The investment will see Kemin expand its current offering of hemp-based ingredients with the addition of Driftless Extracts’ full-spectrum hemp ingredients for the health and wellness market in the United States and globally.
The United States retail hemp-cannabidiol (CBD) market is currently valued at USD$803 million with growth expected to reach USD$1.2 billion in 2023, according to Nutrition Business Journal’s 2021 Hemp Special Report.
Driftless Extracts, based in Lone Rock, Wisconsin, sources its hemp from growers located in the so-called Driftless and Central Sands growing zones in Wisconsin. Both terms relate to features arising from the state's glacial history: 'driftless' because a portion of western Wisconsin was not covered by ice in the most recent glacial episode and 'central sands,' which refers to extensive areas of sandy soil that formed the bed of a glacial lake.
The company operates from a LEED-certified Gold facility in Wisconsin and aims to establish a renewable materials industry within the Great Lakes manufacturing sector that marries natural hemp materials and manufacturing. It has already established dozens of renewable hemp products, including cannabinoids (extracts, powders) and various hemp-fiber products.
“We are excited to be partnering with Driftless Extracts, a company that pairs its strong cannabinoid ingredient portfolio and extensive cultivation experience with a passion to shape a better future through sustainable solutions,” said Dr Chris Nelson, President and CEO, Kemin Industries.
“We look forward to accelerating innovation through hemp plant science, furthering our vision to sustainably transform the quality of life for people around the world. Kemin recently announced our commitment to achieving net zero greenhouse gas emissions by 2050, and we appreciate the alignment working with Driftless Extracts brings to this important ambition.”
Ed Liegel, CEO, Driftless Extracts, added: “Driftless Extracts is thrilled to partner with a company of Kemin’s stature in the general wellness ingredient space, as Kemin has a proven ability to deliver innovative and quality plant-based products to the marketplace.”