Interview with Deep Nature Project GmbH
Like Aurora Cannabis and Canopy Growth, Deep Nature Project GmbH focuses on value chain
time to read: 3 minutes | The interview was conducted by Mario Hose on May 19th, 2020 in Gols (AT).
Finance Department | Deep Nature Project GmbH
Untere Hauptstraße 168, 7122 Gols (AT)
+43 681 10139055
Table of contents:
Business model of the company
news|financial: "Mr Dorfmeister, could you please describe the business model and the strategic focus of the company?"
Before I explain our business model, I would like to say something about the products we deal with and process. These are based on so-called industrial hemp, which may contain a maximum psychoactive substance level of 0.2%. Due to the health benefits of cannabinoids, there is a possibility that CBD and other of the more than 100 different cannabinoids in the hemp plant will be used in future in applications such as dietary supplements and pharmaceutical accompanying ingredients.
For Deep Nature Project GmbH (DNP) this is the foundation of the business model and will be implemented operationally in the fully integrated value chain. Since 2014, we have started the first cooperations with organic farmers in Austria and Germany and have continuously developed them. This means that sowing, cultivation and raw material production comprise the first stage. Further processing into secondary raw materials, into raw extracts, proteins and hemp seed oil is then the next step in the value chain. This is followed by refinement into semi-finished products. This means the production of pure substances, such as 99% CBD oils. Before the products are shipped, they are finished to final products. This process includes the final mixing and filling of different recipes.
The strategic focus is to establish ourselves in Europe with our broadly diversified, exclusively organic product portfolio and to expand gradually. The cultivation areas and processing lines already provide for larger capacities.
USP over competitors
news|financial: "What makes you different from your competitors?"
Deep Nature Project GmbH is one of the few companies worldwide that combine complementary unique selling propositions. This includes the already outlined fully integrated organic value chain: from the field to the bottle. We practice sustainable agriculture, which is highly appreciated by organic farmers, the utilization of the whole plant: from the stem to the leaf. And we have put together a team of experts that is unique in its composition: agricultural, food and financial experts, as well as production and distribution specialists.
DNP also has a diversified portfolio of 40 products clustered in eight groups. And this portfolio is constantly growing, as our company has its own research and development department.
Outlook of the cannabis market
news|financial: "How do you expect the market and the development?"
In this context, the market must first be differentiated according to the characterisation of the raw material: On the one hand there is industrial hemp, which may contain a maximum proportion of the psychoactive substance THC of 0.2%, and medically applied hemp (medical cannabis). The Deep Nature Project GmbH cultivates and processes exclusively industrial hemp. According to industry estimates, this market with its forms of application currently comprises a sales volume of around EUR 2 billion with 80 million consumers in Europe, of which around 50% were new consumers in 2019 alone. As in recent years, we expect further annual growth of 30 - 50%.
Positioning in the Health Sector
news|financial: "What role will DNP play in this?"
Deep Nature will play a very active role in this development process, as it has in recent years. In the currently highly fragmented market we will expand our position and, as already mentioned, we will be one of the top European players. Our vision as well as our goal is to establish the organically grown and processed industrial hemp plant with its active ingredients for health and well-being in the form of food and dietary supplements in a sustainable manner.
Vision and Future Opportunities
news|financial: "What are the steps and goals for the next few years?"
On the one hand, we will expand our portfolio of products and services, initially in our home markets, and develop further regions. The organic cosmetics brand Sativa Beauty and algavital - an algae active ingredient line - will already be launched this year. On the other hand, there will be an expansion of sales activities, primarily in Europe. We have the entrepreneurial goal of establishing ourselves in the top league of European producers of organic hemp and vital products, while maintaining the same high quality.
news|financial: "Thank you very much for talking to us."