Laguna Blends Inc fka CNSX:LAG

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Laguna Blends, MLM's, Healthy Boomers and Product Trends
(Part 2)

Part 1 can be viewed here:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117215116

Laguna Blends Inc. (LAG:CSE)
Shares Issued: 44,514,932
Fully Diluted: 54,664,864
http://www.lagunablends.com/

Product Trends

Targeting boomers and their health needs has been an extremely lucrative exercise for many years. Metagenics, for example has a product for menopause that claims to dramatically reduce the number of daily hot flashes.

 Energy drinks continue to evolve. Essential Oils are trending hard, and have become the focus of the scientific community who are investigating their benefits for diseases including cancer, HIV, asthma, bronchitis, heart strokes, testosterone enhancement, to name a few.

Laguna Blends highlight 2 eye-catching statistics on first glance of their home page:

1) The global wellness industry is a $3.4 Trillion market
2) Over 2 billion Cups of Coffee are consumed daily

 Laguna's strategy of launching their initial products, that will focus on the nutritional and health-related benefits of the hemp seed, is pure marketing genius.

Starbucks advertises a new coffee product, that contains 20 grams of protein. It comes with very few additional health benefits.

Compare that with Laguna's whey and hemp-infused soluble (Caffé) coffee. The flavor has an aroma of rich Arabica coffee, with the mouth feel of hot chocolate. 

The proprietary formula is rich in protein and comes in convenient single use packaging for nutrition on-the-go.
 
The hemp seeds used contain 33% protein, and all 20 known essential amino acids. It's the only edible oil that holds the perfect ratio of Omega 6 to Omega 3 essential fatty acids, as recommended by the World Health Organization.

As the Global functional beverage market revenues head towards $100 billion, Laguna is in a unique position with their recent Health Canada announcement.

Laguna's Pro369 is a combination of hemp protein, panax ginseng and micro-encapsulated hemp oil, with 13g of protein and 2.9g of Omegas 3,6 & 9. 

The product is easy to carry and combine in liquid or a smoothie, and is the first totally soluble protein powder.

On September 22, 2015. The Minister of Health granted Laguna a product license for its PRO369 Tropical Powder. This is an important milestone, and it's one of the first hemp flavoured products approved for sale in Canada.

Health claims include:

- A source of protein that helps build and repair body tissues.
- Source of amino acids involved in muscle protein synthesis.
- Assists in the building of lean muscle.
- An adaptogen to help maintain a healthy immune system.
- Supportive therapy for the promotion of healthy glucose levels.

On September 28th, Laguna announced that an initial purchase order had been placed with manufacturing partner PNP Pharmaceuticals, to deliver 16,667 boxes of Caffe to Laguna within the next 8-10 weeks. That works out to a little over 500,000 cups of coffee.

It's interesting to note that a single serving of Laguna Caffé, and one PRO369, plus 2 eggs will get you well beyond half way, to the average daily protein requirement. 

Hemp products in the U.S. are a US$500 million industry. In Canada, sales in the sector amounted to CA$50 million and is forecasted to double in 2015 to $100 million.

Other Benefits from Hemp seed food products include:

- More allergy-free than many other seeds.
- Helps excrete toxins from the body.
- High amounts of vitamin E and trace minerals.
- Easily digestible.
- No phytic acid (like other soy product)
- Absolutely safe and  no known side effects. 
- Used to treat nutritional deficiencies brought on by tuberculosis.
- Reduces the chances of a fatal cardiac arrhythmia or a heart attack. 
- Reduces the amount of cholesterol in the body.
- The richest known source of polyunsaturated essential fatty acids.
- Preventing skin from sagging due to aging.
-  Encourages healthy moist skin.

The U.S. coffee industry total revenue is $40 Billion and growing.

In 2014, the National Coffee Association estimated that 61 percent of adults drink coffee daily. Combine that with the uptrend in protein supplement consumption and Laguna's hemp coffee - that actually tastes good -makes for an exciting upside for investors and distributors.

A few other coffee stats:

- Specialty coffee sales account for 51% of the coffee industry
- 400 million cups of coffee consumed per day
- Keurig estimates 9.8 billion K-cup packs were sold in 2014, a 13% increase from 2013
- Single serve cup coffee market to grow annually by 25%

Laguna is positioned with its healthy hemp products to gain significant market share by acquiring new affiliates and customers.

They are already attracting leaders from other Network Marketing companies such as  Organo Gold. 

Organo Gold, founded in 2008, was launched to bring Ganoderma-infused coffee and other products to the market. 

In 2008, Organo Gold sold US$2 million of healthy coffee. Organo Gold's gross revenues then grew from US$35 million in 2010, to $150 million in 2011 and anticipate over $220 million this year.

The top 3 leaders at Organo Gold are expected to earn $19.2 mil in 2015

Organo Gold is still in a stage of major growth and is expected to have 1 million distributors by 2015.

The Zija, Herbalife, Nature's Sunshine connection and what it may mean to Laguna:

To illustrate the significance of having a successful pre-existing distribution network, look no further than Ken Brailsford, who is considered to be the "Grand Daddy" in the Home Business Industry:

- Founder and President of 3 Mega Success stories
 - Over 35 years in the direct sales industry (Billions of dollars in sales)
- Called the "Father of Herbal Encapsulation” for introducing herb capsules into the market during the 1970s.
-  Produced two billion capsules annually.
- President and CEO of Nature's Sunshine (Market Cap $218 million) for over 30 years. (retired in 1997)
- Top 3 executives presently at Nature's Sunshine all come from Herbalife (Market Cap $4.95 Billion)
- Came out of retirement to launch Zija MLM in 2005 
- 2014 Revenue: $144 million and expecting 20 to 30% growth in 2015
- Ranked fastest growing company in Utah in 2014

Conclusion

Nature's Sunshine (NATR)  reported a total revenue of $165,125 million in the first half of 2015. It looks like the top 3 executives that left Herbalife to run NATR are doing a great job.

Brailsford's Zija, foresee a banner year as well. This clearly illuminates how important strong experienced leadership with a track record is in attracting, and keeping loyal distributors, which is the lifeblood of the network marketing business. 

Who else will Laguna attract with their proprietary healthy hemp-related products?

The Direct Selling Association reported that 18.2 million people were involved in the industry in 2014.

Laguna management has spent over two decades, completing start ups and/or structuring the reorganization of operations in 14 countries on four continents around the world. They have had enormous success in Hong Kong, Macau, Indonesia, Singapore, Thailand, Malaysia, Philippines, Australia, Israel, Jamaica, Costa Rica, Panama, the US and Canada. 

Management has established and launched operations worldwide with over 5,000 independent distributors.

Laguna Blends management team specialize in analysis, corporate and product due diligence, creating necessary infrastructure, staffing and training, government liaison, cultural branding and identity, compensation plan analysis, international business development, and network marketing.

Laguna is very lucky to have an Award-winning  (Skype API Developer Award 2005 & 2006) CTO with 8 years of experience as web developer, project manager and network designer.

One unique feature, that may generate additional revenue streams throughout the direct sales industry, may be the utilization of Laguna's proprietary virtual 3D technology.

 Laguna's strategy is to allow the Independent Affiliates to expand their customer base without the need to travel for meetings and training, using a cutting edge 3D virtual world within which to operate; a merging of video conferencing and gaming platforms gives an immersion experience. This will allow rapid expansion into international markets.

Training and sales can be conducted on a 365/24/7 basis.

Core competencies, such as customer service, warehousing/order fulfillment, and product manufacturing, will be carried out by third party vendors, minimizing fixed costs, lowering the break-even point for profitability, and ensuring scalability at minimum cost.


Laguna Blends Inc. Commences Manufacturing For Its Caffe Protein Coffee 
(500,000 units of Coffee) 
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117298612

Laguna Blends director Gray acquires additional 5.4 million shares (19.29% Fully Diluted) 
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117199203 ;

Chris Parry report on Laguna Blends 
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117199567 ;

Top 200 Worldwide Earners In MLM – January 2015
http://www.businessforhome.org/2015/01/top-200-worldwide-earners-in-mlm-january-2015/

Top 100 Global Direct Selling Companies 2015
http://www.businessforhome.org/2015/04/top-100-global-direct-selling-companies-2015/