Last week, HempFusion Wellness Inc. (TSX:CBD.U) (US:CBDHF) (FWB:8OO) announced a major milestone for the business and launched certain products on Alibaba Group Holding’s (Nasdaq: BABA) Tmall Global.
The reason we find the development to be a game-changer is due to the reach that Tmall has. The platform is the world’s largest cross border online marketplace and it reaches more than 750 million consumers in mainland China, Hong Kong, Macau and Taiwan.
During the last year, we have noticed a shift with how cannabidiol (CBD) is viewed by countries in southeast Asia. This is a relatively untapped market and we are favorable to the opportunity for HempFusion to gain a first mover advantage on the world’s largest cross border online marketplace.
HempFusion is a company that we have been following since 2019 and are impressed with how the health and wellness company has advanced since then. The company is made up of two primary business units, HempFusion and Probulin Probiotics. We consider HempFusion to be a multi-faceted growth story that is targeting emerging markets across the globe and believe the business is in the early innings of a major growth cycle.
We consider Probulin to be a trojan horse type of asset for HempFusion’s CBD business. Since probiotics are sold all over the globe, HempFusion will be able to lay the necessary infrastructure and distribution in place to expand the business once regulations allow for the sale of CBD products.
Over the next year, we expect the relationship with Tmall to serve as a significant revenue driver and will monitor how this side of the business ramps up. We consider the launch to be strategic since it provides a tremendous opportunity to reach one of the largest online consumer bases in the world.
In the next week, HempFusion expects its Probulin products to be available for purchase on Tmall. We consider the timing of the launch to be strategic since the products are expected to become available ahead of one of China’s largest single day shopping extravaganzas. We expect to see strong demand for HempFusion line of Probulin products and forecast it having a positive impact on top-line revenues.
In 2020, health supplements and probiotics were among the most popular categories on the Tmall platform. We believe that timing is everything and are favorable to the direction the management team is bringing the business. By conducting a launch ahead of singles day, we anticipate HempFusion seeing a large spike in revenues and will monitor how many consumers become repeat buyers.
Recognized as one of the fastest-growing probiotics brands in the United States by SPINs syndicated data, HempFusion’s Probulin products are available in eight countries around the world and represent the next generation of probiotics for digestive health and immune support based entirely on cultured food and scientifically studied strains.
Currently, HempFusion distributes its family of brands (i.e. HempFusion, Probulin Probiotics, Biome Research, and HF Labs) to approximately 4,000 retail locations in the US and select international locations. We believe the future is bright for HempFusion and are excited about the opportunity due to the continued execution, the global reach of the product line, the strength of the balance sheet, and the potential growth catalysts.
Earlier this year, HempFusion completed a go-public transaction and believes the opportunity is flying under the radar. If you are interested in learning more about the leading health and wellness company, please send an email to firstname.lastname@example.org with the subject “HempFusion” to be added to our distribution list.
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