U.S. Consumers Project to Spend Nearly $3 Billion On Cannabis-Infused Products In 2020
Palm Beach, FL –June 30, 2020 – The global health crisis has actually increased the sales of cannabis-infused products. New reports reveal cannabis consumers in the United States are becoming more interested in cannabis-infused products. The latest report from New Frontier Data projects that 17 percent of U.S. spending on legal cannabis in 2020 will be on cannabis-infused products like edibles, sodas, and topicals. The report said that in total, U.S. consumer spending on legal cannabis will grow by 25 percent in 2020 to exceed $18 billion. While cannabis flower remains the favored cannabis product over cannabis-infused products, researchers expect the demand for non-combustible products, including lotions and beverages, to increase over the next year. The research firm believes sales of cannabis-infused products will grow to $3 billion this year. The report said: ““As alternative ways to consume cannabis beyond combustibles gain popularity during the current coronavirus (COVID-19) crisis, not surprisingly we are seeing a spike in consumption of edibles and other infused products,” said New Frontier Data Founder & CEO Giadha Aguirre de Carcer in a press release. “We anticipate demand for innovative non-combustible ways to consume cannabis to continue to grow.” Active cannabis companies in the industry making moves include: HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Cannabis Global, Inc. (OTCPK: MCTC), Aphria Inc. (NASDAQ: APHA) (TSX: APHA), Cannabis Strategic Ventures (OTCQB: NUGS), The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD).
It continued: “The global pandemic has influenced cannabis purchasing habits in many ways including purchasing practices. In March, cannabis dispensaries across the country began to experience a spike in sales due to the crisis. With this spike came a wave of new consumers purchasing legal cannabis for the first time as well as consumers taking advantage of cannabis delivery services. According to the firm’s latest report, a product’s quality is key for consumers. The quality of a product is the primary purchasing factor for consumers, at 87 percent, no matter whether they are purchasing cannabis-infused products that are primarily CBD or THC focused.” “Consumers tend to have disparate, diverse expectations when it comes to infused products, but agree that quality is a fundamental factor in purchasing decisions. In both the CBD and marijuana markets, consumers consistently listed ingredients, dosage, and testing results as the most important factors,” the report’s authors wrote.
Cannabis Global, Inc. (OTCPK: MCTC) BREAKING NEWS: Cannabis Global Introduces “Hemp & Booch” Super Premium Kombucha – Powered by Hemp You Can Feel™ – Cannabis Global, Inc. (OTC: MCTC) (“Cannabis Global” or the “Company”), a cannabinoid and hemp extract science-forward company developing infusion and delivery technologies, is excited to announce the launch of its newest line of branded products, Hemp & Booch Super Premium hemp-infused Kombucha, a revolution in the Kombucha beverage market built on the finest ingredients available and powered by the Company’s Hemp You Can Feel™ infusions.
“Hemp & Booch not only sets the standard for taste and purity, but also for the relaxing effect provided by the Company’s patent pending Hemp You Can Feel™ infusions,” commented Arman Tabatabaei, Cannabis Global CEO. “Our new line is based on the best all-natural ingredients available, and we believe this comes across in the taste of the products, which are now available in sample quantities.”
The product line, which targets the high end of the craft inspired Kombucha market, is infused using a unique honey bee hemp extract technology. Rather than using hemp extracts produced in a laboratory, like all other manufacturers, Cannabis Global has based its 100% natural product line on extracts of hemp produced by providing hemp extracts to honey bees, which in turn naturally process the extracts into a unique and naturally water-soluble infusion technology.
Management believes the market opportunity in the Kombucha space is underappreciated, especially given the Company’s built-in advantages in hemp infusion technology. According to Grand View Research, the global kombucha market is anticipated to reach USD $7.05 billion by 2027, growing at a CAGR of 19.7% over the forecast period, with growth driven by rising consumer consciousness around healthy dietary inputs.
The Company will be initially introducing three Kombuchas powered by Hemp You Can Feel™ – Concord Grape & Vanilla Bean, Pineapple Mint, and Kalmbucha, a special nighttime blend based on an exotic, caffeine-free organic African tea. Read this and more news for MCTC at: https://www.financialnewsmedia.com/news-mctc/
Additional industry related developments from around the markets:
HEXO Corp. (NYSE: HEXO) (TSX: HEXO) recently announced that it completed the previously disclosed sale of its Niagara, Ontario facility for proceeds of approximately $10.25 million on June 15, 2020. The Company had determined to market the facility for sale following a strategic review by the Company of its cultivation assets in March 2020, in which it determined it no longer expected to re-commence operations at the Niagara facility due to an excess of cultivation capacity in the market and estimated forecast demand for cannabis products, as result of slower than expected market development. The sale of the Niagara facility included land and greenhouse facilities, as well as certain equipment. The Company expects to use the proceeds from the sale of the Niagara facility to fund additional expansion of its Belleville, Ontario facility and for working capital and other general corporate purposes.
Aphria Inc. (NASDAQ: APHA) (TSX: APHA) and a leading global cannabis company, Emblem Cannabis Corporation (“Emblem”), recently announced the parties entered into a settlement agreement on June 25, 2020 (the “Settlement Agreement”) to resolve their outstanding dispute in respect of the termination of the parties’ wholesale cannabis supply agreement (the “Supply Agreement”).
Under the terms of the Settlement Agreement, Emblem shall receive total consideration of C$29,100,000 comprised of a C$15,500,000 cash payment, the issuance of common shares of Aphria with an aggregate market value of C$10,000,000 that will be freely tradeable and transferable in Canada and waiver of claimed receivables. The parties have also agreed to a mutual release of all existing and potential claims, and to the dismissal of the arbitration proceedings that had previously been commenced.
Cannabis Strategic Ventures (OTCQB: NUGS) recently announced the availability of a broadcast titled, “COVID Spikes a Tsunami of Cannabis Sales.” An exerpt said: “COVID-19 has devastated most businesses but created a surge in cannabis sales—a trend that’s likely to continue. Demand exploded during the early stages of COVID-19’s spread through North America. According to the Bank of America, there were record sales of cannabis as consumers stockpiled, preparing for a lockdown. While some people bought mountains of toilet paper or tinned food, both medical and recreational cannabis users were making sure they had enough to see them through a crisis.
Sales could have been stymied as states locked down and restricted business to control the spread of COVID-19. But most states classified cannabis as an essential product, allowing sales to continue even as other parts of the economy were shutting down. Together, these factors led to record sales for some cannabis companies, with Cannabis Strategic Ventures celebrating increased sales of cannabis product from its core cultivation facility and adding staff to address the rising demand.”
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD) a leading producer of premium certified organic cannabis, recently announced that it has expanded its exclusive licensing agreement with Colorado-based Stillwater Brands (“Stillwater”), it will be rolling out the powerful RIPPLE suite of products in Canada, including RIPPLE Gummies and RIPPLE QuickSticks.
Leveraging Stillwater’s proprietary technology, TGOD launched its first Cannabis 2.0 product at the end of March – TGOD Infuser 10mg THC – which quickly became one of the top selling SKUs within the beverage category across the country. Given the success of this first product, TGOD has decided to expand the series by introducing additional formats. Moving forward, all formats will fall under the well-established RIPPLE brand name.
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