Bloomios expands production capacity by 300%

24-May-2022 - Last updated on 24-May-2022 at 12:15 GMT

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From ingredient sourcing to in-house quality and potency testing for each batch, the hemp and nutraceutical manufacturer said it's bringing full chain of custody certainty to its retail brand partners.

Bloomios has completed a major expansion of the company's manufacturing and fulfillment systems at its new state-of-the-art 50,000 square foot manufacturing facility in Daytona Beach, FL. The company specializes in full service product development, R&D and compliance solutions.

Michael Hill, CEO, Bloomios, told NutraIngredients-USA that the decision to expand came down to two primary factors. First, continued robust expansion in the overall North American cannabinoid market and second, Bloomios realized that increasing unaccommodated order demand due to production capacity constraints was limiting its ability to grow alongside many of its most significant brand partners.

To address its ability to scale and retain existing clients while also winning additional large volume recurring business, Bloomios undertook a two-phase expansion strategy. Phase one, which commenced last fall and was completed in the second quarter of 2022, included optimization of the production line’s layout and processes, implementation of new software and hardware to enhance customer management and production flow, along with physical upgrades to its manufacturing facility to accommodate the addition of:

Advanced gummy production line which increased our outputs by 250% which when coupled with our legacy machinery achieves a 300% increase of efficiency.
Our automated packaging machinery, which lifts our restrictive hand filling capacity from 5000 jars/day to 30,000 jars/day.

“Phase two, for which more specifics will be announced in the coming weeks, will include the further addition of significant line equipment and personnel at our Daytona Beach production facility we expect to bring online by year end,” said Hill.

The increased capacity now supports more than 80 turnkey products across seven popular format categories, as well as the company's plans to enter new market verticals.

White label service

For brands looking to take advantage of today's booming market in hemp-derived products, Barrett Evans, President & Chief Strategy Officer said partnering with Bloomios is a no-brainer.

“Our regulatory compliance capability, in-house R&D equipment, and experienced staff that spans expert confectioners to PhDs, allow us the ability to easily pivot into any subcategory of the nutraceutical space and tailor the profile of cannabinoid to each client’s needs,” said Evans. “Brands in the traditional supplements space continue to actively extend their footprint into the cannabinoid space to mitigate losing market share to the emerging hemp brands and Bloomios has the certified facilities and know-how to deliver a branded hemp supplement on a private label basis as the go-to third-party manufacturer.

Evans said that in addition to hemp’s common uses to address existing health and wellness issues such as anxiety, pain, and sleep, consumers are turning to cannabinoid products as functional prophylactics for their neuro-protective, cardiovascular support and anti-inflammatory benefits.

“Bloomios strategy is to both meet our end users where they are by addressing existing health and wellness issues while also educating them on additional uses of which they may not yet be aware,” Evans said.
Doug Rohrer, Chief Business Officer, added that he is also seeing cross-over interest from traditional athletic apparel, equipment and fitness brands who could leverage their consumer brand loyalty to extend into the CBD and other minor cannabinoid nutraceutical space while establishing a recurring and scalable revenue stream that keeps their brand front of mind with the consumer on a daily basis.

“As these brands evaluate entry to the hemp nutraceutical space, they face the decision to build a solution in-house through acquiring the knowledge base, building out of production facilities, jumping through the regulatory and certification hurdles and solving for an entirely new supply chain not to mention the time and cost intensive R&D process to arrive at a finished product. This is Bloomios’ core competency and our Private Label solution includes custom formula and format creation under their brand, while our White Label solution provides an even quicker route to market by utilizing any one of our existing proprietary formulas and formats that best aligns with their brand positioning,” explained Rohrer.

Strong growth, market share continue

At the end of the first quarter, Bloomios announced its entry into the sports nutrition and performance market. It has also been actively pursuing potential acquisitions in what it sees as a target-rich M&A environment.
By the third quarter of 2022, the company expects to increase its infused gummy output capacity to exceed more than 1 million gummies per day or a 5x increase in output capacity from current levels.

Bloomios is currently in the process of adding two new stand-alone fully automated filling systems to increase its filling capacity to more than 30,000 containers per day with 10 operators. By the third quarter, it expects to increase its output capacity to more than 45,000 containers daily.

"Given our expanded manufacturing capacity, which extends our ability to rapidly create and launch products into these high growth markets, we continue to see strong growth and market share expansion in 2022,” said Hill.