NetworkNewsWire
Editorial Coverage: Realizing the connection between nutrition
and mental health, companies from all sectors of the health and
wellness realm are expanding their efforts to offer products that
effectively enhance consumers’ well-being — including
nutraceuticals and functional products that tap into the power of
mushrooms.
Champignon Brands Inc. (CSE: SHRM) (OTC: SHRMF) (FWB:
496) (SHRM
Profile) is one of the innovators in this field,
expanding through acquisitions and outside funding to support
R&D and a growing product line focused on artisanal medical
mushroom formulations and mushroom-infused functional beverage
CPGs. The company’s emphasis on nutraceuticals’ role in both mental
and physical health is resonant with the strategy of The
Unilever Group (NYSE: UL), a company working to attain the
highest nutritional standards for its fleet of products and
recognizing its consumers’ need for nutritional products that
positively impact their health. Mind Medicine (Mind Med)
Inc. (NEO: MMED) (OTC: MMEDF) is a company focused on
discovering, developing, and deploying psychedelic-inspired
medicines—using compounds from mushrooms or LSD—in an effort to
mitigate consumer suffering and improve overall health. As society
warms to the idea of mushroom-infused teas and coffees,
Starbucks Corp. (NASDAQ: SBUX), a frequent
innovator in the food and beverage space, may soon be serving
functional beverages alongside the worldwide favorite, coffee.
Longtime champion of the benefits of plant-based protein,
Beyond Meat Inc. (NASDAQ: BYND) is in step with
society’s increasing interest in getting more nutritional bang for
its dietary buck.
- Psychedelic mushrooms’ active ingredient, psilocybin, shows
potential to alleviate serious illnesses such as depression
- As prominent investors commit to R&D, society’s general
understanding of the chemical’s potential is growing
- As consumers learn more about the humble fungi’s benefits, more
doors are opening to allow mushroom-focused companies increased
market opportunities
To view an infographic of this editorial, click here.
Health-Conscious Consumers Consider
‘Shrooms
The expansion of the functional food and drinks sector has
created a new opportunity. While cannabis and CBD have taken these
consumables beyond the traditional active ingredients of alcohol
and caffeine, this diversification of the market has opened up
consumers to new possibilities. Among those possibilities is the
use of natural ingredients found in mushrooms.
For decades, these mushrooms have played a part in alternative
culture—a subversive option for those looking to expand their
minds. However, a better understanding of mushrooms and safe
techniques to process them have made other options become
available. Researchers are exploring how the psycho-active
ingredient derived from mushrooms—psilocybin—could be safely used
in health products and associated delivery platforms. Companies are
emerging to take those promising new products to market.
Mushroom-Infused Tea as Entry Point
One of the leaders in the move to bring mushroom-infused
wellness products to market is Champignon
Brands Inc. (CSE: SHRM) (OTC: SHRMF) (FWB: 496). A
rare public company built around a mushroom-to-market strategy,
Champignon is leveraging the growing functional beverages market as
well as breakthrough medicinal therapy involving psilocybin and
MDMA-based delivery platforms. Champignon’s Vitality Teas brand
offers a range of teas infused with ingredients derived from the
most desirable artisanal medical mushrooms – Reishi, Chaga and
Lion’s Mane. This unique line of teas offers an entry point both
for consumers and investors, providing an ideal opportunity for
people to experience the health effect of mushrooms in a safe,
familiar product, while allowing investors to participate in the
mushroom market.
This is new territory, perfect for the flexibility and
innovation that come with a young company. Champignon’s strategy
involves cultivating and distributing artisanal medical mushrooms
and products derived from them, while maintaining control of its
whole product chain. The company is laying the groundwork for what
could become a significant new industry.
As a step towards both funding and legitimizing its work,
Champignon is working its way onto the world’s stock markets. SHRM
began trading in Canada in February and is now
in the process of securing listings in the United States and
Germany, which would give the company access to significant new
markets and investor bases.
Psilocybin – Mushrooms’ Powerhouse
Ingredient
The health-bringing potential of mushrooms stems from one
chemical — psilocybin. The psychedelic molecule found in most
psychoactive mushrooms, psilocybin is a naturally occurring,
mind-altering substance that humans have made use of in religious
and cultural ceremonies for centuries. While the effect of this
specific chemical has been known for decades, its medical potential
is only now starting to be recognized and explored.
A main possibility for the products of companies such as
Champignon lies in treating challenging mental-health issues.
Post-traumatic stress disorder (PTSD) and treatment-resistant
depression (TRD) are widely recognized as serious issues affecting
thousands of people on a daily basis. Depression costs an estimated $210.5 billion per year, and this
has created an antidepressant drugs market valued at $13.69 billion
in 2018, which is expected to expand to $15.88
billion by 2025. An article in The Journal of
Clinical Psychiatry estimates the cost to employers of TRD
alone at $48 billion per year.
Treatment of these illnesses can be challenging, and any
medicine with potential to help will be welcomed by a huge raft of
patients and practitioners. Research shows that psilocybin has
potential to help with these disorders, and now both the medical
profession and the markets are responding.
High-profile investors such as Peter Thiel, Tim Ferriss, Kevin
O’Leary and Canopy Growth’s ex-CEO Bruce Linton are all taking an
interest. Linton and O’Leary have become seed investors in MindMed, which develops medicines
based on psychedelics. Thiel is an early investor
in mental health care Compass Pathways, which makes use of
psilocybin. Ferriss has been a leader in
fundraising for the new Johns Hopkins psychedelic research
center.
With mental health high on the world’s agenda and more companies
opening the door to psilocybin, the likes of Champignon have a
legitimacy and level of investor interest that would have been
unimaginable a decade ago.
Emerging Mushroom Company Commits to
R&D
There are no safe shortcuts when dealing with psychoactive
chemicals, and so a great deal of R&D work is needed to bring
mushroom-derived health products to market. That’s reflected in the
focus of companies entering this market as well as the academic
institutions taking an interest.
Champignon has established a dedicated R&D laboratory. The
facility will work on three distinct but connected issues around
psilocybin and mushrooms:
- How to integrate mushroom extracts as an alternative-medicine
delivery system
- Formulating bioactive compounds extracted from plants and
fungi
- Isolating and synthesizing certain plant and fungi
extracts
The overall goal of this work is to research and distribute
premium, medicinal, mushrooms-infused products that can be used to
target high-margin markets as well as consumers open to the health
and wellness benefits of mushrooms.
Getting this work right takes specialist expertise and
oversight. To this end, Champignon is forming a special advisory
committee to oversee its R&D. With members drawn from fields
such as medicine, psychology, mycology, and pharmacology, the board
will carefully evaluate the potential effects of its
medicinal-mushroom formulations and the accompanying benefits in
treating disorders such as depression, PTSD, and substance and
alcohol abuse. Through these skilled and experienced specialists,
the company will bolster the effectiveness and scientific validity
of its work, providing reassurance to both customers and
investors.
Retail and Acquisition Strategy
While R&D will provide mushroom companies with powerful new
products, that alone isn’t enough to ensure their viability. For
that, they’ll need to pair innovative products with sound business
strategy.
Which strategies each company follows will depend upon their
individual circumstances and leadership. For Champignon,
acquisitions are playing a part. The company recently
announced that it has entered into an agreement to acquire
Artisan Growers Ltd., a craft-mushroom cultivator and supplier.
Artisan Growers operates a mushroom facility cultivating a variety
of organic craft mushrooms. This facility will be integrated into
Champignon’s mushroom manufacturing, formulation and distribution
infrastructure to expand and strengthen SHRM’s supply chain.
In taking this supply chain to consumers, Champignon has
developed a retail strategy that aims to revolutionize the $200
billion functional foods and beverages sector by introducing
exceptionally formulated mushroom-infused products. A combination
of brick and mortar distribution, e-commerce sales and online
influencer marketing is being used to quickly develop a retail base
for the company’s novel products.
To further expand its alternative medicine product range,
Champignon recently announced the acquisition of
Novo Formulations Ltd., whose manufacturing partner is capable
of processing proprietary delivery systems in its
40,000-square-foot, GMP-certified, Health Canada-approved and
Federal Drug Administration-approved manufacturing facility.
According to the announcement, Champignon plans to leverage
Novoformulations' existing product development infrastructure and
licensed affiliates to pursue psilocybin and MDMA-based
formulations, with the objective of developing and commercializing
rapid onset treatments capable of improving health outcomes,
including depression, PTSD, and substance and alcohol use
disorders. The current marketplace for pharmacologic DPS treatments
in North America exceeds $10 billion annually.
Providing Healthy Products
The Unilever Group (NYSE: UL) continues to
demand the highest degree of nutritional excellence from its brands
and products. Unilever is the owner of Lipton Teas, a company which
has long recognized tea’s benefits in relieving stress and
improving overall well-being. Proud of its heritage but
not afraid to
innovate, Unilever continues to assess every brand and product
against its Highest
Nutritional Standards and continues to offer more plant-based
ingredients in its products.
Mind Medicine (Mind Med) Inc. (NEO: MMED) (OTC:
MMEDF) has been investigating potential medical uses of
psychedelics to ultimately create mainstream medication for
neuro-psychiatric health issues. The company is striving to create
a new way to address mental health problems. Through human clinical
trials, Mind Med seeks to develop innovative psychedelic-inspired
medicines to cure a range of
issues, including addiction, depression, and ADHD, among
others.
As the world ponders whether mushroom-infused coffee harbors untapped
health benefits, Starbucks Corp. (NASDAQ:
SBUX) is well positioned as a longtime
innovator in the food and beverage space. Since drip coffee is
considered a worldwide staple of many consumers’ daily lives, a
line of functional beverages could be in the company’s future.
Longtime champion of the benefits of plant-based protein,
Beyond Meat Inc. (NASDAQ: BYND) is in step with
society’s increasing interest in getting better nutrition out of
what they feed their bodies. Beyond Meat continues to realize the
benefits of health, sustainability, and animal welfare through
its innovative line of products. The company believes its strategy
effectively addresses four critically important and ever-increasing
global issues: human health, climate change, limitations on natural
resources, and animal welfare.
As research continues to unveil the hidden health benefits of
artisanal medical mushrooms, a raft of new treatments could soon be
on its way.
For more information on Champignon Brands, visit Champignon
Brands Inc. (CSE: SHRM) (OTC: SHRMF) (FWB:496)
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Champignon Brands (CSE:SHRM)
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Champignon Brands (CSE:SHRM)
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