Alpine 4 Holdings, Inc. (OTCQB:ALPP) said its holding subsidiary, A4 Manufacturing, Inc. has entered the nutraceutical and CBD manufacturing industry with the acquisition of Alternative Labs, LLC (Alt Labs)
The company noted that Alt Labs is an international nutraceutical and CBD private label contract manufacturer located in Southwest Florida. The company specializes in the manufacturing and packaging of liquids, powders, tablets, capsules, and other unique nutritional and CBD products for various international wholesalers and retail entities.
For the last decade, Alt Labs has established itself as a dominant player in the nutraceutical manufacturing market. Its manufacturing facility boasts 70,000 square feet of warehouse and production space and is an innovation center for clients. A client's idea is transformed into a scientific-based formula, expertly flavored, taste-tested, branded and packaged, all under one roof.
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Alt Labs is on a current run rate of roughly $22 million annually and anticipates its annual revenue to grow to $40 million by 2022. This is being generated while operating at only 15% capacity. With the company currently focused on expanding its global market share, there is ample room to accommodate new and exciting customers, Alpine 4 said.
Alpine 4 said Alt Labs will fall under the Stabilizer category of its business model. As a Stabilizer, the company has solid revenues with strong gross profit margins. Alt Labs has the ability to shift into the Facilitator category as it pertains to manufacturing techniques.
In a statement, Kent B. Wilson, CEO, commented: "Since we acquired our first contract manufacturer, Quality Circuit Assembly, Inc. in 2016, we have been on the hunt for our next big manufacturing company to add to the Alpine 4 family of companies. In September 2020, when I first met the team at Alternative Labs, I knew they would fit perfectly into our A4 Manufacturing, Inc. holdings portfolio. Alternative Labs routinely generates $20 million-plus in annualized revenue, with gross profit margins that exceed industry standards. When you couple these margins with the fast pace and ever-growing CBD market, Alternative Labs is on the horizon of explosive growth."
Alpine 4 Holdings is a conglomerate that acquires businesses that fit into its disruptive DSF business model of Drivers, Stabilizers, and Facilitators. The company's focus is on how the adaptation of new technologies, even in brick-and-mortar businesses, can drive innovation
Contact the author at jon.hopkins@proactiveinvestors.com