Global CBD / Hemp Industry Snapshot (OTC: $CSUI) (OTC: $MJNA) (CSE: $TGIF.C) (OTCQX: $TGIFF), (TSXV: $KHRN.V) (OTCQX: $KHRNF)
How Distribution Platforms Are Growing the Sector
Point Roberts WA, Delta, BC - September 22, 2020 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a special report on the continued growth of the global CBD/hemp industry as additional international markets come into play and how smart companies hedging for the future are putting their focus into globalized distribution systems.
As we see more global acceptance of the hemp/CBD industry, whether in the form of new import/export regulations coming into play in South America, potential markets opening up South East Asia, Japan and South Korea or larger companies like Amazon being more acceptant of hemp/CBD products, the CBD industry is going global faster than many anticipated, especially in the midst of a global pandemic. That being said, one of the most significant drivers of this industry today is the renewed focus on health and wellness and immune boosting products that we've seen ramp up due to the COVID-19 pandemic.
One company based out of Switzerland, Cannabis Suisse Corp. (OTC: CSUI), a fully-licensed Swiss cannabis cultivation and distribution company for recreational tobacco products and medical CBD oils, recently announced its own online expansion plans including the upcoming launch of a new brand on Amazon.
Сannabis Suisse Corp. is developing its own line of products including hemp oil, hemp protein, hemp gummies and hemp hearts with all the appropriate certificates and licenses, for sale on Amazon.
This news follows a recent announcement for online distribution of its cannabis and CBD products with uWeed from their retail outlets and online store (www.uweed.ch).
The expansion into online sales of hemp gives the company, which is headquartered in Switzerland, wider access and inroads into US markets as the legal environment for CBD products evolves.
Mr. Alain Parrik, COO & Director said, "Amazon is an important distribution outlet for us as we ramp up for expansion across multiple online retail platforms. Introducing a new line of hemp products paves the wave for additional products in the future."
Cannabis Suisse Corp. will be in compliance with Amazon rules and respects their position that CBD is currently banned on Amazon but hemp products are not.
The Company, as a registered manufacturer of both products will continue to use flowers with the highest concentration of CBD. For the new Amazon product line, oil will be squeezed from the seeds allowing Cannabis Suisse to use the whole plant in its production and benefit from it.
The Company grows high quality, organic cannabis with sustainable, all-natural principles. Cannabis Suisse products are laboratory tested to ensure the end users have access to a standardized, safe and consistent product.
Looking more to domestic markets, 1933 Industries Inc. (CSE: TGIF) (OTCQX: TGIFF), a vertically-integrated cannabis consumer packaged goods company with a diverse portfolio of consumer-driven brands, recently announced that it has set up distribution of its Canna Hemp™ line of wellness products in conjunction with CBD Plus, the largest and most trusted supplier of CBD products across the United States.
The Company reports that its wholly-owned subsidiary, Infused MFG, signed a Master Services and Supply Agreement with MCV Enterprises LLC, an Oklahoma company doing business as CBD Plus and CBD Plus USA, for the marketing and sale of Canna Hemp™ products in CBD Plus corporate-owned and franchisee brick and mortar retail stores. The one-year Agreement includes a 45-day trial period, effective immediately.
CBD Plus is focused in the Midwest and Southern US, with over 120 locations and growing - in Texas, Oklahoma, Kansas, Arkansas, Tennessee, Georgia, Florida, North Carolina, and Maryland. The partnership with CBD Plus is another important step for the Company as it builds the Canna Hemp™ line as a leading brand in the US CBD market. According to the latest outlook by the Brightfield Group, hemp-based CBD US sales will reach $12.4 billion by 2023 and $16.8 billion by 2025.
Mr. Eugene Ruiz, President of 1933 Industries said, "CBD Plus is a well-respected source of safe, legal and affordable CBD products that meet the highest standards in the industry. We are pleased that our Canna Hemp™ line meets and exceeds those high standards. We look forward to collaborating with CBD Plus to increase awareness and education regarding the benefits and value of CBD in our everyday lives."
"CBD Plus and its family of franchisees is proud to announce its relationship with 1933 industries", said Mr. Charles V. Reynolds III, CEO of CBD Plus. "We look forward to introducing Canna Hemp™ products to our entire customer base nationwide. Quality Assurance and Cannabis Education have always been cornerstones of the CBD Plus USA mission, and we are excited to partner with a brand such as Canna Hemp™ that shares those values. We remain committed to helping educate the public on all of the benefits and uses of quality CBD, and we believe this relationship aligns with our goals."
CBD Plus has been committed to improving the lives of communities since 2017, and has now grown into a trusted source of CBD products in the US. Founded on the cornerstone of empowering customers to live their best lives, CBD Plus has become an authoritative advocate for CBD, and a dedicated educator of the benefits of CBD oil. CBD Plus offers a variety of self-care and lifestyle products with CBD that exceeds the industry standard of quality, producing carefully extracted, pesticide-free, and non-GMO products.
Looking back to the international market, Medical Marijuana, Inc. (OTC: MJNA), the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, recently announced that its subsidiary HempMeds® Brasil had its best revenue month ever in Company history in August 2020.
"Since 2015, HempMeds® Brasil has sold more than 80,000 units of cannabidiol (CBD) to Brazilian citizens," said Medical Marijuana, Inc. CEO, Dr. Stuart Titus. "We are proud to be the recipients of the first permits to import CBD into Brazil and we have been able to become industry leaders there."
"Our Company was formed and is led by Brazilians - we care immensely about providing people here with affordable, high-quality CBD products that are legal and scientifically-proven," said HempMeds® Co-CEO, Caroline Heinz. "We have showcased to citizens even despite a global pandemic and a very poor currency exchange rate, we have been able to increase our sales and make our products affordable for the struggling economy through adjusting our prices and offering payment plans."
Before becoming Co-CEO of HempMeds®' operations, Heinz served as Vice President of HempMeds® Brasil. She joined the Company in 2014 and helped pass legislation to get the Brazilian government to subsidize CBD for several indications. She was also able to establish two HempMeds® Brasil offices and create a network of Brazilian doctors and medical professionals.
Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF), a vertically integrated cannabis leader with core operations in Latin America and Europe, recently announced that it has entered into an exclusive distribution agreement with Rappi SAS, the leading Latin American last-mile multi-vertical platform that is backed with a USD 1 billion investment from Softbank Group Corp., and Softbank Vision Fund. The expansive agreement comprises a 6-month exclusive distribution partnership between Rappi and Khiron to introduce and distribute the Company's CPG product portfolio across Latin America through the Rappi platform, starting with KuidaTM, the Company's branded CBD skincare product line, with the potential to build on the partnership over time.
Beyond a standard vendor agreement, this expanded partnership introduces the Company's CBD-based Wellbeing products to millions of Rappi users across Latin America through its sophisticated technology and advanced customer-centric marketing strategies. With the Kuida store already launched on Rappi in May 2020 for the Colombian market, distribution will be expanded to Uruguay and Costa Rica, where Kuida has been recently approved. The Company also intends to introduce its product line through Rappi's fast growing consumer base to countries such as Brazil, Mexico, Ecuador and Chile, subject to regulatory approvals.
Colombia's Rappi is the market leading multi-vertical application in Latin America with a presence in Brazil, Colombia, Mexico, Argentina, Chile, Ecuador, Costa Rica, Uruguay and Peru.
Through its platform, customers buy products and services and receive home delivery across multiple categories, including, medical, health, grocery, restaurants, pharmacies, beverage and professional services among others. In addition, the application has a virtual wallet, RappiPayTM, where users can make P2P transfers and payments. Rappi has an average of more than 10 million active users monthly, according to research firm Apptopia, providing deliveries for almost 100,000 businesses in LatAm, including over 13 million deliveries in Colombia alone.
"Rappi is the delivery brand that everyone in Latin America knows and uses daily. The partnership with Rappi reduces our product launch and logistics costs and transforms our availability and exposure to millions of customers across the region. Rappi is the last-mile delivery brand that will help us bring Khiron product to more customers than ever before. We are proud to establish this first-of-its-kind partnership between these two companies, which are both industry leaders in LatAm, and were both founded by Colombians," comments Alvaro Torres, Khiron CEO and director.
"As the market for consumer cannabis products and services globalizes it is a natural fit for us to partner with Khiron to meet our app users´ needs. Like us, they are a recognized leader in the region, and an innovator in bringing quality products to market, "comments Simon Borrero, Rappi SAS CEO.
As the CBD/hemp space continues to gain global momentum, new distribution platforms and models as well as a heavy focus on product quality, consistency and efficacy will become more and more paramount for companies looking to be a global player and make no mistake, this is a global play. With companies like Amazon now also entering into the space, the level of competition has risen dramatically and investors should now be looking at the distribution and supply chain of any CBD/hemp company first and foremost as this looks to be an impactful factor moving forward.
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