WHITEFISH, MT / ACCESSWIRE / July 13, 2015 / Enertopia Corp. (OTCQB: ENRT) (CSE: TOP) announced its diversification into the health and wellness space in early 2015 with the launch of V-Love(TM) - a female sexual gel product. Since then, management has been working diligently to build distribution channels for the new product and develop additional products to launch in the space.
A Growing Market
V-Love(TM) is pH balanced specifically for women and provides lubrication and a moisturizing feeling to sooth vaginal dryness. In the U.S., the market for personal lubricants represents a $219 million opportunity that's ripe for innovation. The Canadian market - where Enertopia is initially focused - is valued slightly less than the U.S. market, but still represents a significant market opportunity for the micro-cap stock.
K-Y Jelly is the most popular brand of personal lubricant worldwide, generating more than $100 million in sales across 50 countries, according to regulatory filings. While the product was initially introduced in 1904 as a surgical lubricant, it was eventually acquired by Johnson & Johnson (NYSE: JNJ) and introduced as a sexual lubricant.
There's a growing opportunity for innovation within the market given the problems facing many existing leaders. For instance, some lab studies have shown that lubricants can damage the epithelial cells lining the vagina and rectum, with the potential for increasing the risk of sexually transmitted diseases, like HIV and Chlamydia. Many of the world's leading brands employ compounds like polyethylene glycol and glycerol that may cause these issues.
Expanding Distribution
Enertopia has been making significant progress building distribution channels for V-Love(TM) over the past several months. While initial sales of the product came from wellness conferences and events, management has been successful in attracting new physical retail locations and online retailers in recent months. These partners promise to help improve sales over the long-term by exposing the product to an increasing number of potential customers.
V-Love(TM) initially went for sale at Loblaws City Market in British Columbia, but the product's retail presence has since been expanded to include nearly 80 London Drug locations throughout Western Canada. These drug stores are a lot like Walgreens Corporation (NYSE: WAG), CVS Health Corp. (NYSE: CVS), or Rite Aid Corporation (NYSE: RAD) in the U.S., carrying a lot of personal hygiene, cosmetics, and electronics products. The presence at these locations is also ideal for cultivating so-called impulse buys.
In addition to these retail locations, the company recently announced that V-Love(TM) is available for sale on Amazon.ca - the Canadian division of Amazon.com Inc. (NASDAQ: AMZN). Amazon has been steadily growing its Canadian presence with the launch of new product stores and Amazon Prime services a few years ago, which provides free shipping for certain products (customers view timely shipping as a chief reason when shopping online).
New Product Development
Enertopia plans on launching a number of products into the health and wellness space over the coming years. After selling its wholly owned Thor Pharma Corp. subsidiary in June 2015, which possessed its Burlington MMPR license application, the company has been able to focus on building strong distribution channels that can be shared between any new products that it launches down the road.
Over time, the company could grow to compete with Steiner Leisure Ltd. (NASDAQ: STNR) or other private companies targeting the health and wellness space. These new product launches should help further diversify revenue and build long-term shareholder value by targeting new billion dollar markets across Canada and the United States.
Looking Ahead
Enertopia has diversified its focus away from cannabis and into other areas of the health and wellness industry. With the launch of its V-Love(TM) product, the company has already begun generating revenue in a market worth more than $200 million each year.
For more information, visit the company's website at www.enertopia.com.
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SOURCE: Emerging Growth LLC
