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CBD Infused Edible Market Projected to Be $4.1 Billion in 2019
PALM BEACH, Florida, April 23, 2019 /PRNewswire/ -- A recent article in Green Entrepreneur, a cannabis industry publication took a look at what should be the fastest growing cannabis products. They said: "Change comes fast in the cannabis business and entrepreneurs have to stay up-to-date on leading products to capitalize on the world's fastest-growing market. Back in 2014, whole flower was by-far the most popular product and, naturally, the technologies of choice for consumption were pipes, bongs and rolling papers. Just a few years later, the most popular cannabis products are different than they were when weed legalization started. Today, other methods of consumption are experiencing rapid growth and CBD has emerged as a distinct product." The article continued: "Cannabis edibles are an increasingly popular method of ingestion. Specifically, edibles sales reached over $1 billion in 2018 alone, and are predicted to be worth $4.1 billion by 2022. Active companies in the industry making moves to ready that include: IONIC Brands Corp., (CSE: IONC), Origin House (CSE: OH.CN) (OTCQX: ORHOF), Cronos Group Inc. (TSX: CRON.TO) (NYSE: CRON), Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF), Aurora Cannabis Inc. (TSX: ACB.TO) (NYSE: ACB).
Gummies have been the most popular edible in Colorado since 2016. Sales grew 53 percent between 2017 and 2018. Sales of infused gummies in Colorado were up 43 percent for Valentine's Day Weekend this year compared with sales from 2018, per data from point-of-sale system Flowhub. Both THC and CBD-infused gummies are growing in popularity, but CBD gummies are the hottest cannabis product right now. CBD gummies are so popular that they were the third most searched food term in the U.S. on Google in 2018 according to their annual search data report. It came in behind unicorn cake and romaine lettuce but ahead of keto pancakes and keto cheesecake." The article concluded: "Specifically, CBD gummy sales grew 925 percent in a year. Growth is expected to remain strong as legal hemp provides a legitimate source for CBD and ever more people learn about the benefits of taking CBD in its most popular form.
IONIC Brands Corp., (CSE: IONC) BREAKING NEWS: IONIC Brands enters the highly desirable edibles and infused products category with the signing of a definitive agreement (the "Agreement") to acquire Natural Extractions, Inc. d/b/a Zoots Premium Cannabis Infused Edibles ("Zoots"), based in Washington State.
In accordance with the terms of the Agreement, IONIC BRANDS will acquire Zoots for US$855,000 in cash and issuance of up to 10.7 million common shares of the Company upon closing of the transaction. In addition, the Company will issue up to 5.35 million common share purchase warrants to the shareholders of Zoots, with an exercise price of C$1.33 per share, exercisable over three years.
The acquisition adds Zoots' edibles and infused products to the IONIC Brands portfolio of consumer-focused cannabis concentrates. The Zoots products expands IONIC Brands product line and is expected to increase IONIC Brands' market share in the cannabis retail and wholesale industry. Zoots is a family-operated, state-of-the-art Washington-based edibles company, a first major player in the cannabis-infused edibles market. Zoots' product line includes drops, gummies, energy shots and hard candies manufactured to offer consistent and reliable dosing. Zoots is forecasting total revenues in 2019 to be approximately US$7.5 million with US$900,000 EBITDA cash flow. Zoots has consumer proven formulas which will be preserved by IONIC Brands.
Zoots Premium Cannabis Infused Edibles are available at licensed marijuana retailers in Illinois, Washington, Colorado and Massachusetts. Founded by brothers Dan, Michael and Patrick Devlin, Zoots products feature cannabis oil derived from the Zoot's proprietary Cypress ExtractionTM system and blended with other premium ingredients to deliver a safe, reliable and pleasant experience. Zoots emphasizes on product safety, quality and consistency, and offers products in serving sizes as low as 5mg THC enabling the consumer to easily manage dosage and control over serving size and effect. "Both Ionic and Zoots are trusted, family-run businesses and cannabis industry front-runners," said Zoots' Co-Founder, Patrick Delvin. "The Devlin family is confident that Zoots' sales will continue to grow given the combination of our proprietary formulas and IONIC Brands' marketing expertise." Read this entire announcement for IONC at: https://www.financialnewsmedia.com/news-ionc/
Additional industry related developments from around the markets:
Origin House (CSE: OH.CN) (OTCQX: ORHOF), a North American cannabis products and brands company recently announced that it will host a conference call on Monday, April 29, 2019 at 8:30 am ET to discuss its 2018 fourth quarter and full-year financial results and provide investors with key business highlights. The call will be chaired by Marc Lustig , Chairman and Chief Executive Officer, Francois Perrault , Chief Financial Officer and Afzal Hasan , President and General Counsel.
CONFERENCE CALL DETAILS
Date: April 29, 2019 | Time: 8:30 am ET
Participant Dial-In: 416-764-8688 or 1-888-390-0546
Conference ID: 09173462
Listen to Webcast: https://bit.ly/2Il3dJj
Cronos Group Inc. (TSX: CRON.TO) (NYSE: CRON) recently said that it will announce its financial results for the first quarter ended March 31, 2019, and hold its First Quarter 2019 Earnings Conference Call on Thursday, May 9, 2019 at 8:30 a.m. EDT. Senior management will be available for questions from the investment community after prepared remarks.
A live audio webcast of the earnings call will be available on the Company's website at https://ir.thecronosgroup.com/events-presentations. Participants may also listen via telephone by dialing (866) 795-2258 toll-free from the U.S. and Canada, or (409) 937-8902 if dialing from outside the U.S. and Canada. The call will be archived on the Company's website for replay.
Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) recently announced a new line of mints and the launch of the first flavor, Classic Mint. The microdosing movement is not slowing down, and more people are implementing cannabis into their healthy lifestyle. Mints are the perfect mechanism for delivering low-dose cannabis for those who may not want something quite as sweet or potent as a higher milligram gummy.
"Mints are a logical extension to the PLUS product family as more customers seek out unique taste experiences and low-dose products they trust," said Jake Heimark, CEO and Co-founder. "We are excited about continuing to give customers the best experiences and will continue to be the leader in low-dose infused products in THC."
Aurora Cannabis Inc. (TSX: ACB.TO) (NYSE: ACB) recently confirmed that, further to its press release dated April 5, 2019, the public appeal process related to the German cannabis production tender has been completed, and Aurora's contract with the German Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte BfArM) has now been finalized.
The approval will allow Aurora to begin construction of a new, state-of-the art, indoor cannabis production facility in Leuna, Germany in May 2019 and the Company anticipates completion within 12 months of ground breaking. Initial shipments of locally grown cannabis are expected to become available to German medical patients starting in October 2020, with the new facility producing a minimum of 4,000 kg over a four-year period, to be expanded over time as regulations permit.
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