1 00:00:03,540 --> 00:00:06,800 Adam Lang: Welcome to the Fear and Greed Daily Interview. I'm Adam Lang. 2 00:00:07,230 --> 00:00:10,470 Adam Lang: We've covered plenty of sectors and plenty of industries on 3 00:00:10,470 --> 00:00:12,990 Adam Lang: Fear and Greed. In our time so far, we've done 4 00:00:12,990 --> 00:00:16,500 Adam Lang: hundreds of interviews, but I can say with absolute certainty 5 00:00:16,800 --> 00:00:19,350 Adam Lang: that we've never taken a close look at the subject 6 00:00:19,350 --> 00:00:24,360 Adam Lang: of today's interview. Elixinol Wellness is an ASX listed company that 7 00:00:24,360 --> 00:00:28,229 Adam Lang: makes and sells products from hemp. The Australian company has 8 00:00:28,230 --> 00:00:32,550 Adam Lang: been operating for almost 30 years and has since gone global. Oliver Horn is the CEO of Elixinol Wellness, 9 00:00:35,670 --> 00:00:40,260 Adam Lang: having worked previously at international brands including L'Oreal, Swisse Wellness 10 00:00:40,260 --> 00:00:43,890 Adam Lang: and Treasury Wine Estates. Oliver, welcome to Fear and Greed. 11 00:00:44,310 --> 00:00:45,730 Oliver Horn: Thank you, Adam. It's good to be here. 12 00:00:46,050 --> 00:00:48,840 Adam Lang: Let's make it clear from the outset, Oliver, this isn't 13 00:00:48,840 --> 00:00:52,530 Adam Lang: about cannabis. How do the hemp products that you make differ 14 00:00:52,530 --> 00:00:53,670 Adam Lang: from the illegal drug? 15 00:00:54,090 --> 00:00:56,520 Oliver Horn: That's absolutely right. We are not in the business of 16 00:00:56,520 --> 00:00:59,550 Oliver Horn: illegal drugs at all. We are a publicly listed company and 17 00:00:59,550 --> 00:01:02,220 Oliver Horn: we produce really two kinds of products and they are 18 00:01:02,220 --> 00:01:05,610 Oliver Horn: all derived from the hemp plant. So the one part 19 00:01:05,610 --> 00:01:09,930 Oliver Horn: of our portfolio is CBD or this is an acronym 20 00:01:09,930 --> 00:01:13,560 Oliver Horn: for cannabidiol. And that is really a compound found in 21 00:01:13,560 --> 00:01:16,860 Oliver Horn: the hemp plant, which is highly medicinal in its nature 22 00:01:16,860 --> 00:01:21,630 Oliver Horn: and has very many medicinal applications. And it's low in THC, 23 00:01:21,630 --> 00:01:25,950 Oliver Horn: which is stands for Tetrahydrocannabinol, and that is a compound 24 00:01:25,950 --> 00:01:28,530 Oliver Horn: that usually gets you high and that's what you find 25 00:01:28,530 --> 00:01:30,690 Oliver Horn: a lot of times in illegal drugs. So our products 26 00:01:30,690 --> 00:01:33,450 Oliver Horn: are hemp based low in THC, so it doesn't get 27 00:01:33,450 --> 00:01:37,230 Oliver Horn: you high but high in CBD and those are the 28 00:01:37,260 --> 00:01:41,730 Oliver Horn: compounds that really have huge medicinal positive impacts. The second 29 00:01:41,730 --> 00:01:44,670 Oliver Horn: part of our business is really our hemp foods business. Again, 30 00:01:44,670 --> 00:01:47,790 Oliver Horn: from the hemp plant and hemp plant in itself is 31 00:01:47,790 --> 00:01:51,360 Oliver Horn: a highly sustainable product in itself. It's a great carbon trap. 32 00:01:51,600 --> 00:01:54,480 Oliver Horn: It's very sustainable in terms of how you grow it 33 00:01:54,480 --> 00:01:57,720 Oliver Horn: throughout various seasons throughout the year, it's low in use 34 00:01:57,720 --> 00:02:01,170 Oliver Horn: of water, doesn't need any pesticides or herbicides. So it's 35 00:02:01,170 --> 00:02:03,270 Oliver Horn: very easy to grow crops very quickly and is a 36 00:02:03,270 --> 00:02:06,000 Oliver Horn: superfood in itself. And so we are harnessing that hemp 37 00:02:06,000 --> 00:02:09,899 Oliver Horn: plant to produce foods and those medicinal cannabis products. 38 00:02:10,500 --> 00:02:13,290 Adam Lang: So it really is an incredible plant in many ways. 39 00:02:13,290 --> 00:02:16,920 Adam Lang: And bar the sort of illegal aspects of it, there's so 40 00:02:16,919 --> 00:02:20,430 Adam Lang: much good that can come from it. When you're marketing 41 00:02:20,430 --> 00:02:23,670 Adam Lang: your products and even dealing with investors, how hard is 42 00:02:23,669 --> 00:02:27,390 Adam Lang: it to distance yourself from the stigma and any misconceptions? 43 00:02:27,870 --> 00:02:30,750 Oliver Horn: It's taken a number of years to shed the stigma 44 00:02:30,750 --> 00:02:34,650 Oliver Horn: that still exists around cannabis because people do it associated 45 00:02:34,919 --> 00:02:38,250 Oliver Horn: with illegal activities by and large. But I must say, 46 00:02:38,250 --> 00:02:40,590 Oliver Horn: over the last couple of years, with regulation changes and investors 47 00:02:41,130 --> 00:02:45,929 Oliver Horn: becoming increasingly sophisticated and more and more public listed companies 48 00:02:45,930 --> 00:02:49,200 Oliver Horn: operating in that space, this is really not an issue 49 00:02:49,200 --> 00:02:52,260 Oliver Horn: anymore at this stage. However, what is an issue a 50 00:02:52,260 --> 00:02:55,230 Oliver Horn: lot of times is the regulatory environment that companies like 51 00:02:55,230 --> 00:02:58,240 Oliver Horn: ours operate in because it's still a very new industry, 52 00:02:58,240 --> 00:03:01,590 Oliver Horn: a new market with regulations changing all the time and 53 00:03:01,590 --> 00:03:04,950 Oliver Horn: being very complex and varied across the globe. And that's 54 00:03:04,950 --> 00:03:07,320 Oliver Horn: where we spend the most time on with our investors 55 00:03:07,590 --> 00:03:10,530 Oliver Horn: to talk about how those regulation changes because that has 56 00:03:10,530 --> 00:03:12,840 Oliver Horn: really set the scene for us on how we can 57 00:03:12,840 --> 00:03:17,639 Oliver Horn: operate in various jurisdictions. And that's probably now currently the 58 00:03:17,639 --> 00:03:19,859 Oliver Horn: major topic that we are addressing. 59 00:03:20,639 --> 00:03:23,490 Adam Lang: Okay. It's great that we've made progress. It's also interesting that 60 00:03:23,760 --> 00:03:27,390 Adam Lang: sometimes the heritage and the law around our different products, 61 00:03:27,389 --> 00:03:30,240 Adam Lang: such as alcohol, possibly easier to start up a gin 62 00:03:30,240 --> 00:03:34,020 Adam Lang: distillery than it is to start a legitimate hemp plantation 63 00:03:34,020 --> 00:03:38,220 Adam Lang: and produce it for commercial use. How big is the hemp 64 00:03:38,220 --> 00:03:40,590 Adam Lang: industry in Australia and globally? 65 00:03:41,140 --> 00:03:44,760 Oliver Horn: Look, there's various sources and it's incredibly fast growing and 66 00:03:44,760 --> 00:03:47,670 Oliver Horn: it's getting very, very big. Global CBD, I call it 67 00:03:47,670 --> 00:03:50,280 Oliver Horn: medicinal cannabis for lack of a better word, here is 68 00:03:50,280 --> 00:03:53,820 Oliver Horn: estimated to be around six billion US dollars and growing 69 00:03:53,820 --> 00:03:57,030 Oliver Horn: at around 16 per cent year on year. So very significant 70 00:03:57,030 --> 00:04:00,390 Oliver Horn: growth that we're seeing. Here in Australia, at home, the 71 00:04:00,390 --> 00:04:04,620 Oliver Horn: legal cannabis market is estimated to be around 240 million 72 00:04:04,770 --> 00:04:07,380 Oliver Horn: US dollars and growing at a whopping sort of forty 73 00:04:07,380 --> 00:04:10,050 Oliver Horn: six per cent. So it's a high growth market as well. 74 00:04:10,050 --> 00:04:12,780 Oliver Horn: But really, what brings it to the fore? How high 75 00:04:12,780 --> 00:04:16,289 Oliver Horn: growth and how in demand those medicinal cannabis products are is 76 00:04:16,470 --> 00:04:19,680 Oliver Horn: the number of prescriptions that are approved by the TGA (Therapeutic Goods Administration) 77 00:04:19,680 --> 00:04:22,710 Oliver Horn: here in Australia. And currently there are around ten thousand prescriptions 78 00:04:22,710 --> 00:04:25,680 Oliver Horn: every month that are being approved by the TGA for 79 00:04:25,680 --> 00:04:29,520 Oliver Horn: patients in need. And this is just the legal market, 80 00:04:29,520 --> 00:04:33,060 Oliver Horn: those 240 million US dollars. We believe that there's probably 81 00:04:33,060 --> 00:04:37,440 Oliver Horn: an illegal market from individuals and patients buying online from 82 00:04:37,440 --> 00:04:41,010 Oliver Horn: overseas websites that are shipping directly to Australia and that 83 00:04:41,010 --> 00:04:44,490 Oliver Horn: market is probably five times bigger than we're seeing here in legal markets. 84 00:04:44,490 --> 00:04:48,390 Oliver Horn: So a huge consumer demand, really, high growth and already very, 85 00:04:48,390 --> 00:04:49,170 Oliver Horn: very sizeable. 86 00:04:49,830 --> 00:04:52,590 Adam Lang: So I guess let's look at those two different categories. 87 00:04:52,589 --> 00:04:55,140 Adam Lang: You've got the medicinal side and the food based side 88 00:04:55,470 --> 00:05:00,510 Adam Lang: and Elixinol Wellness is part in that growing industry. What is 89 00:05:00,510 --> 00:05:04,140 Adam Lang: your company's disposition in terms of your balance of medicinal and 90 00:05:04,140 --> 00:05:05,190 Adam Lang: food products? 91 00:05:05,790 --> 00:05:08,549 Oliver Horn: We have a pretty balanced portfolio. For us, Hemp Foods 92 00:05:08,550 --> 00:05:12,510 Oliver Horn: Australia is really our base in Australia, which is currently 93 00:05:12,510 --> 00:05:15,390 Oliver Horn: contributing to around 40 per cent of our revenues at a 94 00:05:15,390 --> 00:05:17,850 Oliver Horn: break even level. So it's a profitable business, very well 95 00:05:17,850 --> 00:05:20,730 Oliver Horn: established and with a strong growth trajectory. And the other 96 00:05:20,730 --> 00:05:23,650 Oliver Horn: 60 per cent for us are really in the medicinal cannabis 97 00:05:23,650 --> 00:05:27,390 Oliver Horn: space but with revenues really generated outside of Australia at 98 00:05:27,390 --> 00:05:30,539 Oliver Horn: this stage, still, with a majority of those revenues coming 99 00:05:30,540 --> 00:05:33,480 Oliver Horn: from the US market, really, where we have an operation 100 00:05:33,540 --> 00:05:35,820 Oliver Horn: for the last six, seven years and we've been one 101 00:05:35,820 --> 00:05:38,920 Oliver Horn: of the pioneers there, one of the most established brands, we're 102 00:05:39,000 --> 00:05:42,090 Oliver Horn: having a really good footprint and consumer recognition. And so 103 00:05:42,270 --> 00:05:46,110 Oliver Horn: think about us as 60 per cent, medicinal cannabis, 40 per cent 104 00:05:46,110 --> 00:05:48,500 Oliver Horn: hemp foods based here out of Australia. 105 00:05:48,810 --> 00:05:53,790 Adam Lang: Great. Okay, so this month you've started importing CBD oil 106 00:05:53,790 --> 00:05:58,440 Adam Lang: products under the Therapeutic Goods Administration Special Access Scheme. Who 107 00:05:58,440 --> 00:06:00,820 Adam Lang: benefits from that in terms of the consumers? 108 00:06:01,290 --> 00:06:05,010 Oliver Horn: Yes, we've struck a distribution agreement with Health House International, also a 109 00:06:05,100 --> 00:06:07,800 Oliver Horn: publicly listed company in Australia, and we're just in the 110 00:06:07,800 --> 00:06:11,099 Oliver Horn: process of actually importing our products. We expect them to 111 00:06:11,100 --> 00:06:13,950 Oliver Horn: be in market within the next eight weeks really. And 112 00:06:13,950 --> 00:06:17,940 Oliver Horn: who really benefits from that is consumers or patients really 113 00:06:17,940 --> 00:06:22,890 Oliver Horn: who are suffering mostly from chronic pain, stress, anxiety or 114 00:06:22,890 --> 00:06:26,280 Oliver Horn: sleep issues. And that's really the typical patient that goes 115 00:06:26,279 --> 00:06:29,880 Oliver Horn: to a specialist prescriber. And that specialist prescriber can then 116 00:06:30,060 --> 00:06:33,710 Oliver Horn: prescribe products that are currently not registered with the TGA. 117 00:06:33,750 --> 00:06:36,750 Oliver Horn: That's why it's called a special access scheme. And that 118 00:06:36,750 --> 00:06:39,779 Oliver Horn: prescriber would identify what the right product is for the 119 00:06:39,779 --> 00:06:43,890 Oliver Horn: patient and prescribe a medicinal cannabis product if he or she 120 00:06:43,890 --> 00:06:46,380 Oliver Horn: thinks that's the right way to go. So that's currently 121 00:06:46,380 --> 00:06:49,589 Oliver Horn: a very limited pathway here in Australia for those patients. 122 00:06:49,589 --> 00:06:52,440 Oliver Horn: And it's still very hard for patients to actually find 123 00:06:52,440 --> 00:06:55,980 Oliver Horn: a prescriber. It's getting more prevalent, but it's still a 124 00:06:55,980 --> 00:06:59,250 Oliver Horn: very nascent sort of industry. But more and more prescribers 125 00:06:59,250 --> 00:07:02,250 Oliver Horn: are coming online now and prescribing CBD products 126 00:07:02,790 --> 00:07:05,669 Adam Lang: And hopefully it makes a very meaningful difference for those 127 00:07:05,670 --> 00:07:09,870 Adam Lang: people that can receive it. What does a change like this, 128 00:07:09,870 --> 00:07:11,280 Adam Lang: what does it mean for the company? 129 00:07:12,040 --> 00:07:15,450 Oliver Horn: Look, we've been in the CBD space for a number 130 00:07:15,450 --> 00:07:17,970 Oliver Horn: of years now. And for us to be coming here 131 00:07:17,970 --> 00:07:21,390 Oliver Horn: to Australia into our home market, really with CBD products 132 00:07:21,390 --> 00:07:23,429 Oliver Horn: is just a natural evolution of our company. We have 133 00:07:23,430 --> 00:07:25,620 Oliver Horn: a really good footprint with Hemp Foods Australia. We have a good 134 00:07:25,620 --> 00:07:27,900 Oliver Horn: team. We have our corporate offices here, and so we can 135 00:07:27,900 --> 00:07:30,690 Oliver Horn: leverage all those resources to bring our products to market. 136 00:07:30,690 --> 00:07:32,250 Oliver Horn: And what that means for us now is that we 137 00:07:32,250 --> 00:07:36,120 Oliver Horn: are developing a route to market through medical and medicinal 138 00:07:36,120 --> 00:07:39,960 Oliver Horn: prescribers and with Health House to then really access and 139 00:07:39,960 --> 00:07:44,010 Oliver Horn: provide patients with safe and effective product solutions. And given 140 00:07:44,010 --> 00:07:46,560 Oliver Horn: our history and our credentials here, I think we have 141 00:07:46,560 --> 00:07:49,410 Oliver Horn: a really good opportunity to play. But I think we're 142 00:07:49,410 --> 00:07:52,020 Oliver Horn: also very realistic that the Australian market is still a 143 00:07:52,020 --> 00:07:54,390 Oliver Horn: very small market in terms of its consumer base, and 144 00:07:54,390 --> 00:07:58,260 Oliver Horn: our key priorities are really still in the US market. 145 00:07:58,260 --> 00:08:00,900 Oliver Horn: And just purely because of the size of the consumer 146 00:08:00,930 --> 00:08:04,860 Oliver Horn: demographics there and our Hemp Foods Australia business. Our Hemp Foods Australia 147 00:08:04,860 --> 00:08:08,750 Oliver Horn: business is generating over four million dollars of revenues, profitable 148 00:08:09,270 --> 00:08:12,690 Oliver Horn: as I said and is positioned in the food space which is much 149 00:08:12,690 --> 00:08:16,140 Oliver Horn: more accessible, higher growth, is bang on consumer trend in terms 150 00:08:16,140 --> 00:08:20,230 Oliver Horn: of sustainable plant based super nutrition, and that's really our priority. 151 00:08:20,250 --> 00:08:23,640 Oliver Horn: So the CBD medicinal cannabis space here in Australia for us 152 00:08:23,640 --> 00:08:27,300 Oliver Horn: is definitely not a big priority for us. We're taking 153 00:08:27,300 --> 00:08:29,400 Oliver Horn: an opportunistic approach to this at this stage. 154 00:08:29,700 --> 00:08:32,760 Adam Lang: Great. Stay with me, Oliver. We'll be back in a minute. 155 00:08:37,780 --> 00:08:43,329 Adam Lang: My guest this morning is Oliver Horn, CEO of Elixinol Wellness. So let's talk about 156 00:08:43,330 --> 00:08:46,750 Adam Lang: the food aspect of what you're doing with hemp at 157 00:08:46,750 --> 00:08:49,780 Adam Lang: the moment. If I was looking to consume your products, 158 00:08:49,780 --> 00:08:51,579 Adam Lang: where would I find it? What am I looking for? 159 00:08:52,090 --> 00:08:55,770 Oliver Horn: You can go pretty much in every whole food store around the country. 160 00:08:55,780 --> 00:08:59,170 Oliver Horn: You can find it in IGAs, in delis, and Woolworth's 161 00:08:59,170 --> 00:09:02,650 Oliver Horn: as well, and Costco. So we're really well distributed nationally. 162 00:09:03,309 --> 00:09:06,550 Oliver Horn: And that's really exciting because we've been a leader in 163 00:09:06,550 --> 00:09:08,530 Oliver Horn: the industry for a long time. By far the biggest 164 00:09:08,530 --> 00:09:11,830 Oliver Horn: player when it comes to branded goods sales and having 165 00:09:11,830 --> 00:09:15,610 Oliver Horn: our products in full distribution, readily accessible, given the consumer 166 00:09:15,610 --> 00:09:17,950 Oliver Horn: dynamics and the trends that we're seeing is a very 167 00:09:17,950 --> 00:09:19,240 Oliver Horn: rewarding position to be in. 168 00:09:20,020 --> 00:09:22,360 Adam Lang: So for the uninitiated, what am I looking for? If 169 00:09:22,360 --> 00:09:24,280 Adam Lang: I go into one of those stores, how would I 170 00:09:24,280 --> 00:09:25,230 Adam Lang: be buying one of your products? 171 00:09:25,390 --> 00:09:28,210 Oliver Horn: Of course, you look really for Hemp Foods Australia products 172 00:09:28,210 --> 00:09:29,860 Oliver Horn: or brands Essential Hemp. 173 00:09:30,309 --> 00:09:30,969 Adam Lang: Yep. 174 00:09:30,970 --> 00:09:33,280 Oliver Horn: Sativa (Skincare) which is our skincare brand based on hemp. And then we 175 00:09:33,280 --> 00:09:36,970 Oliver Horn: have Grounded which are bread spreads based in hemp. And 176 00:09:37,300 --> 00:09:40,330 Oliver Horn: you really look for Hemp Seeds, which is probably our 177 00:09:40,330 --> 00:09:43,450 Oliver Horn: best seller. We have organic hemp seeds, an Australian grown 178 00:09:43,690 --> 00:09:47,200 Oliver Horn: hemp seed, but then also hemp oils. And they're very versatile 179 00:09:47,200 --> 00:09:51,160 Oliver Horn: oils for cooking purposes, for salads and so forth. Highly nutritious, 180 00:09:51,160 --> 00:09:53,990 Oliver Horn: very delicious. And those are probably our key products. 181 00:09:54,160 --> 00:09:56,380 Adam Lang: So in your case, this is actually product that you 182 00:09:56,380 --> 00:09:58,449 Adam Lang: can afford to be eating for yourself, right? 183 00:09:59,080 --> 00:10:02,560 Oliver Horn: Absolutely. Absolutely. Look at me, out here at home. But consumers 184 00:10:02,559 --> 00:10:07,950 Oliver Horn: use them mostly on salads in Bircher muesli, on porridge, as toppings. 185 00:10:07,960 --> 00:10:10,270 Oliver Horn: I mean, it's incredibly versatile. It's a bit of a 186 00:10:10,270 --> 00:10:13,450 Oliver Horn: nutty flavour and it's so it's delicious by itself. But 187 00:10:13,450 --> 00:10:16,980 Oliver Horn: as an ingredient, as a food ingredient, it's actually fantastic. 188 00:10:16,990 --> 00:10:19,270 Oliver Horn: And we use them in bread spreads a lot similar 189 00:10:19,270 --> 00:10:23,110 Oliver Horn: to Nutella's bread spread, for example, and those products are 190 00:10:23,380 --> 00:10:25,099 Oliver Horn: growing in popularity very, very quickly. 191 00:10:25,550 --> 00:10:29,140 Adam Lang: Terrific. Now, just going back to the medicinal products, the 192 00:10:29,140 --> 00:10:32,469 Adam Lang: CBD oil products. Am I correct in saying that Australia's 193 00:10:32,470 --> 00:10:36,670 Adam Lang: regulations mean you can't actually produce certain products here? 194 00:10:37,390 --> 00:10:40,300 Oliver Horn: Not quite. The regulation has really come a long way. 195 00:10:40,309 --> 00:10:45,430 Oliver Horn: So you can grow, extract, produce medicinal cannabis products here 196 00:10:45,429 --> 00:10:48,220 Oliver Horn: within limits. And there are certain exceptions. But by and large, 197 00:10:48,460 --> 00:10:51,100 Oliver Horn: you know, we're seeing a supply chain and value chain 198 00:10:51,550 --> 00:10:55,330 Oliver Horn: emerging in Australia. Previously, a lot of products were produced 199 00:10:55,330 --> 00:10:59,560 Oliver Horn: overseas and imported, but that is changing very rapidly. However, 200 00:10:59,650 --> 00:11:03,699 Oliver Horn: it is a very highly regulated pathway and it's still 201 00:11:03,820 --> 00:11:07,420 Oliver Horn: subject to drug regulations to a large extent. So it's 202 00:11:07,420 --> 00:11:10,059 Oliver Horn: very much regulated. But what we do see, we see 203 00:11:10,059 --> 00:11:12,730 Oliver Horn: the market opening up the World Health Organisation, the United 204 00:11:12,730 --> 00:11:16,990 Oliver Horn: Nations has declared CBD as safe, and that has really given 205 00:11:16,990 --> 00:11:19,720 Oliver Horn: the impetus for a lot of markets like Australia to 206 00:11:19,720 --> 00:11:22,420 Oliver Horn: open up access to these wonderful products that are made 207 00:11:22,420 --> 00:11:25,540 Oliver Horn: from hemp. And one of the most recent announcements was 208 00:11:25,540 --> 00:11:29,589 Oliver Horn: from the TGA to down schedule CBD from schedule four 209 00:11:29,600 --> 00:11:32,290 Oliver Horn: to schedule three, which means that you can actually, in 210 00:11:32,290 --> 00:11:36,370 Oliver Horn: the future get CBD products over the counter in any pharmacy. 211 00:11:36,550 --> 00:11:39,250 Oliver Horn: And no products at the moment are available. They're still being developed, 212 00:11:39,250 --> 00:11:42,730 Oliver Horn: but as of 2022, consumers can simply go into a 213 00:11:42,730 --> 00:11:45,310 Oliver Horn: pharmacy and grab them off the shelf and get them 214 00:11:45,309 --> 00:11:46,170 Oliver Horn: from the pharmacies. 215 00:11:46,420 --> 00:11:50,710 Adam Lang: Great. So you, Oliver, you were brought on at Elixinol Wellness last 216 00:11:50,710 --> 00:11:55,300 Adam Lang: year to reset the company's strategy. Unfortunately, like many businesses 217 00:11:55,300 --> 00:11:58,540 Adam Lang: in 2020 and this year, that has also meant a 218 00:11:58,540 --> 00:12:02,679 Adam Lang: significant reduction in costs. How challenging was it to walk 219 00:12:02,679 --> 00:12:05,860 Adam Lang: into a business that's been operating since the early 90s, 1993, 220 00:12:07,330 --> 00:12:09,100 Adam Lang: and implement major change? 221 00:12:09,520 --> 00:12:13,340 Oliver Horn: It's been extremely challenging, but it's been also extremely rewarding. 222 00:12:13,480 --> 00:12:15,340 Oliver Horn: I mean, just to recap what we have done. We 223 00:12:15,340 --> 00:12:19,689 Oliver Horn: really simplified our business strategy to the market areas that 224 00:12:19,690 --> 00:12:22,930 Oliver Horn: are for us, high margin, high growth, and at the 225 00:12:22,929 --> 00:12:25,330 Oliver Horn: same time, we've taken significant cost out to reduce our 226 00:12:25,330 --> 00:12:29,290 Oliver Horn: cost base by almost 50 per cent. So half the size we used to be 227 00:12:29,530 --> 00:12:33,010 Oliver Horn: while at the same time relaunching our global product portfolio. 228 00:12:33,010 --> 00:12:37,479 Oliver Horn: Only last year in April, we relaunched our entire new consumer brand, Elixinol, 229 00:12:37,960 --> 00:12:42,100 Oliver Horn: brought on new talent, driven our digital eCommerce capability because 230 00:12:42,100 --> 00:12:44,920 Oliver Horn: that's how the consumers are shopping and really resetting and 231 00:12:44,920 --> 00:12:48,130 Oliver Horn: rejuvenating our entire business on half of the cost than we 232 00:12:48,130 --> 00:12:50,680 Oliver Horn: used to be with great new products that we've been 233 00:12:50,679 --> 00:12:52,929 Oliver Horn: bringing out. And it's sort of I see it now 234 00:12:52,929 --> 00:12:55,900 Oliver Horn: that towards the end of the year, this turnaround phase 235 00:12:55,900 --> 00:12:59,560 Oliver Horn: and rejuvenation phase is really completed. We have a great team. 236 00:12:59,559 --> 00:13:01,840 Oliver Horn: Our balance sheet is extremely strong. We have a lower 237 00:13:01,840 --> 00:13:05,410 Oliver Horn: cost base and great new products. And that's really for 238 00:13:05,410 --> 00:13:08,230 Oliver Horn: us when we're looking at phase two of our journey 239 00:13:08,470 --> 00:13:10,990 Oliver Horn: where we're harnessing all that to bring off new products 240 00:13:10,990 --> 00:13:14,640 Oliver Horn: and deepening our distribution across international markets. So it's been 241 00:13:14,660 --> 00:13:17,510 Oliver Horn: hard and it's more so you don't even talk about 242 00:13:17,510 --> 00:13:20,230 Oliver Horn: it anymore because of COVID. Because certainly when I started 243 00:13:20,410 --> 00:13:23,230 Oliver Horn: in April last year, I was still expecting to travel 244 00:13:23,230 --> 00:13:26,260 Oliver Horn: the world and visit our offices in Europe, in the US. 245 00:13:26,260 --> 00:13:28,720 Oliver Horn: And I've been confined to the bedroom like so many 246 00:13:28,720 --> 00:13:32,020 Oliver Horn: of us here in Australia. And that's been another complexity. 247 00:13:32,290 --> 00:13:35,500 Oliver Horn: It's just been hard to build culture and drive the 248 00:13:35,500 --> 00:13:38,770 Oliver Horn: right behaviours through the organisation. But I'm pleased to say that 249 00:13:38,790 --> 00:13:40,610 Oliver Horn: we've gotten there despite all the challenges. 250 00:13:40,980 --> 00:13:43,440 Adam Lang: It sounds like, Oliver, that you've taken one of the 251 00:13:43,440 --> 00:13:47,340 Adam Lang: oldest plants known and turned it into a very modern 252 00:13:47,340 --> 00:13:49,559 Adam Lang: business at Elixinol Wellness. Well done to you. 253 00:13:49,920 --> 00:13:52,230 Oliver Horn: Yeah, thank you very much. And it's just the beginning. Look, 254 00:13:52,230 --> 00:13:55,080 Oliver Horn: we're at a very early inception point of a huge 255 00:13:55,080 --> 00:13:59,250 Oliver Horn: consumer trend for sustainable nutrition and being established in that 256 00:13:59,250 --> 00:14:02,099 Oliver Horn: category for so long, as you said, and having so 257 00:14:02,100 --> 00:14:05,260 Oliver Horn: much credibility and kudos and expertise and IP is just 258 00:14:05,260 --> 00:14:08,370 Oliver Horn: an incredibly fortunate position that I'm finding myself and the 259 00:14:08,370 --> 00:14:11,400 Oliver Horn: business find itself in. And we're just excited about the next 260 00:14:11,400 --> 00:14:14,100 Oliver Horn: 10 years because consumers will see the benefit of the 261 00:14:14,100 --> 00:14:17,230 Oliver Horn: hemp plant and regulations will change and with that markets will open. 262 00:14:18,000 --> 00:14:20,790 Adam Lang: Oliver, I've learned a lot. I've really enjoyed talking to you. 263 00:14:20,790 --> 00:14:22,140 Adam Lang: So thank you for talking to Fear and Greed. 264 00:14:22,770 --> 00:14:25,890 Oliver Horn: Fantastic, Adam. Thanks for having me. It's been a pleasure. And 265 00:14:25,920 --> 00:14:26,410 Oliver Horn: all the best. 266 00:14:26,850 --> 00:14:29,460 Adam Lang: That was Oliver Horn, global CEO of Elixinol Wellness. 267 00:14:30,930 --> 00:14:34,080 Adam Lang: This is the Fear and Greed Daily Interview. Join Sean 268 00:14:34,080 --> 00:14:36,840 Adam Lang: Aylmer every weekday morning for the full Fear and Greed 269 00:14:36,840 --> 00:14:39,580 Adam Lang: podcast with all the business news you need to know. 270 00:14:39,900 --> 00:14:41,760 Adam Lang: I'm Adam Lang. Enjoy your day.