- HempFusion Wellness Inc. has been eying the Asian market for some time, as indicated in its latest operational update to investors
- With the recent announcement that it had received conditional approval to launch its CBD products on Tmall Global, HempFusion looks set to meet its other expansion targets
- The announcement follows a similar move by its wholly owned subsidiary, Probulin Probiotics, and confirms HempFusion’s reliance on Probulin as a gateway to international markets
HempFusion Wellness (TSX: CBD.U) (OTC: CBDHF) (FWB: 8OO) recently announced it had received conditional approval to launch its CBD products on Tmall Global, the world’s largest cross-border online marketplace. This latest move by the Denver-based leading health and wellness CBD company is backed by a well-thought-out expansion strategy as it follows a similar move by its wholly owned subsidiary, Probulin Probiotics, LLC.
In a sponsored Financial Post article earlier this year (https://cnw.fm/GH8MJ), Dr. Jason Mitchell, N.D., HempFusion’s co-founder and CEO noted that Probulin serves as a strong foundation for HempFusion to increase its domestic and international distribution. “Probulin’s distribution presence in our key markets gives us a lot of runway opportunities to execute our plan to expand HempFusion into multiple markets that are not readily available to other CBD companies,” he stated.
The expansion into the Asian market, which has long been in the company’s sights as indicated in an operational update to investors released April 5 (https://cnw.fm/EDFcU), demonstrates the reliance on its subsidiary very clearly because back in March, HempFusion launched Probulin products on Tmall Global (https://cnw.fm/qlPKP). Thus, based on the CEO’s statement, the earlier launch was to pave the way for the entry of the parent company’s products into the Asian market.
With the conditional approval given, HempFusion’s OTC topicals, including Acne Relief, Eczema Relief and Sports Pain Relief Creams, Pain Relief and Sports Pain Relief Balms, Pain Relief Gel and Wound Ointment, are expected to launch on Tmall soon, with more products expected to follow.
“To be one of the first publicly traded CBD companies on the platform provides us with significant competitive advantages that have the potential to add considerable revenue to our company,” said HempFusion’s Chief Revenue Officer Jon Visser of the approval (https://cnw.fm/V8zYU).
On his part, Dr. Mitchell noted that introducing the company’s products on Tmall, the premier Asian e-commerce platform, had been a major focus in its strategic expansion plan. Notably, Tmall will offer HempFusion the potential of reaching more than 750 million new consumers.
“We are now accessing one of the largest online consumer groups in the world with products formulated with approved drug monograph ingredients such as menthol for ailments such as pain. These products have already performed as best in class in select retailers in the United States, and we’re excited to see that follow through in the world’s largest market,” he continued.
The latest step is welcome news for a company that experienced a tumultuous 2020, per the operational update. “COVID and continued lack of clarity from the FDA related to official regulatory guidance for CBD used in dietary supplements, foods and beverages has made 2020 a challenging year. However, these challenges have led to strategic changes, establishing the foundation for HempFusion to succeed in 2021 and beyond,” the update reads.
The well-thought-out expansion into the Asian market, backed by the positioning of Probulin as a foundational component in its parent company’s expansion drive, is perhaps one of the strategic changes HempFusion has made. In other equally positive news, CBD.U became the first U.S.-based CBD and wellness products company to list directly on the Toronto Stock Exchange (“TSX”) following the completion of a US$17 million initial public offering (“IPO”) in January 2021. Additionally, the company has witnessed an increase in online sales from 6% to 24% in the few months preceding the April 2021 update.
The update also noted that HempFusion was targeting international markets such as Latin America, Canada, India, China, and the rest of Europe (besides Ireland and the UK, where the company has already set up shop). With the launch into China already cast in stone, HempFusion looks focused on meeting its expansion targets and generating more revenue as a result. “The future is bright,” the operational update concluded.
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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