So far this year, one of the most significant themes in the cannabis industry has been the increasing demand for hemp and cannabidiol (CBD) products. Earlier this year, CVS Health Corporation (CVS) reported that it would start selling CBD products and this was a major milestone for the cannabis industry. The day after this announcement, Walgreens Boots Alliance, Inc. (WBA) also reported that it would start selling CBD products and we have also seen big box retailers like Target and Walmart make similar announcements.
Several European counties have already legalized hemp, and this has become a global trend. Last year, the World Health Organization recommended that CBD be de-scheduled across 194 nations. These regulatory changes could pave the way for CBD to become a legal natural supplement globally and this would be a major catalyst for companies focused on this burgeoning market.
Although the passage of the 2018 Farm Bill was a major catalyst for the companies that are levered to the CBD market in the United States, it is important to understand that the CBD market represents a global opportunity. During the last year, the European CBD market has recorded massive growth and we are bullish on this market. With a population that is almost twice the size of the United States, the European CBD market represents a massive opportunity, and this is an area that we have focused on.
Earlier last month, we published an article on Geyser Brands (GYSR.V) which is focused on the development of a variety of health-based CBD consumer products for various industries (nutraceutical, cosmetics, food & beverage, and pets). The company plans to establish retail and direct-to-consumer distribution for its health, pet, cosmetics, and beverages brands in North America, in the European Union, and in Asia.
Geyser Brands: A Company with Massive Growth Prospects
When it comes to being levered to emerging CBD markets, Geyser Brands plans to start with hemp-derived products in jurisdictions where CBD remains under scrutiny and will seek to acquire consumer health and wellness brands that plan to transition into the hemp and CBD markets. So far this year, consolidation has been a major theme in the CBD market, and we expect Geyser Brands to be a beneficiary of this.
During the last year, Geyser Brands has reported several significant developments and has massive potential catalysts for growth. One of the potential growth drivers will be the closing of the acquisition of Solace Management Group, which is focused on the pet, cosmeceutical, and nutraceutical markets. During the 2018 fiscal year, Solace generated almost $2 million in revenue and recorded approx. $1 million of gross profit.
Once the Solace acquisition is complete, Geyser Brands plans to capitalize on the global market through retail and digital direct-to-consumer channels and will launch its hemp-infused products in the United States, Europe and Asia, and its CBD-infused line of products in jurisdictions where it is legal. We believe that this acquisition will quickly prove to be accretive for Geyser Brands and find this to be significant.
One of the reasons we are bullish on Geyser Brands’ leverage to the global CBD market is due to its focus on constructing a state-of-the-art GMP compliant manufacturing facility which will provide in-house formulated products for company branded products and white label products. Once this facility is operational, Geyser Brands will be able to export products to international markets and this could prove to be a major potential catalyst.
An Execution Story to be Watching
Last month, Geyser Brands engaged Anthony Webb, Founder and CEO of Brandeavour, as the company’s consultant of record for strategic branding and creative counsel. He represents a strategic addition to the team due to his proven track record of success when it comes to working with international bodies as well as leading global brands across luxury products, sports, music, entertainment, and business.
The services to be provided by Brandeavour will include overall brand direction for Geyser Brands and the commercialization of new brands. Brandeavour will work alongside GetFresh Ventures, a strategic partner that will be providing data-driven digital growth services on developing new channels to market for Geyser Brands. Combined with the data-driven digital strategy frameworks supported by GetFresh Ventures, the company is perfectly positioned to develop a highly differentiated and consumer-focused approach to brand growth and development.
When we look at Geyser Brands, we see a company that has been flying under the radar and has significant catalysts for growth. The company is currently negotiating non-binding letters of intent with several United States brands that are looking for Canadian distribution and is also negotiating joint ventures with entities in China and Japan for the commercialization of its hemp products.
Geyser Brands is led by a management that is laser focused on execution and we are bullish on the growth prospects associated with its current initiatives. Over the next year, we expect to see the company expand into new markets, release new products, and secure massive distribution in emerging markets. To learn more about this opportunity, please email email@example.com.
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