NEW YORK, Feb. 17, 2021 /PRNewswire/ -- As public acceptance and use continues to grow, so too does the positive momentum in opening of new markets for the cannabis derivative CBD. A new bipartisan bill is currently being reintroduced to the US congress, while the European CBD market is already projected to grow 400% through 2023. With the onboarding of additional global markets, such as in Latin America and Asia, the potential market size of CBD is projected to grow by US$22 billion at a CAGR of 125.5% CAGR by 2026. Ahead of these new legalizations, savvy industry leaders have been developing new products to unleash on new markets as they open up, including from HempFusion Wellness Inc. (TSX: CBD.U) (OTCPK: CBDHF), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), CV Sciences Inc. (OTCQX: CVSI), Aphria Inc. (NASDAQ: APHA) (TSX: APHA), and Hexo Corp. (NYSE: HEXO) (TSX: HEXO).
Back in January, HempFusion Wellness Inc. (TSX:CBD.U) (OTC:CBDHF) made the leap into the European market, through an exclusive distribution agreement with a European distributor with an extensive retail store network. The foray into Europe begins in Ireland, complete with fully European Union (EU) compliant labeling, packaging, and distribution for select HempFusion CBD & Probulin Probiotic products.
"We are incredibly excited to launch sales into Europe, starting with Ireland, through an exclusive distribution agreement with a consumer goods distributor whose deep and established relationships include nearly every major [Irish- and UK-based] retail chain," said Jason Mitchell, N.D., Co-founder and Chief Executive Officer of HempFusion. "This launch establishes HempFusion's European presence and represents the initial phase of the Company's broader European expansion plans," continued Dr. Mitchell.
The announcement came shortly prior to a series of other developments from HempFusion, including the launch of Probulin Probiotics' Amazon store and expansion into brick and mortar product selection, the national distribution of Probulin Total Care Immune Probiotic, and finally, the launch of sleep and stress products with twice the amount of CBD.
Probulin is one of Amazon's select elite probiotic brands that ships cold and protected products straight to consumers' doors. Initial results of promotion through the Amazon store have generated a strong average return on ad spend (ROAS) of US$6.59 for every US$1 invested as of the end of January 2021.
The products are delivered in environmentally-friendly, insulated boxes, made from recycled cotton denim, and shipped on ice to protect the probiotic products. Probulin's scientifically validated MAKTrek-3-D Probiotic Delivery System provides a three-step system of protection, helping to ensure better survival of the beneficial probiotic bacteria so that more of the probiotics can arrive in the gut alive.
With the introduction into the EU, HempFusion's distribution partner will begin the launch of 6 SKUs consisting of four Probulin and two HempFusion SKUs, with more products expected to launch in the first half of 2021.
"Global consumers are becoming increasingly familiar with CBD and its potential benefits to their daily routine," added Dr. Mitchell. "After conducting months of extensive consumer research, it was clear that the majority of our customers and consumers in the market are seeking products with increased CBD percentages. It has always been HempFusion's goal to provide new and innovative products that consumers are looking for."
The EU is also looking to expand its legal CBD product offerings, having recently added CBD to its list of cosmetic ingredients, called Cosing—a database of cosmetic regulations that expressly provides for authorized and unlawful ingredients and sets forth their particular purposes and functions.
Prior to the ruling, only synthetic CBD was expressly allowed as a cosmetic ingredient.
Aphria Inc. (NASDAQ:APHA) (TSX:APHA) got a head start in the EU's CBD cosmetics market back in 2019 when it launched CannRelief, a CBD-based nutraceutical and cosmetics product line for the German market.
Today, Aphria is making headlines through both its proposed merger with Tilray Inc. to become the largest company in the industry, and more recently through its attention from WallStreetBets, the Reddit crowd behind the GameStop revolt, who have now thrown their weight behind Aphria.
Last year, Aurora Cannabis (NYSE:ACB) (TSX:ACB) made headlines when it made a CBD deal to enter the lucrative US market. The entry into the United States began through the acquisition of US-based CBD company Reliva, as part of a more broader transition into consumer packaged goods (CPGs).
Aurora more recently released its fiscal 2021 Q2 results, which included an increase in revenue from product launches in vapes, edibles, and concentrates.
The new line comes from a joint venture called Truss CBD USA, with Hexo's prominent partner, Molson Coors Beverages. The products are now available in the state of Colorado, and allow Colorado consumers to choose from three different flavors: Mind & Body (Strawberry Hibiscus), Focus (Grapefruit Tarragon), and Unwind (Blueberry Lavender).
Not only are the new beverages innovative in their ingredients, but also in their delivery technology, which comes from a patent-pending nanoemulsion delivery technology from Quicksilver. Because CBD isn't water-soluble, the delivery technology was necessary in order to help consumers absorb the CBD in a more efficient and pleasing way.
As more markets open up in the CBD industry, companies with a wide portfolio of products, such as HempFusion Wellness, continue to prepare their product lines for expansion into these new marketplaces and beyond.
To get more information on HempFusion Wellness Inc., click here.
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