- “Private Label” division will be the sixth distribution channel for HempFusion and its family of products
- The 10 SKU deal totals approximately $250,000 and is expected to double in revenue size in 2021 and quadruple in 2022
- Company will be expanding its Topeka, Kansas facility to accommodate orders of this magnitude, requiring additional equipment and human capital
- Research and development teams are currently working with an additional 30 products under development for the HempFusion and family of brands
HempFusion Wellness (TSX: CBD.U) (OTC: CBDHF) (FWB: 8OO) recently announced that a leading national and publicly traded grocery retailer has awarded the health and wellness company a 10 SKU private label deal. The deal marks the official launch of the “Private Label” division, which will be the company’s sixth distribution channel, and the initial order totals approximately $250,000. It is scheduled to ship in July 2021 (https://cnw.fm/ihdVN).
The retailer, whose name was not disclosed due to existing non-disclosure obligations, represents a significant opportunity for the newly launched Private Label division. The 10 SKU deal was primarily due to the performance of HempFusion and its family of products within the retailer’s current distribution network.
“We anticipate that this initial $250,000 order is just the beginning and pending sell-through velocity and distribution, we expect this account to generate north of $500,000 for HempFusion in 2021 and upwards of $1,000,000 or more in 2022,” Jon Visser, HempFusion’s Chief Revenue Officer, said.
Additionally, Co-Founder and CEO Jason Mitchell, N.D., added that the company is honored to receive this award and looks forward to “how this has the potential to significantly contribute to the overall success of this particular retailer and HempFusion and its family of brands.”
To fulfill current and future orders of this magnitude, HempFusion is investing in additional structural support at its distribution facility in Topeka, Kansas. The expansion will include investments in additional equipment and human capital to ensure that the distribution is efficient.
The current family of brands distributed by HempFusion Wellness includes HempFusion, Probulin Probiotics, Biome Research, and HF Labs. These products are distributed to approximately 4,000 retail locations in the United States and select international locations.
The company’s current product portfolio consists of 48 SKUs that include tinctures, proprietary FDA Drug Listed Over-The-Counter (“OTC”) Topicals, Doctor and Practitioner lines, and much more. There are also an additional 30 products that are under development, which is the primary focus of the company’s research and development efforts. Probulin Probiotics is HempFusion’s wholly owned subsidiary, one of the fastest-growing probiotics brands in the United States.
The HempFusion focus for CBD is from the soil to the oil. Not all CBD is created equal, which is why HempFusion uses farming practices and extraction processes that result in a far superior whole food hemp extract. Grown in Europe to EU’s highest standards, HempFusion uses only five select, DNA-verified heirloom hemp strains. The company’s oil extraction uses a proprietary solvent-free CO2 method that yields CBD in a richer, purer oil that contains a higher content of the wide variety of other beneficial cannabinoids and plant compounds. Finally, HempFusion tests all products using an ISO-certified, independent laboratory to identify the cannabinoid and terpene profile, and confirm its organic farming practices have left each product free of herbicides, pesticides, and heavy metals. All of these reports are available to the public, and the batch report of each product sold is available to the consumer via a QR code on the package.
Leveraging this unique approach and product offering, the company is uniquely positioned to seize current and future growth opportunities on both the cannabidiol and probiotics markets. The global cannabidiol market size was valued at $2.8 billion in 2020 and is expected to grow at a CAGR of 21.2% during the forecast period of 2021 to 2028, resulting in a market size of approximately $13.4 billion in 2028 (https://cnw.fm/mb9lx). The size of the global probiotics market is also set to expand, from $48.38 billion in 2018 to about $77.09 billion by 2025, expanding at a CAGR of 6.9% during the forecast period (https://cnw.fm/TxHDj).
For more information, visit the company’s website at www.HempFusion.com/corporate-information.
NOTE TO INVESTORS: The latest news and updates relating to HempFusion are available in the company’s newsroom at https://cnw.fm/CBDHF
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