420observer conducted a wide ranging interview with Linkreservations Inc (OTC: LRSV) CEO where he discussed a number of different topics. Below is the transcript of the interview.
LinkResPet brand and products
- Tell us about LinkResPet
Of course. LinkResPet is a subsidiary of LinkReservations Inc, a CBD Petcare provider. Ee offer cannabidiol (CBD) products tailored specifically to cats, dogs and now horses. Our focus has always been improving the health and life conditions of pets worldwide and we believe CBD holds the key to improving and alleviating animal ailments.
- What is the product and what is the price point?
The products are small glass bottles containing a hemp derived CBD isolate non-toxic, all natural and high quality CBD oil, isolated from all other compounds in the hemp plant. Our products are all lab tested, THC and GMO free, and filtered to eliminate any plant and wax material – ensuring the highest quality standard.
The price point varies. The cats and dogs solutions are currently valued at $49.95 a bottle and the horse one, being a stronger formula costs $99.00, but we have offers for customers who buy more than one bottle at a time and currently we also have a sale going on.
We are also launching LYNKS: CBD Pet water, which is a product created with our JV partner American Premium Water Corp.
- Please give us an overview of the product line.
Sure, at the moment we have three products which target the overall health and wellness of our three key animal groups: dogs, cats and horses. Each animal has a specific product catered to it as the strength varies from animal to animal – for example horses, which is our newest animal group, are a lot bigger than humans, cats or dogs so it makes sense that their solutions are stronger, in order to make the dosage efficacious.
All our products are in tincture (liquid) form, providing an easy way to give the formula to the animal either it directly in the mouth or in their food or water.
We are constantly working on new products though so I expect our product line to grow as we cement ourselves in the market.
- What are your new products in the making?
A project we are looking at is developing functional foods for pets, or foods that have a strong positive impact on pets’ health. You might know them as superfoods – they’ve been incredibly popular in the human supplement sector.
Pet owners might approach CBD with a specific desire for their pets’ health, so we are looking at different foods/supplements that beyond helping overall wellness also target distinct areas. Be it pets suffering from obesity or anxiety, the idea is to have a CBD based supplements stacked with other health ingredients that aid in the recovery and processes in the pet’s body.
- You mentioned you make products for horses too, why horses?
Yes, we recently launched our LinkResPet CBD product for horses, which is very exciting! We are keen to extend the power of CBD to treat as many pets as possible, and horses is a strong group in the US and Europe. They are very expensive animals and a lot of effort goes into them, they also have similar health issues as cats and dogs, but potentially on a bigger scale so we believe that our products would definitely benefit them.
The need for a new product comes from the fact that they are a big animal. Our solutions are tailored with the right strength for the animal. So with horses for example, they are a lot bigger than humans, cats or dogs so it makes sense that their solutions are stronger. The dosage needs to be efficacious, which means using cat, dog or even human products would not be advisable.
- What are your key milestones in the next 6-12 months
In terms of key milestones for the next 12 months we are focused on 4 activities:
- Firstly, we want to establish our presence in the US via retailing activity and marketing
- Secondly, we want to start bringing in more revenue and profits for the company by driving sales. Something that is already underway.
- Our third milestone would be to open up activities in Europe, potentially the UK and Germany
- And finally, we want to develop an advanced range of products such as CBD-based functionals foods and nutraceuticals
- What is your vision for the next couple of years?
I think the next couple of years will bring a lot of growth for the company. Just launching and starting operations in the US has been a big goal for us but now we have to focus on revenue streams and consolidating our presence in the market. We are also setting our sights on Europe, which although it is a smaller market it is a very strong one in natural supplements.
If we are aiming for something for the next two years it is with the ultimate goal to have established ourselves in our key markets as a serious competitors with a strong product line that benefits animals.
- HIPH joint venture – what is it?
This came about through natural synergies really, they were looking to enter the pet market and we were looking for an innovative way to treat animals. By combining our LinkResPet CBD formula with LALPINA’s hydro nanotechnology, we came up with LYNKS: CBD Pet Water, a new and innovative way to deliver powerful CBD properties to pets. Of course, partnering with American Premium Water Corp is a huge step for us as we will be co-branding our new product with LALPINA CBD. This definitely raises our profile and recognition for our brand and our CBD pet products, and in a way also reassures our customers of our quality and trustworthiness when treating their pets. The product is meant to launch in Q3 of 2019, so we are really excited about that!
- HIPH marketing who is doing it?
Well we are both pitching in in terms of the marketing of the products, as the beverage bottle will include both brands. Both companies will be doing a fair share of marketing as this is a new revenue stream for both and we are looking for captive audiences in each other’s following.
The technology aspect will then be carried out mainly by American Premium, as they lend their hydro-nano formulation to manufacture the product. Meanwhile we will handle the logistics and distribution aspect.
Distribution and Sales
- Are you still in the pre-revenue stage or have you been able to start bringing in revenue at this moment.
At the moment, we are seeing revenue starting to come in through the online product sales on our website, so we are moving past the pre-revenue stage. Also, in a bid to expand our retailer base for product sales, we are having conversations with major retailers and seeking available opportunities across the pet care and CBD markets. The aim is to improve our product visibility and accessibility across our customers’ favourite retailers, which in turn will help boost sales and strengthen awareness in our products as well as brand recognition.
- You are based in the UK, but your products are being sold in the US, why?
Yes, we are based in the UK but trade on the US market. North America is pulling ahead in terms of legislation and it is a good time to enter, it is also the biggest market, so we decided to launch there first. We were lucky enough to find a very good manufacturer in the US, which kickstarted production quickly after the agreement and they also manage the fulfilment of orders so it allows us to move quickly while focusing mainly on the branding and customer service.
We will be looking to eventually open in the European market as well but the US was the big fish for us and definitely the place where we CBD gaining most momentum.
- Brick and mortar – what is the distribution strategy?
At the moment we are exploring different opportunities with brick and mortar shops. Our key targets are pet shops, grocery stores and hopefully soon enough veterinarians. However our main focus at the moment is really in boosting traffic through our ecommerce site and
- You launched an online shop, why ecommerce at the moment?
Have you seen how many people are shopping online? On their mobile phones? Ecommerce is quite strong at the moment, it is growing to be the preferred means of shopping, particularly by young generations, so it is important that we have a foothold on that space. It is also a good choice to start with, as the costs of running are quite small compared to brick and mortar and it allows us to have a space where we can share information and new launches, before going wholesale.
- What are the opportunities for pet health market?
Well, the opportunities for the pet CBD market in particular are huge. For starters, people are spending more and more on their pets in general – in 2018 that was about $72.5 billion. When you think that about 40% of that goes to their health and vet visits you are talking about a pet health market worth around $29 billion. Now, CBD is just starting out as a health option for pet owners, I think it was worth about $13 million in 2017 but it is expected to grow to $125 million in 2022. That is almost a growth of 10 times in 5 years, so we are very positive about the opportunities that the market has to keep growing.
- Is the CBD market in Europe different than in the US?
Well for starters, the European market has been slower to develop than the US, which has had an explosive start since legislation was passed. CBD is legal in most countries in Europe, but mainly in topical form and not ingestible which proves a challenge. Individual country regulations around CBD have also meant that the growth and development in the are has been incremental. But it’s definitely not sluggish, in fact the European CBD market is expected to be worth $416 million by the end of 2019, which provides great opportunities!
Europe as a CBD market is quite fitting given the views of their consumers. We find European customers tend to be quite knowledgeable and receptive of holistic therapies, particularly in countries like Germany and the UK, and more importantly, absolutely devoted to their pets. It is definitely a key market for us, so we are looking at the regulation aspect
CBD and health
- What is CBD and how does it work?
CBD or Cannabidiol is the non-psychoactive, non-toxic compound found in cannabis plants. So CBD won’t make your pet high or have any lethal effects like THC – the psychoactive compound – does. In fact, our CBD products are based on CBD oil that has near zero THC levels so it’s completely safe to use.
CBD works on pets in a similar way that it does with humans, all mammals have an endocannabinoid system (ECS) which promotes homeostasis in the body. In summary, when CBD enters the system, it attaches to specific ECS receptors and help regulate physiological processes, such as appetite, pain and inflammation and even anxiety. So imagine old dogs with hip dysplasia, cats dealing with anxiety or horses with muscle soreness… their symptoms and health issues could be improved within a couple of weeks just by using CBD.
- Is LinkResPet/CBD a natural alternative for existing treatments or is it a new form of treatment?
Well CBD is certainly coming up as a new way of treating animal ailments, but is by no means an alternative to prescribed medications for existing conditions so I am not going to encourage people to go against what their vet prescribes. However, there have been studies on pets that show how CBD help animals manage pain and anxiety better and actually improves symptoms. Although most evidence is anecdotal, there are some clinical studies taking place that focus particularly on arthritis and epilepsy so hopefully soon enough we will have more clinical data supporting CBD as a strong and natural option for pet owners.
- Can CBD product alleviate anxiety in dogs and cats
I believe it absolutely can. Think about the CBD uses on humans at the moment, there have been numerous animal studies, and accumulating evidence from human experimental, clinical, and epidemiological studies suggest CBD has powerful anti-anxiety properties. Administered as needed, it appears safe, well-tolerated, and may be beneficial to treat a number of anxiety-related disorders, such as panic disorder, social phobia, mild to moderate depression, and post-traumatic stress disorder.
If it works on humans, and it is safe for pets to use, why shouldn’t it alleviate anxiety in dogs and cats? Yes, we lack clinical studies and vets are wary of the legal implications, but the reality is thousands of pet owners are already using CBD on their pets precisely because of its anti-anxiety benefits and it certainly seems to be helping! Now this is not a pill, it is not going to calm the animal immediately, CBD needs to build up on the system over time and it can be a slow process but it can definitely help relax pets in a 100% natural way.
- What benefits does CBD provide for pets?
CBD has a variety of properties that help several functions in the body. It has anti-inflammatory properties, which helps with swelling and pain, improving muscle and joint mobility. It is also a powerful antiemetic, meaning it works on encouraging appetite of the pet – it can help control nausea and prevent vomiting.
Additionally CBD has anticonvulsant and anxiolytic properties. This means it helps reduce tics, spasms and seizures while also relieving stress. So if anything, CBD can help improve some symptoms and their overall health within a few weeks of using a completely natural product.
- Why CBD and the holistic approach for pets? Why not use the same products than humans?
For years we have been focused on pharmaceuticals and traditional medicine without thinking of the effects these might have on the body of our pets. As human medicine looks at alternative and holistic options the same trend is being seen in pets. You can now find people giving their dogs acupuncture or horses aromatherapy. CBD is gaining momentum as a natural therapy, and by targeting several conditions it is becoming the bread and butter in the sector, and a great opportunity for us.
The reason why our products are tailored for pets is mainly because of the dosage and strength in each formula. Quality wise our products are the same as humans, in fact they could be consumed by humans – I have been thinking of trying them myself! The difference is that a person will probably find the amount in our products too small to be efficacious – or too large in the case of horse products.
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