Bloomios expands production capacity by 300%, setting stage for strong growth in 2022
Bloomios, Inc. (OTCQB: BLMS), a leading hemp and nutraceutical manufacturer specializing in full service product development, R&D and compliance solutions, has completed a major expansion of the company's manufacturing and fulfillment systems at its new state-of-the-art 50,000 sf. manufacturing facility in Daytona Beach, Florida.
The expansion increased manufacturing and fulfillment capacity by approximately 300%, as well as lowered operating expense. It now supports more than 80 turnkey products across seven popular format categories, as well as the company's plans to enter new market verticals.
Bloomios estimates the new equipment has increased overall capacity by about 300%, while enabling many process improvements. 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.
"Our first quarter was a transitional period where we completed the first phase of our expansion and retooling of our manufacturing facility in preparation for strong growth this year," stated Bloomios CEO, Michael Hill.
"While the downtime resulted in lower revenues in the recent period, we anticipate making up for this substantially over the coming quarters as we bring our greater manufacturing capabilities online."
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.
"We do not see these additions requiring any further downtime or affecting our current output," noted Hill.
"In fact, we are already seeing our strengthened production capacity and greater efficiencies positively affecting our revenue and gross margins. These improvements and Bloomios' one-stop 'concept-to-creation' suite of capabilities make us the ideal turnkey solution provider for brands looking to take advantage of today's booming market in hemp-derived products."
Near the end of the first quarter, Bloomios announced its entry into the fast-growing sports nutrition and performance market. It has also been actively pursuing potential acquisitions in what it sees as a target-rich M&A environment.
Bloomios is addressing a North American CBD market that is projected to grow at a 33% CAGR to reach $61.3 billion by 2027. The market for alternative cannabinoids is also growing fast at a 20% CAGR, and is expected to hit $26.2 billion by 2028.
Hill concluded: "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."