Many people in the past have criticized the algenist line stating that it is an irrelevant, just for show, and that it is not going to matter once production comes online. I tend to agree and given the direction they have been heading with the partnerships it doesn't follow the same pattern as the other oils they are going to be producing... ie. Most all the oils that are made will be wholesaled out to other companies for them to use for the end product.
But if your primary business will be wholesale why go through the trouble to create a in house line of products that will take many more resources to market, advertise, distribute, sell, ect... To get the kinks out... this company makes oil that no other company can reproduce so why would they want to just be the wholesaler? The wholesale business will be what gets them profitable and production at such a level they can supply there highest margin ventures that they choose to undertake... algenist imo is just the first in house product they take from algae to oil to product to shelves to end user. They are a young company and algenist is just the test product for a whole group of szym products that we may see in the future. What they learn from the algenist line will be worth way more then that 100m value i keep seeing thrown arround on this mb.
Any justification that algenist is just for show and will eventually be sold off and szym will just focus on the making of oil and not on the making of products? What do you think they really want to do long term be a retailor or wholesaler? Can they do both?
DJD, I think SZYM can and should do both, especially for lucrative, high margin products and brands (like Algenist). They should simply spin off their retail unit. Nothing wrong with being vertically integrated. Sure, there will be an issue of competing with your wholesale customers, but who cares? They could possibly partner with large distributors for their retail products like they did with Algenist, which would take care of marketing costs.
Do not underestimate the "vanity" oil. It's totally unique and they make their highest margin there, it has real value and IT has helped greatly before these commodity partnerships. Important here is the knowledge that medicines and industrial oils are possible too.