A London-based CBD firm has acquired a US manufacturer as it looks to boost its supply capacity.
Tenacious Labs has taken over Colorado-based SZM LLC in a cash and shares deal, and with it a large manufacturing facility and ten person team.
Founded in 2018, SZM LLC supplies businesses across North America with hemp-derived products, including for the recreational edible market.
It follows an earlier move to tap into the US cannabinoid market by acquiring female-focused wellness brand Press Pause in April.
Tenacious Labs was co-founded by Adrian Clarke and Nicholas Morland and has benefited from £9.5m in funding from parent company Delarki to support the Group’s growth strategy and operations.
Nicholas Morland, CEO and co-founder of Tenacious Labs, said: “This is another important step in Tenacious Labs’ strategy to become the leading consumer-centric cannabinoid group in the world.
“This acquisition enables Tenacious Labs to not only ramp up its production capability but also adds industry-leading expertise in product quality, regulation, marketing, and new product development.”
Adrian Clarke, Chief Commercial Officer and co-founder of Tenacious Labs, said: “I’m delighted to welcome Zac, Michel and the team at SZM LLC to Tenacious Labs.
“With this, our second acquisition, we’ve significantly strengthened our North American operations to include a world class production facility, which will help support our ambitious global growth strategy.”
“We continue to see significant potential for further acquisitions as we execute our ambitious strategy and are actively appraising a number of further opportunities that will strengthen our position, increase our scale and integrate industry-leading expertise into the group.”
World’s first medical-grade vapouriser now available in the UK
Kanabo’s VapePod can now be purchased on Handpicked CBD.
The world’s first medical-grade vapouriser – the VapePod – is now available to UK customers.
UK-based Kanabo, which has carried out extensive R&D in order to develop innovative medical-grade vapourisers and various non-smoking consumption solutions, has enabled the vape to be used with its three new proprietary formulas: Reload, Relax and Repair.
The high-quality pure hemp distillate CBD formulas contain up to 86% cannabinoids and the vapourisation of CBD means it is fast-acting compared to other products like tinctures or edibles. Each cartridge that goes into the VapePod contains 360mg of CBD and has a blend of terpenes, give more than 300 doses lasting between six to eight weeks.
Kanabo CEO, Avihu Tamir commented: “We are delighted to offer our CBD wellness line through Handpicked CBD.
“Consumers now have access to the strongest yet non-intoxicating CBD formulas with only the highest quality of ingredients. Kanabo’s R&D team has created these fast-acting formulas with the health and wellness of consumers in mind.”
HandPickedCBD, a Materia asset, currently features more than 50 brands and more than 500 different products, all of which must satisfy a list of quality and safety criteria before they are featured on the platform. It is The Marketplace for the best of all CBD products available online in the UK.
The platform highlights the benefit of the proposed partnership between Kanabo and Materia that will make Kanabo the largest medicinal cannabis company in Europe.
Kanabo intends to add more to its portfolio of products as the brand grows.
British cannabis pioneer expands global reach with launch in Asia
Always Pure Organics (APO), has officially launched its new Asia foothold, Always Pure Organics Japan.
Pioneering and market-leading cannabis specialist, Always Pure Organics (APO), has officially launched its new Asia foothold – Always Pure Organics Japan.
The move takes the Manchester-headquartered company’s already strong trading position in the fast-growing Japanese market to make it one of the first European brands to be established on the island.
APO is a top three wholesale and white label market leader in the UK, Japan and Europe, and registering its own company in Japan creates a strong base in a country where the CBD market is beginning to boom.
With more than 80 percent of APO’s business primarily focused on export and following the recent acquisition of Belgian company DLH*, giving it a strong European footprint, APO intends to repeat this ambitious strategy by creating a base in Japan to allow it to grow within the wider Asia region.
By establishing APO Japan, the company, as well as increasing its wholesale and white label business, it now creates the opportunity to distribute its own brands across this key market.
APO began trading in Japan in 2019, and since then has built a reputation for quality and reliability in the rapidly growing Japanese CBD market, where an in-depth of knowledge and experience of the country’s strict import regulations is essential. In the two years since the company began trading in Japan, it has achieved revenue of more than £2.5m and by establishing this base expects sales to rise to £4.5m in the first 12 months alone.
First mover advantage
APO is already recognised as one of the most trusted manufacturing partners in the Japanese market. Establishing APO Japan allows the company to manufacture on the island, to import raw material quicker, register products faster and thereby gives the company a competitive advantage by being locally based.
Given that it can take several months for Western brands to get their product into the market, by having its own domestic manufacturing and distribution warehouse facilities this will allow APO to capitalise on this key FMCG market as well using its new foothold to expand further into Asia.
CEO Gavin Ogilvie, commented: “When operating in the EU, APO is afforded the freedom to distribute its goods duty and tax free throughout the EU on a next day basis. However, in Japan, the customs clearance process slows this down dramatically and results in lengthy lead times. By establishing ourselves in Japan and building on our experience from the previous two years, our clients are able to benefit from our new, faster, local based service.”
Corporate social responsibility
Since June 2020 APO has been engaged with Green Zone Japan in joint preclinical studies called ‘Midori-no-wa (Green Circle)’ for children with intractable epilepsy in Japan. Green Zone Japan is a Japanese medical cannabis advocacy group focusing on bringing evidence-based, accurate and up-to-date information on medical cannabis to Japanese medical professionals and the public.
By now being based in Japan, APO is in a stronger position to further support Green Zone Japan and other organisations researching the benefits of CBD and other cannabinoids.
Regional director for Asia and the country representative of Japan, Chikako Yoshida said: “Evolution in the cannabis industry is fast moving particularly with inspiring stories embracing users and patients who are experiencing great benefits from the plant. After observing the evolution of the CBD industry in Japan – a country with an extremely positive outlook for the year ahead, we have therefore decided that now was the right time to launch APO Japan to respond quicker and more efficiently to the industry demands.”
Voyager sees rapid expansion of CBD stores in Scotland
After the successful opening of Voyager’s new brick and mortar CBD store in Scotland, the company is seeing rapid expansion with the opening of two new premises.
Health and wellness company that supplies CBD and hemp seed oil products, Voyager, opened its first store in St Andrews last month to meet the needs of underserved CBD consumers in the UK. Thanks to strong trading at the store the company is now set to open a further two stores in Dundee and Edinburgh, with a target to open both in time for Christmas trading.
The company has also seen considerable progress over the summer, with its products now stocked in over 70 third-party retail stores in Scotland and England, including Loch Leven’s Larder, Glendoick Garden Centre, WCF Pet & Equestrian and Harbro.
Voyager’s first store in St Andrews, which includes a cafe, has been open for over a month and its successful trading has set the stage for its UK brick and mortar expansion.
The new Dundee store is situated near the V&A Museum and the Malmaison Hotel, and the Edinburgh store is in the middle of the shopping district in Stockbridge and previously operated as a café. Voyager says this will reduce the cost and time of its own preparations to open, suiting the continuation of its strategy of selling coffees and other hot drinks with the option for customers to add CBD.
Voyager founder and CEO, Nick Tulloch, commented: “A little over two months on from our IPO, I am pleased to report that our plans are very much on track and that Voyager is seeing success on a number of fronts. Our diversified business model, extended retail reach and growing product range has given us a platform for sustained growth.
“The rapid growth of the CBD and hemp market, both in the UK and abroad, is well reported and we remain convinced that a significant opportunity exists to build a trusted brand. Feedback from both retail and business customers has demonstrated that there is a growing awareness and interest in CBD and hemp and our policy of providing clear and accurate information, coupled with high quality products that are fairly priced, is generating increasing interest.
“We have a great deal more to do, of course, and the final months of 2021 will be extremely busy for all of the Voyager team as we develop the three sides of our business. Team morale is very high and each customer order further convinces us of the opportunities still to come as we seek to further build revenue and drive long-term shareholder value.”
The new stores will stock a variety of exclusive products that are not available online as well as a small number of guest brands, and the company is set to introduce its new skincare range this week.
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