A day after graduating to the OTCQX, the highest tier of OTC Markets Group, Phivida Holdings (OTCQX:PHVAF)(CSE:VIDA) said it inked an exclusive national agreement with Natural Speciality Sales, an industry leader in Natural/Specialty retail channel trade across the U.S.
Natural Specialty is a unit of The Carlyle Group's (NASDAQ:CG) Acosta, a sales and marketing giant for consumer packaged goods companies that generates annual revenue nearing $2 billion.
Per the deal, Phivida's soon-to-be-launched OKI brand of premium cannabidiol (CBD) products are now the exclusive CBD-infused beverage brand and health supplement products represented by Natural Specialty.
OKI is Phivida's novel brand of CBD-infused iced tea, flavored infused waters, tinctures and capsules. Phivida says that they are the first CBD brand company to cross-over into national maninstream distribution in the U.S. The distribution network of Natural Specialty is expansive, reaching over 2,400 retail locations and brand name stores like Whole Foods Market, Sprouts Farmers Market and National Coop Grocers.
Further, the agreement provides for the opportunity to utilize Acosta's massive sales network of over 25,000 stores that includes conventional grocery stores such as Walmart, Target, Kroger, Publix and more.
Phivida is hoping to see its OKI brand achieve commercial success like other brands of Natural Specialty, including Kashi, Evolution Fresh juices and Silk drinks, to name a few. In-store marketing campaigns, merchandising and other programs are all being planned in a bid to maximize sell-through of OKI once it hits store shelves.
"This exclusive national agreement with Acosta and [National Specialty Sales] is a major growth opportunity for Phivida, and a significant milestone for our industry overall," said Jim Bailey, Phivida President and CEO, in this morning's news release.
With an hour left in Wednesday's trading session, shares of PHVAF are up 25.7% to $0.605 following the distribution news.
