CBD-infused products are under considerable consumer demand. In North America alone, the market could reach $24 billion in the next three years. Plus, as retailers and manufacturers attempt to meet consumer demand, it’s putting billions of dollars into play, says A.T. Kearney’s 2019 CBD Market Survey. “The survey finds that roughly 80 percent of consumers have used, or know someone who has used, cannabis, and that a similar percentage understands that cannabis health products can offer benefits. About 75 percent of respondents are aware that one of the cannabis plant’s two main components is non-psychoactive, and roughly that percentage would try legal, non-psychoactive cannabis products.”
All as people around the world wake up to the health benefits of cannabis, including the treatment of insomnia, stress, anxiety, pain, and even chronic issues, and as CBD finds its way into a variety of consumer product categories including food and beverage, pharmaceuticals, cosmetics, and health and wellness. With this growing trend, some of the top companies to keep an eye on are The Yield Growth Corp. (CSE:BOSS)(OTC:BOSQF), OrganiGram Holdings Inc. (TSXV:OGI)(NASDAQ:OGI), cbdMD Inc. (NYSE:YCBD), Green Thumb Industries Inc. (CSE:GTII)(OTC:GTBIF), and Ulta Beauty Inc. (NASDAQ:ULTA).
The Yield Growth Corp. (CSE:BOSS)(OTCQB:BOSQF) BREAKING NEWS:The Yield Growth Corp. announced it has received 23 new cosmetic notification numbers from Health Canada for its proprietary plant-based products to be launched under various brand collections. Yield Growth submitted products across a variety of cosmetic categories for notification to Health Canada in March. On June 24, 2020, Yield Growth received confirmation that Health Canada acknowledged and approved its submissions and provided CN numbers for the following 23 plant-based products: Eye Cream, Face & Eye Cleanser, Face & Body Mist, Nail Cuticle Oil, Deodorants (2 products), Shaving Cream, Beard Oils (2 products), Scented Roll-Ons (8 products), and Perfume Roll-Ons (6 products).
Yield Growth was founded on the belief that there had to be a better way - a philosophy of creating natural, plant-based products that work to improve health and wellness. Today, its brands, its products, and its people are all driven by the desire to play a role in enhancing people’s lives. Yield Growth selects plant-based, high-efficacy ingredients to offer products at accessible price points.
“We believe there is increasing value being placed by consumers on high-quality, plant-based, small-batch products that are responsibly made,” says Yield Growth CEO Penny White. “Leveraging the expertise, we have gained developing our extensive catalogue of proprietary plant-based product formulations, we believe we are well positioned to capitalize on this opportunity in the marketplace.”
“Your skin is an indicator of what's going on inside your body,” says Bhavna Solecki, Head of Product Development at Yield Growth. “Our mission is to restore the physical and emotional wellbeing of individuals with our pure, all-natural, and environmentally friendly wellness solutions.”
Consumers today are increasingly concerned about the potential negative side effects for individuals and the environment of chemicals and animal-based ingredients in cosmetics and other products. According to a 2018 report by Grand View Research, Inc., “the global vegan cosmetics market size is projected to reach USD $20.8 billion by 2025, progressing at a CAGR of 6.3% during the forecast period...consumers embracing natural substitutes such as plant-based personal care products is working in favor of the market.”
Other related developments from around the markets include:
OrganiGram Holdings Inc. (TSXV:OGI)(NASDAQ:OGI) announced that it has entered into a multi-year agreement for supply of dried flower to one of Israel’s largest and most established medical cannabis producers, Canndoc Ltd., a subsidiary of InterCure Ltd. Canndoc has been a pioneer in pharmaceutical-grade cannabis for more than 12 years. Its GMP-approved medical cannabis products are sold in pharmacies in Israel, and it holds international cultivation and distribution agreements in the European Union and Canada. Under the terms of Organigram’s supply agreement with Canndoc, the Company will provide a guaranteed 3,000 kg of high quality, indoor-grown dried flower product to Canndoc by December 31, 2021 for processing and distribution into the Israeli medical market, and may provide an additional 3,000 kg during the same time period at Canndoc’s option, subject to certain conditions. The agreement provides for a tiered pricing scheme and the exact value will vary depending on factors such as potency and product mix. The Agreement also contemplates, among other things, an opportunity for Organigram to launch branded medical products with Canndoc in the Israeli and EU markets, and grants exclusivity and related rights to Canndoc within the Israel market for a period of approximately 7.5 years. Activities under the Agreement are subject to compliance with all applicable laws, including receipt of all requisite approvals from Health Canada, the Israeli Ministry of Health, and any other applicable regulatory authorities.
cbdMD Inc. (NYSE:YCBD) reported its second fiscal 2020 quarter ended March 31, 2020 results. “We are pleased to report strong second quarter results, as well as provide a mid-quarter update on operations. We reported $9.4 million in quarterly net sales, a 67% increase over the same quarter last year. Our gross profit margin remains strong at 67% year-to-date and 70.9% for the quarter. Our overall direct to consumer e-commerce sales for the March fiscal quarter were $6.8 million or 72% of our total net sales, an increase of $2.5 million or 58% from the prior year’s quarter. Our B2B brick and mortar sales were $2.6 million or 28% of our total net sales, an increase of $1.2 million or 85% from the prior year’s quarter. Direct to consumer e-commerce sales for the six months ending March were $13.6 million or 70% of our total net sales, an increase of $8.9 million or 189% from the prior year period. Our B2B brick and mortar sales were $5.9 million or 30% of total net sales, an increase of $4.5 million or 321% from the prior year period. Our operating expenses for the March quarter were $12.2 million, of which approximately $665,000 was non-cash expenses, resulting in a cash use of $4.2 million for the quarter. Year to date our operating expenses were $24.8 million, of which approximately $1.5 million was non-cash expenses, resulting in a cash use of approximately $9.1 million for the six months ending March 31, 2020,” said Martin Sumichrast, Chairman and co-CEO.
Green Thumb Industries Inc. (CSE:GTII)(OTC:GTBIF) announced the expansion of its retail footprint in Illinois with the opening of Rise Niles, the company’s eighth store in Illinois and 45th in the nation, on May 28. This is the third adult-use only store Green Thumb has opened in Illinois this year. The company has opened a total of six stores across the country year-to-date. Green Thumb’s retail footprint in Illinois includes seven additional locations across the state: Rise Canton, Rise Effingham, Rise Joliet, Rise Mundelein, Rise Quincy, 3C Joliet and 3C Naperville. All but 3C Naperville offer adult-use sales. The company also has manufacturing facilities in Rock Island and Oglesby where it produces its high-quality branded products including Dogwalkers, incredibles, Rythm and The Feel Collection. “We are thrilled to open our eighth store in our home state of Illinois and look forward to being active community partners and good neighbors in Niles,” said Green Thumb Founder and CEO Ben Kovler. “Our team remains nimble, diligent, and committed to fulfilling our responsibility for a safe and successful adult-use program in Illinois. We have continued to move forward through the ongoing COVID-19 crisis to provide jobs and much needed access to well-being through the power of cannabis during these difficult times, as demonstrated by the opening of Rise Niles, our fourth opening since the crisis began. Our retail team has pivoted quickly and efficiently as regulations evolve and we are profoundly grateful for their dedication and service to our customers.”
Ulta Beauty Inc. (NASDAQ:ULTA) announced its partnership with clean beauty pioneer, Credo Beauty. The unique collaboration will offer Ulta Beauty guests an exclusive, clean beauty collection with more choices and unrivaled transparency related to sourcing, fragrance and ingredients. The clean beauty collection will premiere with eight exciting clean beauty brands, including EleVen by Venus Williams x Credo SPF, Innersense Organic Beauty and One Love Organics, among others, across 100 Ulta Beauty stores and on Ulta.com this fall. “As a trailblazer in ingredient authenticity and transparency, Credo Beauty is the perfect partner for us as we continue to evolve our clean beauty offerings for guests,” said Monica Arnaudo, chief merchandising officer. “We know ninety percent of Gen-Z shoppers intend to buy clean beauty products in the next year1; this first effort together, a clean collection handpicked by the experts at Credo, offers amazing products and more beautiful, clean possibilities for their needs.”
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