Functional Brands Inc. (NASDAQ: MEHA)

Functional Brands is a manufacturer and distributor of nutritional supplements and hemp-derived products operating in the nutraceutical and hemp industries. The company produces over 150 supplement products under the Kirkman brand, prenatal vitamins under P2i by Kirkman, golf-focused supplements under Golf Mellow, and hemp-derived capsules, gummies, tinctures, and cigarettes under the HempTown Naturals brand.

Functional Brands generates revenue primarily from the sale of its supplement and hemp products to pharmacies, US wholesalers, international distributors, and direct to consumer channels. All products are sold over the counter without a prescription, and revenue is derived from both one-time purchases and recurring orders through online platforms and retail partners.

The company operates through the following segments: Nutraceutical Supplements and Hemp Products.

• Nutraceutical Supplements: This segment includes the Kirkman brand offering more than 150 products such as probiotics, enzymes, vitamins, multivitamins, amino acids, antioxidants, immune support, essential fatty acids, prenatal and personal care items; the P2i by Kirkman prenatal vitamin line; and the Golf Mellow brand targeting golfers with supplements for joint health, focus, and recovery. Products are manufactured in a cGMP certified, FDA registered facility in Lake Oswego, Oregon and are sold to healthcare practitioners, pharmacies, wholesalers, and direct to consumer.

• Hemp Products: This segment encompasses the HempTown Naturals brand, which sells hemp derived CBD and CBG products including capsules, cigarettes, gummies, and tinctures that comply with the 2018 Farm Bill and are distributed in states permitting such sales.

Functional Brands positions itself as a high quality provider in the nutritional supplement market, leveraging the Kirkman brand's over 75 years of history, a loyal customer base, and rigorous testing for heavy metals, pesticides, and microbial contaminants. Competitors in the supplement space include Nature Made, Centrum, private label store brands, and specialty providers such as New Beginnings and Claire Labs, while in the hemp sector the company faces rivals like Charlotte's Web, cbdMD, Joy Organics, and MedTerra. Its competitive advantages stem from its cGMP manufacturing, third party certifications such as the FORUM prenatal validation, and a diversified product portfolio spanning prenatal, specialty, and hemp categories.

Functional Brands serves a diverse customer base that includes individual consumers, healthcare professionals such as doctors and chiropractors, and business to business partners like iHerb, Emerson, and FullScript. The company also maintains direct to consumer relationships through its online sites and Amazon storefront, and supplies private label arrangements for 12 third party brands.