OCT 2 Inergetics Interview by Green Rush Investors
GRI Interview: Inergetics NRTI
CEO/CFO Michael James (MJ) and CMO Jim Kras (JK) at their Newark New Jersey headquarters. What are the type of CBD product lines you plan on coming out with?
MJ: We have not disclosed that to the public yet, but we will be launching this product line in 2015. We want to under promise and over deliver.
Who are your emerging competitors in your industry space?
JK: If you are talking nutriceuticals we are frankly the first market mover in that space. For different reasons, the larger companies just do not need to take on the risk. The smaller companies can’t execute because they do not have the resources that we do to go to market. It is one of those rare opportunities for us and we should be a first market mover in the marketplace. One company that we could have direct competition with down the road is GW Pharmaceuticals (GWPH).
What part of your business is holding you back currently or giving you the hardest time?
JK: There is sort of a short term need that has been identified for medical cannabis, but its going to be the longer term opportunity identifying that and being able to align resources, timing, marketing spend with that identification making sure that we are being efficient. Then when we go to a mass marketing environment and what that looks like. Being a first market mover is an advantageous position to be in, but you have to make sure when you do come to market you are defined on where you want to go. So the challenge is what is the consumer going to look like as we grow. We are coming out with products that are going to help people, we are going to bring a whole new line of innovation to the marketplace and we have to make sure we capture the right audience.
Without there being any regulatory bodies for CBD production and distribution how do you plan on advancing?
JK: We are not only going to be the gold standard, but we are going to bring standardization to the industry as a function of having our medical advisory board. If you go through each person on our scientific board, each person has a specific role. Dr. Michelle Sexton who has helped write the monograph on CBD, is working directly with Carl Germano our Chief Science Officer to make sure we set and keep quality and consistency to the highest standards.
So you guys are in a position to create your own standard for the industry?
JK: Doctors for years stayed away from nutriceuticals and CBD’s in fear of losing their medical license. Now that mentality has completely changed. A doctor now see’s the CBD arena and believe that this can help my patients. Now they can see an innovative company with a top formulator that has spent years in due diligence and scientific background creating the highest quality standard formula available.
What is your primary source of revenue for all your brands?
MJ: I would say currently Martha Stewart Brand followed by Bikini Ready.
What is your relationship with TerraTech?
MJ: I have been associated with TRTC since June of 2010, I am currently the CFO. So the relationship was here we are in the nutraceutical world and I was aware of CBD, and what it can do to help children with seizures. I had multiple conversation with TRTC CEO Derek Peterson about coming out with a product that does not have thc but has just CBD or different cannabinoids that can help people. Through conversations we thought it would be great if we could do something together. We then entered into an agreement that we would source cbd from TRTC. Part of the agreement is they could open up entry to a bunch of dispensaries for us on the west coast. We entered into that agreement in February of this year. From there we decided to put together a medical advisory board. We had the initial meeting in Belvidere, NJ and everyone flew in for that. We spoke about dosages and what targets we were looking into whether it be nausea, eating disorder, pain management and a whole bunch of different things that everyone spoke about. We continue to work together in figuring out what is best for the consumer from a scientific standpoint.
Do you think there is a part of Inergetics that is being ignored by the public?
MJ: We think a lot of the business is being ignored, we feel we have done a fantastic job in the last two years by diversifying the revenue base. We have the Surgex Brand, Bikini ready brand, Slim Trim Brand, Martha Stewart Brand and you look at the demographics buying these products. Then when we go to CBD it could really be anyone of any age taking this product. Today we are at 17,000+ doors and most of that has been done in nine months. Those distributions throughout the country will help us when we come out with our CBD product.
