CBD is seeing MONUMENTAL demand, creating INCREDIBLE opportunity for HempFusion (TSXV:CBD) – one of a select few companies to offer US FDA drug listed topicals.
Over the last year, total sales of such consumer CBD products just in the U.S. came in at approximately $1.2 billion, according to Nielsen Global Connect.(5)
But that’s just the start.
With consumers becoming far more dependent on CBD with increased stress and anxiety with the pandemic, analysts at Nielsen say sales could reach $1.7 billion to $2 billion just this year.(5)
Nielsen also estimates that by 2025, CBD products could generate approx. $6.9 billion in sales.(5)
But that may be a low estimate.
Analysts at Cowen say sales could reach $16 billion by 2025 with health and wellness products leading the way – and with beverage, food, and beauty playing a big role.(6)
Coupled with rapidly changing consumer attitudes toward CBD, and sizable demand from consumers, retailers can’t even stock shelves fast enough, including Neiman Marcus, Sephora, Vitamin Shoppe, Kroger, Barney’s DSW, Sephora, CVS, American Eagle, and Walgreen’s.
Better yet, legalization is seeing broad support in the U.S.
With no debt, and the second largest cash position in the sector, HempFusion is a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition.
At the moment, it distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to approximately 4,000 retailers across all 50 states of the United States and select international locations.
Built on a foundation of regulatory compliance and human safety, HempFusion’s diverse product portfolio comprises 46 SKUs including tinctures, proprietary FDA Drug Listed Over the Counter (OTC) Topicals, Doctor/Practitioner Lines and more.
HempFusion is also a board member of the US Hemp Roundtable – a coalition of leading hemp companies and organizations committed to safe products, and the advancement the industry responsible manner.
Plus, HempFusion’s wholly-owned subsidiary, Probulin Probiotics is one of the fastest-growing probiotics companies in the United States according to SPINs reported data.
FDA Drug Listed OTC topical products allow for substantiated health claims, allowing for even greater trust among millions of potential consumers.
Plus, the company’s products meet the compliance standards for larger national retailers, which could lead to substantial growth in Big Box stores.
Top OTC products include:
The company’s Probulin line addresses a broad set of consumers, offering daily care, women’s health, total care, and children’s products with probiotics and digestive enzymes.
That gives the company access to a potential $7 billion market, and steady growth of 24% through 2024. All thanks to research that shows a strong relationship between gut flora (or gut microbiota – the micro-organisms including bacteria, archaea, and fungi that live in the digestive track of humans and other animals) and our health.
The best part – HempFusion’s Probulin may allow the company to enter retailers that may not currently carry CBD products, which may establish, develop, and build relationships.
In Europe, says the Brightfield Group, the CBD market generated $318 million in 2018. That number is expected to grow by over 400% by 2023.(10)
Canada is seen as one of the world leaders in the Medicinal Cannabis industry and also provides a relatively large singular market with a population of approximately 37 million.
The Latin America cannabis market is on pace to be one of the most exciting in the world. In fact, it has the potential to become one of the largest markets in the world with an estimated value of $9.8 billion, according to New Frontier Data.(11)
That’s creating even more opportunity for HempFusion.
At the moment, HempFusion and Probulin probiotic products are selling across Europe (Ireland & UK), and Probulin has purchase orders and/or is selling in the Middle East, South Korea, China, Mexico, and India.
The company is well-positioned in the CBD gummies market, too.
A market that could be worth $6.94 billion by 2025, according to Grand View Research.(12)
HempFusion launched its convenience strategy in July 2020 to distribute its family of brands. This includes the upcoming launch of HempFusion’s 10mg Plant-Based CBD Vegan Gummies.
Successful companies tend to possess common traits, and one of those traits is a strong management team. HempFusion has that ground covered with extensive leadership, finance, legal, CPG, governance, and M&A experience that can penetrate major channels, including Big-Box, Convenience, Natural, and Doctor/Practitioner.
DR. JASON MITCHELL, N.D.
CHIEF EXECUTIVE OFFICER
Dr. Mitchell is a naturopathic doctor and has developed over 300 products as the Chief Science Officer at Country Life Vitamins before its acquisition by Kikkoman’s in 2006. Jason maintains a substantial retailer rolodex developed over a 20+ year career.
CHIEF REVENUE OFFICER
25+ years’ experience driving CPG sales in major retail channels (Big Box + Convenience + Club). Directed a national sales team for Abbott Laboratories, and has worked with every single large US retailer over his 25+ year career. Jon is an expert in introducing new innovative products into traditional sales channels. Mr. Visser has the track record, network and product knowledge to significantly expand HempFusion’s distribution.
CHIEF MARKETING OFFICER
Developed significant retailer relationships while at Barlean’s, one of the most successful supplement brands in America. Ms. Lessard was responsible for overseeing the strategic entry of Barlean’s, a company with over 100+ total SKU’s, into the CBD category. Ms. Lessard is the President of the US Hemp Roundtable representing HempFusion. 25+ years’experience branding products to drive sales and build long-term brand loyalty.
DIRECTOR OF DOCTOR/PRACTITIONER
Ms. Angelini has 25+ years’ experience as a licensed practitioner, traveling the United States as a lecturer, product manager, and opening doors to the largest doctor/practitioner networks in America. Substantial relationships and sales rolodex in the doctor/practitioner channel. Over 1500 natural health and healing lectures completed in the US and abroad.
Along with the management team is a strong financial team.
CHIEF COMMERCIAL OFFICER
BRUCE VALENTINE, Jr.
CHIEF FINANCIAL OFFICER
With pending FDA regulation looming, it is believed that only a few well capitalized companies will emerge as leaders and dominate this dynamic sector.
Source 1: https://www.hempfusion.com/corporate-information/
Source 2: https://www.bloomberg.com/news/articles/2019-02-25/much-hyped-u-s-cbd-market-may-reach-16b-by-2025-cowen-says
Source 3: https://www.hempfusion.com/corporate-information/
Source 4: https://www.grandviewresearch.com/press-release/global-cbd-gummies-market
Source 5: https://hempindustrydaily.com/exclusive-cbd-demand-could-drive-2020-sales-of-2-billion-with-threefold-growth-projected-by-2025/
Source 6: https://www.bloomberg.com/news/articles/2019-02-25/much-hyped-u-s-cbd-market-may-reach-16b-by-2025-cowen-says
Source 7: https://www.pewresearch.org/fact-tank/2019/11/14/americans-support-marijuana-legalization/
Source 8: https://news.gallup.com/poll/243908/two-three-americans-support-legalizing-marijuana.aspx
Source 9: https://hempsupporter.com/about
Source 10: https://www.brightfieldgroup.com/press-releases/europe-cbd-market-through-2023
Source 11: https://www.globenewswire.com/news-release/2019/02/13/1724679/0/en/13-Million-Annual-Cannabis-Users-and-a-9-8B-USD-Cannabis-Market-in-Latin-America.html
Source 12: https://www.grandviewresearch.com/press-release/global-cbd-gummies-market