HEMPFUSION WELLNESS (OTC:CBDHF | TSE:CBD.U | FWB:8OO)
CBD.
Most of us wouldn’t have heard of it a decade ago.
We almost certainly wouldn’t have known about everything it might be capable of doing.
This key non-psychoactive substance, found in cannabis, is now unavoidable.
From the daily headlines detailing new research into its therapeutic qualities…
To the cannabidiol-infused oils, tinctures, and capsules lining the aisles of our local drug stores and big box retailers…
CBD has become one of America’s hottest and fastest-growing alternative health trends.
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Just look at how quickly annual product sales have grown.
According to Statista, they sat at a mere US$108 million back in 2014.
Fast forward to 2020, and they multiplied over 11 times to US$1.2 billion.
Total US CBD product sales from 2014 to 2022 (Source: Statista)
This momentum is only expected to accelerate, as well.
Currently, only CBD oil and cosmetics are federally legal in all 50 US states.
However, there is a widespread expectation that the Democrats will open up the market fully.
If products like CBD drinks, food, and dietary supplements hit shops, some predict that the market’s value could soar to as much as US$20 billion by 2024.
But there’s a catch.
Bringing in new federal laws could bring in new federal regulation. The U.S. Food and Drug Administration will almost certainly crack down on CBD products that fall short of the highest production standards.
In other words, a storm is coming and those companies that are not prepared could quickly be wiped out.
That’s why investors would do well to keep a close eye on the companies that have dedicated the right level of time, effort and money on developing quality products.
Companies well-positioned to thrive and take market share in the rapidly-growing and increasingly regulated CBD space…
Companies like HempFusion Wellness.
A CBD company built for the future
HempFusion has created a range of products using the highest-quality CBD, from DNA-verified, EU registered, non-GMO, organic industrial hemp.
It has invested millions of dollars into meeting regulatory standards both in the US and internationally.
And it has a cashed-up, long-term debt-free balance sheet, controlled by an expert leadership team with decades of business, science, nutrition, and product development expertise.
HempFusion is so well prepared for the brave new world in CBD that it’s one of very few companies that can actually make genuine health claims on many of its products.
For most CBD companies, that is not possible.
And it’s just one of several competitive edges that have allowed HempFusion to establish a strong presence in traditional American retail channels.
It currently stocks 46 products in around 4,000 retail locations like Sprouts, Vitamin Shoppe and Whole Foods.
Alongside OTC Drug Listed topicals – which includes pain, eczema, and acne relief creams – this range includes CBD liquid hemp extract and CBD capsules for sleep, stress, and energy.
Some of the retailers that stock HempFusion’s range of CBD and probiotic products
HempFusion is also making a significant investment into Direct To Consumer marketing / and e-commerce, having relaunched its website last year with an emphasis on driving recurring revenue and customer loyalty.
But the potential growth doesn’t stop there.
HempFusion’s focus on quality and compliance is driving its entry into new sales channels its competitors could struggle to crack.
Take Big Box Retailers like Walmart, Publix, and CVS. These firms only buy from suppliers who can meet substantial delivery volumes, maintain absolute product consistency, and – most importantly – adhere to the strictest of regulatory parameters.
Most CBD operators are a long way from ever being able to meet these thresholds, but HempFusion is a different kind of business entirely. It recently became intently focused on launching its hemp-based CBD products into the enormous market.
Meanwhile, in the convenience market, HempFusion is targeting 27,842 immediately-addressable stores under the guidance of its CRO and retail veteran Jon Visser.
Finally, in the US$2bn-a-year doctor/practitioner market, HempFusion is negotiating and has already executed supply agreements that could put its products in front of some 27,000 medical professionals.
Looking To Expand Internationally
HEMPFUSION WELLNESS (OTC:CBDHF | TSE:CBD.U | FWB:8OO)
HempFusion’s determined assault on the US market is well underway, but the company also has much greater ambitions. It has firmly set its sights on global dominance.
You see, HempFusion plans to deploy what it calls a “trojan horse” strategy into foreign markets using its range of “Probulin” probiotic products.
HempFusion’s Probulin product range
Probulin is one of HempFusion’s biggest revenue generators in its own right.
It’s one of the fastest growing probiotic lines in the natural product industry, according to SPINS syndicated data, actively moving in on the global probiotics market valued at some US$6.1 billion as of 2019.
But the really exciting point is that the range does not contain any CBD whatsoever.
Why is this so significant?
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It means the Probulin product line can be sold to retailers in countries where cannabidiol is either entirely prohibited or permitted only in limited circumstances.
By using Probulin to establish relationships with retailers in these markets, HempFusion could be well positioned when the local rules and regulations concerning CBD catch up with the US.
It takes patience and deep pockets to break into new markets.
However, as an approved vendor, HempFusion may be able to roll out its CBD range across its established retail network with more ease than other competitors.
With a growing global footprint, the potential is enormous.
Right now, the company’s focus is on Europe, where CBD approval is advancing at pace. Notably, HempFusion has filed its Novel Food Application with the FSA in the United Kingdom, which represents the first step in the path to allowing CBD products on the country’s shelves l prior to expansion into the broader European market.
As the wave of CBD-legalisation sweeps over the world, HempFusion is primed for strong growth.
With financial firepower, an exceptional leadership team and an unparalleled product, this firm is the one of the most exciting stocks at the vanguard of the Green Health Revolution.
