How Retail and E-commerce CBD Outlets are Generating Revenue - (OTC: $HIPH) (OTC: $PURA) (OTC: $MCOA) (OTCQB: $RMHB) (TSX: CRON.TO) (NASDAQ: $CRON)
Point Roberts, WA and Delta, BC - August 15, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot focusing on the growth of retail and e-commerce CBD sales in the US which are beginning to generate early revenues for hemp/CBD companies.
A recent article in Forbes discussed the uptake of retail sales in the CBD space. "The CBD market is moving towards mainstream retailers and is projected to be over $20 billion in sales by 2024. Walgreens, Sprout, CVS, Ulta Beauty, GNC Holdings, Urban Outfitters are just a handful of retailers offering or looking to offer, CBD products to consumers."
Cronos Group ( TSX: CRON) (NASDAQ:CRON) , a Toronto-based marijuana company, predicts CBD customers in the United States will be the "largest contributor" to its sales over the next couple of years.
The comments came as Cronos released its first earnings report since the company announced plans to spend $300 million in the U.S. hemp market through the acquisition of four operating subsidiaries of Los Angeles-based Redwood Holding Group.
"It's fair to estimate that the U.S. CBD market will likely be the largest contributor (to sales) over the next year or two," Cronos CEO, Michael Gorenstein said.
American Premium Water Corporation (OTC: HIPH) announced that it is reaffirming its $1 million revenue guidance for fiscal year 2019. The projection is based on existing orders and future orders in the Company's pipeline from its LALPINA CBD water, partnerships and co-branded product leveraging the Company's proprietary Hydro-Nano technology, expanded distribution of Vanexxe, and other initiatives in the pipeline; a more comprehensive breakdown:
- Two-Container Order: the Company received a two-container order from a distributor in the UK. The Company has begun delivery of order
- US Distributors: the Company is in discussions with distributors in New York, New Jersey, Pennsylvania, Florida, California, Missouri, Nevada, Arizona and Oklahoma.
- International Distribution: The Company is engaged in discussion with distributors in Mexico, Columbia, Australia and Thailand
- CBD Pet Water: The Company's joint venture with LinkRes Pets is slated to launch for sale this August
- Hanlons Brewery: the Company is finalizing testing with Hanlons Brewery and is looking to roll-out the CBD infused beer by the start of the 4th quarter
- THC Formulation: the Company is looking to launch its THC version of its proprietary Hydro Nano formulation by the end of this year in California
- Vanexxe: the Company is in discussions with several big box retailers for retail and e-commerce distribution.
- Partnerships and JVs: the Company has been engaged in working with other partners on marketing, branding, and distribution in the CBD and non-CBD sectors.
American Premium Water Corporation CEO, Ryan Fishoff, commented: "The Company is confident that it will achieve its $1million revenue guidance for the year. Our goal is to surpass this number and I believe we are on track to accomplish this. Despite the volatility in the market, nothing has changed; the Company remains committed to executing its business plan and achieving short and long term benchmarks. We have begun the two year audit with Weinberg & Co. and are working towards becoming fully reporting by the end of the year. There is a lot in the pipeline; management is working feverishly to get all these initiatives off the ground as investments that the Company has made in acquisitions, intellectual capital, and products are beginning to pay off. Aside from everything that's been discussed in the public domain, there are other partnership and acquisition discussions that are currently underway. It's a very exciting time for the Company; as progress is made, I look forward to updating shareholders on developments as soon as I'm able to."
LALPINA CBD water can now be purchased online by visiting https://www.singleseed.com/product/lalpina-cbd-water-6-pack/
Puration, Inc. (OTC: PURA) and Kali-Extracts recently confirmed adding CBD infused tea to its new line of CBD beverage partnerships.
Last week, PURA and KALY published a management presentation to provide shareholders with more details on PURA's recently implemented program to introduce CBD infused versions of existing third-party beverages. PURA has recently announced plans to introduce a CBD infused beer in partnership with an existing beer producer. In similar fashion, PURA is partnering with an existing coffee producer to introduce a CBD infused coffee. In conjunction with the presentation published last week, PURA announced a third partnership to develop CBD infused tea. Additional partnerships are in the works.
PURA is a leading CBD infused beverage company having produced over $1 million in CBD beverages in the United States last year. PURA has targeted $4 million in sales for 2019. The presentation is included in its entirety on the company's website.
PURA works closely with its partner KALY, the owner of a US-Patented cannabis extraction process in the implementation of the plan to introduce infused versions of existing beverages.
MARIJUANA COMPANY OF AMERICA INC. (OTC: MCOA), an innovative hemp and cannabis corporation, and joint venture partner Global Hemp Group Inc. announced that their joint venture subsidiary, Covered Bridge Acres Ltd. has started generating revenue through operations at its hemp farm in Scio, Oregon.
Through a combination of the sales of raw biomass, plantlets, CBD crude oil and CBD distillate produced from various processing test runs, along with other farm operations, CBA generated $525,500 in its first year of operation.
In its most recent transaction, CBA sold 10,000 lbs of shucked biomass to an Oregon extraction facility for $400,000. The CBA team is currently working with this party and a number of others, to complete the purchase of the remaining inventory.
Initially, CBA was expecting to monetize the 2018 hemp biomass after entering into a processing agreement with Richardson Gap Farm LLC (RGF), as disclosed on May 18, 2019. However, RGF was unable to process CBA's biomass due to unforeseen issues with its processing equipment. Although RGF produces high quality distillate, CBA was no longer willing to delay the monetization of its biomass any further and decided to sell the biomass to another extractor. With multiple offers on the table to purchase the biomass, CBA shucked the biomass (removed stalks and stems) and completed the sale.
CBA still has approximately 4,000 lbs of un-shucked biomass out for processing into distillate by additional extractors, and will split the final product on a 50/50 basis with its joint venture partner, Marijuana Company of America, Inc. (OTC: MCOA). Once processed, it will be sold along with inventory on hand (8 kg of 92% distillate that was processed by RGF from crude oil CBA received from other processors test runs). Recent sales of this type of distillate have been in the $4,000 per kg range.
Innovation and mechanization are key components to reducing labor costs on the farm. In preparation for the handling of this year's harvest, the CBA team specifically designed a shucking machine to remove the flowers and leaves from the stalk and stems and is in the process of fabricating a prototype, having reserved a small amount of biomass to test the equipment. Once shucked, the biomass will be processed into distillate for sale on the open market later this summer.
Rocky Mountain High Brands, Inc. (OTCQB: RMHB), a fully reporting lifestyle brand management Company specializing in high-quality health and wellness products, announced that it has entered into an agreement with Water Event Pure Water Solutions of Carrollton, Texas to distribute hemp-derived CBD products to its expanding 15,000 home, office and retail customer base.
Established in 1971, Water Event is independently owned and operated by Brian Rose, who has been in the home and office water delivery business for over 34 years. The corporate office, manufacturing facility and retail store are in Carrollton, Texas. The company also operates warehouse distribution facilities in Houston, Austin, and Sherman/Denison. Water Event is also in the water filtration and water bottling business.
Michael Welch, President and Chief Executive Officer of Rocky Mountain High Brands said, "Water Event's fleet of delivery trucks service 15,000 customers in the highest population growth areas in Texas, including Dallas/Ft. Worth, Houston, Austin/San Marcos, San Antonio, and Sherman/Dennison. Their customers include office buildings, residential homes and select retail establishments. The Company's agreement with Water Event includes our HEMPd Wellness for Life Products:
- Water Soluble Solution
as well as our HEMPd CBD-Infused Flavored Waters, our Rocky Mountain Hemp Seed Extract-Infused beverages, and our Rocky Mountain High Hemp-Infused Energy drinks."
Mr. Welch continued, "Water Event has solidified its place as the premier home and office delivery service in Texas because of their quality of products and extraordinary customer service. For us to be able to sell our hemp-derived CBD products alongside someone with Mr. Rose's credentials and customer base puts us on the forefront of a rapidly growing Texas market."
Mr. Welch concluded, "We are pleased to have the opportunity to expand our relationship with Water Event and Mr. Rose. In fact, we have our next bottling run of Eagle Spirit Spring Water scheduled for the week of August 5, 2019 at Water Event."
Brian Rose, owner of Water Event, stated, "Now that Texas has passed a law allowing the sale of CBD oil, there is a tremendous opportunity in this exciting product category. It is important to have the right CBD products on my trucks. I chose Rocky Mountain High Brands due to their high standards and involvement with the U.S. Hemp Roundtable and that gives me confidence that their products are safe, legal, and are some of the best in the industry. By partnering with Rocky Mountain High Brands, Water Event is harnessing the expertise and capabilities of a dynamic young hemp company to accelerate my company's growth."
As more retailers look to expand their CBD offerings and as brand awareness builds for online sales we should start to see if market projections meet reality over the next 4 quarters and if the revenue predictions based off of early demand will hold and rise as is expected.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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