Cannabidiol (CBD) already has a presence in U.S. retail outlets but it seems likely to become omnipresent over the course of 2019. Several partnerships have already been announced this year, from plans to develop CBD products for specific chains to the launch of new retail outlets to the placement of existing products in more outlets. Diverse CBD products should be available in all states.
Cannabidiol (CBD) already has a presence in US outlets. Several partnerships have already been announced this year. From plans to develop CBD products for specific chains to the placement of existing products in more outlets. Though the nation may not be fully blanketed by the end of the year, diverse CBD products should become available.
Availability of the CBD products
Martha Stewart announced that she will be advising Aurora Cannabis, a sign that CBD will be everywhere in 2019. She will work on the development of a “broad new line of hemp-derived CBD products. The deal was engineered with the help of Sequential Brands Group which now represents the Martha Stewart brand.
This high-profile announcement will lead to nationally distributed products and signals more CBD deals ahead in the retail sector. Even if the partnership falls apart, which seems unlikely, it sets the precedent for the involvement of mainstream brands in the sector. Here are more 2019 deals that indicate what is ahead.
Green Growth Brands
Green Growth Brands began the year with the agreement to sell Seventh Sense Botanical Therapy products. They will go in DSW shoe stores across the nation. Seventh Sense creates hemp-derived CBD personal care products and its products will be available initially in 96 locations. A test program was conducted last year in 10 stores and was said to exceed expectations.
In February, Green Growth Brands and dominant U.S. mall owner Simon Property Group announced a partnership to open over a hundred CBD stores. Green Growth Brands will open the stores under its Seventh Sense brand. But Green Growth Brands is not stopping there. CEO Peter Horvath said that talks were underway with “five other major real estate developers.”. The company plans to have a total of 300 locations in operation by the end of the year.
Also, in February, Green Growth Brands subsidiary GGB Beauty announced a licensing partnership with Authentic Brands Group to develop CBD-infused “personal care products designed for active adult men and women.” The products will be marketed under the Greg Norman brand.
The legendary golfer referred to the “significant wear and tear” he experienced in pro sports as an impetus for entering the partnership. Though numerous other athletes have become advocates for cannabis or partnered on the development of cannabis products, Greg Norman is arguably the highest profile athlete to enter such an agreement to date.
Canadian cannabis company Tilray Inc (NASDAQ:TLRY) also announced a deal with Authentic Brands Group back in January. The partnership is much broader than that of Green Growth brands and includes a payment agreement starting at $100 million that could rise to $250 million in cash and stock. Tilray will receive “up to $10 million annually for a decade” and “up to 49 percent of the net revenue.”
The partnership has worldwide potential but will begin in the U.S. and Canada with a focus on CBD products in the States. Products could include such things as a Nine West foot cream, a tennis elbow CBD cream or even a “Juicy Couture line of beauty and cosmetics products infused with CBD.” Authentic Brands owns or represents over 50 celebrity brands and retail outlets. The initial announcement focused only on retail brands.
Punching above its weight, Diamond CBD, a wholly-owned subsidiary of PotNetwork Holdings, Inc. (OTCMKTS:POTN), recently announced an expansion of its retail presence to over 10,000 retail outlets nationwide. Diamond CBD produces and markets a wide range of hemp-derived CBD products through retail partnerships and its own e-commerce operation. Such CBD-infused products include self-care and beauty products, edibles, and beverages. Outlets range from mall kiosks to convenience stores as well as tobacco and vape shops.
Diamond CBD has also been presenting its products to large drug store chains, which could dramatically increase its national presence. It is also likely to raise its visible presence at retail with the recent introduction of Brain Chill CBD Slushy machines. The LED-lit clear bowls featuring brightly colored slushy mixture will be hard to miss.
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