HempFusion Provides Operational Update
April 05 2021 - 7:44AM
Business Wire
HempFusion Wellness Inc. (TSX:CBD.U) (US:CBDHF) (FWB:8OO)
(“HempFusion” or the “Company”), a leading health and
wellness company offering premium probiotic supplements and
products containing CBD, is pleased to provide an operational
update.
Highlights
- Brightfield Group’s most recent survey ranks HempFusion #2 in
the US for CBD Brand Awareness
- Probulin Probiotics finished 2020 as the fastest-growing
Probiotic brand out of the Top 10 in the US, according to
SPINS
- HempFusion is the #2 CBD holding in AdvisorShares Pure US
Cannabis ETF, the only US-listed exchange traded fund dedicated
solely to US cannabis exposure
- HempFusion is one of the select few companies to offer OTC Drug
Listed Topical products
- The Company’s OTC Tropical products have ranked #1 in both
sales dollars and units sold at a major Food & Drug Mass
(“FDM”) retailer in the US, according to NielsenIQ
- Complete digital relaunch, increasing online traffic by
10x
2020 in Review
COVID and continued lack of clarity from the FDA related to
official regulatory guidance for CBD used in dietary supplements,
foods, and beverages has made 2020 a challenging year. However,
these challenges have led to strategic changes, establishing the
foundation for HempFusion to succeed in 2021 and beyond. There are
no quick and easy ways to navigate this dynamic and emerging
industry. The Company remains focused and highly optimistic that
the five-channel strategy and international expansion will drive
significant success throughout 2021 and beyond.
Over the past year, we have experienced multiple challenges
brought on by the global pandemic. These challenges have impacted
the Company and its supply chain partners, including retailers.
They have also brought about a renewal in the way HempFusion thinks
and operate as a Company. These changes have already led to certain
successes that are occurring in Q1, 2021.
Positive Momentum for 2021
- Completed a US$17,000,000 initial public offering (“IPO”) and
commenced trading on the Toronto Stock Exchange (the “TSX”),
becoming the first U.S.-based CBD & wellness products company
to list directly on the TSX (senior board). Starting the year as
the #2 most recognized CBD brand in America
- HempFusion remains one of the few companies offering OTC drug
listed topical products allowing the opportunity for vast
penetration throughout the FDM channel, the largest dollar volume
channel
- As of the end of January 2021, NielsenIQ data ranks HempFusion
as the #1 in product sales and units sold in one of the largest FDM
retailers
- Due to this successful performance, this retailer has expanded
HempFusion’s products from 78 stores to 798 stores, and HempFusion
accounts for roughly 50% of category sales
- The Company has shifted resources and its distribution of sales
from a near-exclusive brick and mortar retail company to include a
much larger digital focus; early success has shown a 10x increase
in online traffic with significant increase in conversion.
- The comprehensive digital rebuild and execution of the
eCommerce channel has resulted in a shift of company revenue
breakdown from 6% online to nearly 24% online in recent
months.
- The Company launched “The Probulin Store” on Amazon, and early
2021 traction is encouraging. Sales have nearly tripled in less
than three months
- HempFusion’s Probulin has seen 10% or greater month-over-month
growth since launching on Amazon
FDM/Big Box
- Successfully launched and continue to lead the category in the
5th largest retailer in the channel
- Currently engaged with several leading FDM retailers such as
Kroger, Albertsons, Walgreens, CVS, Costco, Bashas, SEG (Winne
Dixie), among others. These targeted launches will include both
ingestible and topical CBD as well as Probulin probiotics
Convenience Channel
- Officially relaunched with Crossmark, the largest broker
network in this channel, with crucial initiatives already in motion
that are likely to yield a highly successful outcome as early as
H1, 2020
Doctor / Practitioner Channel
- HempFusion has engaged a lead generation agency that has
already yielded success in early 2021, and the Company expects to
add significant momentum throughout the year
- HempFusion has launched with FullScript, one of the premier and
most significant online distributors of products throughout the
practitioner channel, reaching 80,000 practitioners and over
600,000 patients across the United States and Canada
eCommerce
- Established a key stronghold on Amazon for Probulin, yielding
significant early results with a ROAS (Return On Advertising Spend)
of $5.49 as of the end of January 2021
- Extensive rebuild of both Probulin.com and HempFusion.com, sets
up the framework for a large-scale digital footprint expansion
- Increased online traffic by nearly 10x
- Officially launched Probulin on the World’s largest eCommerce
platform, Alibaba’s Tmall Global, with HempFusion CBD expected to
follow
Natural Products Industry
- Continued focus on expansion to new retailers, including soft
commitments with Vitamin Shoppe, expected in Q2 of 2021
- Continued success with Sprouts Farmers Market becoming the #2
brand for shelf-stable probiotics, the fastest-growing section of
the probiotic category
- According to SPINS, Probulin is the fastest growing probiotic
brand in the Natural Products Industry
International Expansion
- Officially launched both Probulin and HempFusion in Ireland
with a strategic distribution partner and with the full
acknowledgment of the FSAI (Food Safety Authority of Ireland)
- Products are on the shelf in both Ireland and the UK. The UK is
the largest market for CBD products in Europe
- Other international targets in motion are Latin America,
Canada, India, China, and the rest of Europe
When considering the momentum that we are now experiencing as we
enter 2021, it is essential to update shareholders on the
regulatory landscape and the advancements we have made over the
past several years and months. HempFusion continues to drive the
industry forward with research and development, radical
transparency and a focus on regulatory compliance.
Domestic & International Regulatory
accomplishments
- Completed all necessary toxicology studies that ultimately
leads to Self-Affirmed GRAS. Once published, the toxicology studies
are peer-reviewed and signed. HempFusion plans to announce
Self-GRAS Affirmation targeted for Q2 2021
- The NOAEL (No Observed Adverse Effect Level) manuscript is now
complete, ready to publish.
- Submitted Novel Food Application to the FSA in the United
Kingdom
- Submitted all items eligible for the proposed “Public Approval
Product List” for the UK
- Completed a year-long safety study with ValidCare as a
co-sponsor of what is considered the most extensive and largest
Human Observational toxicology study ever done on CBD
- ValidCare’s initial findings revealed that HempFusion products
had no liver toxicity and the findings, of the entire cohort, has
been discussed with FDA officials.
- Eight HempFusion products were officially listed as OTC Drugs
with the FDA including NDC (national drug code) numbers issued for
topical products
- We have launched a full line of USDA Certified Organic
Tinctures
The Company has built a strong foundation throughout a
challenging 2020. After the completion of a successful IPO, the
Company remains focused on executing it’s five channel strategy
driving significant revenue growth across domestic and
international markets in 2021 and beyond. We remain hyper focused
on the long game.
The future is bright.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements and
forward-looking information within the meaning of Canadian
securities legislation (collectively, “forward-looking
statements“) that relate to HempFusion’s current expectations
and views of future events. Any statements that express, or involve
discussions as to, expectations, beliefs, plans, objectives,
assumptions or future events or performance (often, but not always,
through the use of words or phrases such as “will likely result”,
“are expected to”, “expects”, “will continue”, “is anticipated”,
“anticipates”, “believes”, “estimated”, “intends”, “plans”,
“forecast”, “projection”, “strategy”, “objective” and “outlook”)
are not historical facts and may be forward-looking statements and
may involve estimates, assumptions and uncertainties which could
cause actual results or outcomes to differ materially from those
expressed in such forward-looking statements. No assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this news release should not
be unduly relied upon. These statements speak only as of the date
of this news release. In particular and without limitation, this
news release contains forward-looking statements relating to the
Company’s 2021 plans, focus and objectives.
Forward-looking statements are based on a number of assumptions
and are subject to a number of risks and uncertainties, many of
which are beyond HempFusion’s control, which could cause actual
results and events to differ materially from those that are
disclosed in or implied by such forward-looking statements. Such
risks and uncertainties include, but are not limited to, the impact
and progression of the COVID-19 pandemic and other factors set
forth under “Forward-Looking Statements” and “Risk Factors” in the
final long form prospectus of the Company dated December 17, 2020
and available under the Company’s profile on SEDAR at
www.sedar.com. HempFusion undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by law. New factors emerge from time to time, and it is not
possible for HempFusion to predict all of them or assess the impact
of each such factor or the extent to which any factor, or
combination of factors, may cause results to differ materially from
those contained in any forward-looking statement. Any
forward-looking statements contained in this news release are
expressly qualified in their entirety by this cautionary
statement.
Neither the TSX nor its Regulation Services Provider (as that
term is defined in the policies of the TSX) accepts responsibility
for the adequacy or accuracy of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210405005264/en/
Jason Mitchell, N.D. Chief Executive Officer and Director Email:
ir@hempfusion.com Phone: 416-803-5638
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