It’s been tough to ignore the cannabis boom.
Major retailers are racing to stock shelves to keep up with demand. Neiman Marcus, Sephora, Vitamin Shoppe, Kroger, Barney’s DSW, Sephora, CVS, American Eagle, and Walgreen’s are just a few. Consumers are clamoring for product to help alleviate stress, anxiety, pain, and even chronic issues. Meanwhile, CBD offers explosive growth. “We project retail CBD sales will increase to $10.3 billion by 2024, a five-year compound annual growth rate of 54%,” says Kristen Nichols, editor of the 2nd Annual Hemp & CBD Industry Factbook.
At the same time, “Rapidly changing consumer attitudes toward hemp-derived CBD-based products continue to drive consumer demand and market growth conservatively expected to reach $24 billion in North America by 2023. But, many retailers and manufacturers are still playing catch-up to that demand, putting in play billions of dollars in sales, according ‘2019 CBD Market Survey,’” as highlighted by Refrigerated Frozen Food.
However, it’s not just CBD that consumers are clamoring for. THC is seeing considerable demand, too. “Marijuana sales are booming,” says Politico, “with some states seeing 20 percent spikes in sales as anxious Americans prepare to be hunkered down in their homes potentially for months. Weed sellers are staffing up too, hiring laid-off workers from other industries to meet demand.”
As the growth story unfolds with cannabis, some of the companies o keep an eye on include The Yield Growth Corp. (CSE:BOSS)(OTC:BOSQF), Canopy Growth Corporation (TSX:WEED)(NYSE:CGC), Charlotte’s Web Holdings Inc. (OTC:CWBHF)(TSX:CWEB), Greenlane Holdings Inc. (NASDAQ:GNLN), and Tilray Inc. (NASDAQ:TLRY).
The Yield Growth Corp. (CSE:BOSS)(OTCQB:BOSQF) BREAKING NEWS: The Yield Growth Corp. announced its wholly owned subsidiary Jack n Jane Essentials Inc. signed a definitive agreement on April 27, 2020 with licensed producer Argentia Gold Corporation, for the manufacture and distribution of Jack n Jane branded cannabis products in Canada. The agreement includes 35 products to be launched over a 2-year term, including similar products that have been previously launched by Yield Growth subsidiary and cannabis wellness brand Wright & Well, in Oregon, U.S. Yield Growth has developed the cannabis brand Jack n Jane especially for the Canadian market, with dozens of cannabis 2.0 products planned using proprietary formulas from Yield Growth’s extensive catalogue.
The agreement states the parties will work towards an initial summer 2020 launch with THC-infused topical balm, gel, massage oil and THC and CBD tinctures, as seen in the Wright & Well collection. THC pre-rolls, live resin and gummies are planned for launch in late 2020 and THC-infused mints and chocolates, as well as CBD skin care products are planned to launch in 2021. Cannabis-infused beverages, teas, capsules and intimacy products are planned to follow. The formulas for the 35 products in the line come from Yield Growth’s extensive formula library. These formulas are all natural, plant-based, and developed with Ayurvedic principles. The topical products contain Yield Growth’s proprietary hemp root oil, made using Yield Growth’s proprietary and patent-pending extraction technology. Argentia Gold expects to fulfill the licensing requirements to sell cannabis products in 3 provinces next month, with plans underway to obtain sales licenses in 7 more provinces this year.
“We are extremely excited to be embarking on this new initiative. Argentia Gold has the cannabis cultivation and processing licenses to enable us to launch our Jack n Jane products in Canada. The execution of this agreement marks the culmination of years of work by our product development, branding, legal and marketing teams,” says Penny White, Yield Growth co-founder and CEO. “After launching 20 cannabis and personal care products in the past 16 months, while developing a diverse range of brands, we have gained the expertise to launch a range of cannabis 2.0 products into the Canadian market over the next 2 years.”
“Our partnership with Yield Growth delivers a line of products that greatly expands our offerings and further positions Argentia Gold as a leader in this newly emerging market of beverages, edibles and topicals,” says Dave Thomson, Argentia Gold President. “Argentia Gold’s expertise in the cannabis and consumer packaged goods sectors will allow Yield Growth to successfully enter the infused market and paves the way for the two companies to potentially become major players in cannabis 2.0 in Canada.”
Under the agreement, Jack n Jane will provide non-cannabis raw materials, bulk product, product formulation information, product development, marketing, packaging and labels, and sales support. Argentia’s obligations are to provide cannabis ingredients, manufacturing services, ensure regulatory compliance, and distribute the products throughout Canada. The term of the agreement is 2 years, and the parties agree to equally split the profits after costs recoupment. Yield Growth retains all intellectual property in its Jack n Jane brand and formulations.
Yield Growth already has the required child-resistant packaging and bulk product ready for cannabis infusion for the initial product launch. Products must be registered and approved by Health Canada before manufacturing begins, and then the products need to be registered in each province for online sales and sales through dispensary retail stores throughout Canada prior to sale.
According to estimates by Deloitte, Canadian cannabis topicals and edibles (Cannabis 2.0) could be worth CAD $2.7 billion annually. The global legal marijuana market size is expected to reach USD $73.6 billion by 2027, according to a new report published by Grand View Research, Inc.
Other related developments from around the markets include:
Canopy Growth Corporation (TSX:WEED)(NYSE:CGC) announced a new line of CBD Creams: Everyday, Motion and Revitalize. The creams are the latest addition to First & Free’s portfolio of hemp-derived CBD isolate products including oil drops and softgel capsules, which launched exclusively in the U.S. last December. The new product line includes three distinct topical creams with CBD isolate that has been derived from 100% USA-grown hemp. Each 1.76 oz tube contains 2500 mg of CBD, making First & Free the highest strength hemp-derived CBD topical cream on the US market.* The creams have been scientifically formulated using state-of-the-art technology and rigorous testing procedures to ensure the highest level of safety, performance and consistency. Formulated for everyday use, the creams are non-greasy and easy to apply.
Everyday Cream with CBD: delivers continuous nourishment to areas of your skin that need it most, leaving you balanced, refreshed and rejuvenated. Motion Cream with CBD + Arnica: delivers comfort and defends against everyday wear and tear. Revitalize Cream with CBD + Capsaicin: naturally revives, nourishes and soothes trouble spots that get on your nerves.
All three topical creams do not contain any parabens, sulphates, glycols, fragrances, or soy.
According to Canopy Growth Chief Commercial Officer David Bigioni, “With our new line of topical creams, First & Free is building a portfolio to treat the everyday stressors that affect both body and mind. We’re proud to offer the highest strength topical cream on the US market – up to five times the CBD of other topicals – at a great value.”
Charlotte’s Web Holdings Inc. (OTC:CWBHF)(TSX:CWEB) announced that David Panter has joined the Company as Chief Operating Officer, effective March 30, 2020. Mr. Panter brings over 20 years of broad global supply chain experience at leading cosmetic, agriculture, pharmaceutical, medical device and consumer packaged goods (CPG) companies, including Estée Lauder Company, Luxottica Retail, Campbell Soup Company, and Tyco Healthcare/Covidien. Most recently, at Estée Lauder Company, Mr. Panter was responsible for optimizing the global supply chain including the manufacturing locations and distribution networks in North America, Europe, Asia Pacific and Latin America. Throughout his successful career, he has led manufacturing facilities, quality, distribution and warehouse locations across multiple product categories and has been responsible for transforming operations through continuous improvement, coaching, strategy development and tactical execution.
Greenlane Holdings Inc. (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories and specialty vaporization products, today reported financial results for the fourth quarter and full year ended December 31, 2019. Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer, said, “2019 was a historic year for us. We are proud of the progress we made in our first year as a public company – in particular, our ability to advance our business goals while navigating turbulent industry headwinds throughout the year. Over the second half of the year, we undertook a large-scale shift in our business model by beginning to successfully move away from high-volume, low-margin products and sales, in favor of high-margin sales and the promotion of our house brands and products. We’ve concentrated on identifying cost-cutting opportunities and putting in place a thoughtful plan to leverage our scale to drive sustained, long-term growth and profitability. We believe the sequential increase of our fourth quarter margins by 396 basis points demonstrates the strength of our business and our ability to adapt to changing market conditions, while continuing to deliver on our targets. We are confident these steps best position us to become cash-flow positive in the near future, as we move forward.”
Tilray Inc. (NASDAQ:TLRY) reported financial results for the fourth quarter and full fiscal year ended December 31, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated. “Our full year results demonstrate strong sales growth momentum, which we expect to continue in 2020,” said Brendan Kennedy, Tilray’s Chief Executive Officer. “Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders. Tilray has a diversified business model comprised of global medical, Canada adult-use and hemp products which positions us well in the current volatile market environment. We are still in the early days of this emerging growth industry and will continue being good stewards of shareholder capital as we aim to build the world’s most trusted and valued cannabis and hemp company.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media which has a partnership with www.MarijuanaStox.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media, which has a partnership with www.MarijuanaStox.com, is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement between Winning Media (partners of www.MarijuanaStox.com) and The Yield Growth Corp., Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for The Yield Growth Corp. We own ZERO shares of The Yield Growth Corp. Please click here for full disclaimer.
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