresso in an espresso compatible pod. This is really unique functionality that in the past has not been available in the much smaller espresso compatible pod, followed by our two product in the market, which is part of our veneer pro lineup, which has an athletes formula double dosage. And then our veneer hydration product, where we're gonna be disrupting the $13 billion hydration category. So it's a really intense start for the year. And as we look to scale the business and as we then move into the second half of the downhill, we believe we'll be generating the revenue levels and gross profit levels that can land the business to that EBITDA profitability that we're so focused on. - All right, lots to look forward to in 2025 for sure. Ilan, thank you so much. Good update and good to see you as well. - You'll be seeing a lot of me next year, Steve. - All right, look forward to it. - Happy day, Nicole. - Yeah, see you pal. Ilan Sobel, the CEO of Bioharvest Sciences.