PALM BEACH, Fla., July 27, 2021 /PRNewswire/ -- The CBD market has achieved steady growth curve even during the pandemic. CBD or cannabidiol is a natural substance derived from cannabis, found in both marijuana and the non-psychoactive hemp plant. CBD is a non-psychoactive chemical compound and may alleviate things such as anxiety and pain, which is why it is used to create wellness products, such as oils, edibles and functional beverages. The pandemic caused a shift in CBD sales to online channels. While this shift ensured that CBD products remained accessible to consumers, it did not fully compensate for the loss of education and brand awareness available at some retail stores. A survey by Brightfield Group from June 2020 found that 45% of CBD consumers and 54% of millennial consumers shifted to purchasing CBD online due to the coronavirus crisis. Charlotte's Web reported that online sales grew 27% in 2020 to constitute 67% of the company's total sales. A report from Statista added that In the United States, cannabidiol products generated sales of roughly five billion U.S. dollars in 2020. By 2025, CBD product sales are predicted to reach nearly 17 billion U.S. dollars in the United States. With estimated sales of 730 million U.S. dollars, the state of California was the country's leading market for CBD products. By 2025, nutraceuticals are forecast to become the largest CBD category in terms of U.S. sales. Active Companies in the merchant industry include The OLB Group, Inc. (NASDAQ: OLB), Grove, Inc. (NASDAQ: GRVI), Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).
The report continued: "CBD products come in many different shapes and sizes, including tea, vape products, and soaps. Within the food segment, oils and spreads were the most common types of cannabidiol products in 2019. In American convenience stores, vitamins were the leading CBD segment in terms of sales, generating over 20 million U.S. dollars in 2020. Overall, lotions and balms were the segment of CBD products that sparked the most interest among consumer in the U.S. followed by gummies, tinctures, and supplements. While still a relatively small factor in consumer markets, CBD penetration is growing. In 2019, CBD accounted for four percent of the global vitamin and dietary supplements market. By 2027, this number is expected to grow to over 20 percent."
The OLB Group, Inc. (NASDAQ: OLB) BREAKING NEWS: OLB Group Signs Letter of Intent to Acquire a Portfolio of CBD Merchants with Annual Volumes of Over $300M - Following closing, OLB acquisition is expected to add $13M, increasing revenue 118% - The OLB Group, Inc., a provider of cloud-based omnicommerce and payment acceptance solutions for small- and mid-sized merchants, announced it has signed a non-binding letter of intent (LOI) to acquire a portfolio of CBD and other merchants that will utilize the company's SecurePay Payment Gateway to process payments. The group of merchants to be acquired have reported annual volume of greater than $300 million. The transaction is anticipated to add an accomplished and experienced sales channel to the OLB team, enabling further penetration into one of the fastest growing sectors in the United States. OLB anticipates an additional $13 million in revenue and $3.6 Million EBITDA from the transaction, nearly doubling its current revenue to over $25 million.
The company also plans to use the deal as a foundation to expand SecurePay services and its eCommerce business activities. The terms of the agreement were not disclosed.
"OLB is delighted to enter into this letter of intent to secure this group of successful merchants. Once closed, the acquisition gives us a strong position in a marketplace that continues to demonstrate robust growth and profitability," said Ronny Yakov, Chief Executive Officer of The OLB Group. "The SecurePay platform provides compliant payment processing services that extend beyond traditional card payments, offering flexible choices that will appeal to merchants and their customers in a single and secure ecosystem. We believe this platform is perfectly suited to address the lucrative CBD market."
A recent market analysis by Grandview Research indicates the burgeoning CBD market was valued at $2.8B in 2020 and is expected to expand at a growth rate of 21.2% through 2028. OLB's acquisition positions the company to perfectly capitalize on the projected growth of the CBD market, while SecurPay will address many of the payment concerns the quickly expanding CBD market currently experiences.
SecurePay provides integrated support for traditional card-based payments, as well as major digital wallets including Apple Pay® and Google Pay®, cryptocurrency wallets, and PayPal. The cloud-based platform also includes integrations with multiple back-office systems including QuickBooks and other business software applications.
For merchants looking to simplify business processes and payment acceptance at the point of sale (PoS,) OLB's OmniSoft Business Management Platform offers merchants extended services including PoS terminals, warehouse, inventory, and logistics support, accounting and payroll, and customer relationship management. For more information about The OLB Group, please visit https://olb.com/ or http://olb.com/investors-data/.
Other recent developments in the eCommerce/Merchant industry include:
The brand currently offers customers unique products from Apple Cider Vinegar + Acai, Turmeric Immunity, and an upcoming Algae Oil supplement that will act as a plant-based alternative to fish oil for daily Omega-3 intake.
Qubes gummies are completely free of preservatives, chemicals, corn syrup, allergens, soy, dairy, wheat, salicylates, artificial ingredients, artificial sweeteners, flavors or colors. This newest launch is set to take advantage of the growing demand in the vitamin space.
Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, recently announced that its wholly-owned subsidiary in Germany, Aphria RX GmbH, has completed the first successful harvest of medical cannabis cultivated in Germany for distribution to German pharmacies. The medical cannabis harvest is the first cultivated under European Good Manufacturing Practices (EU GMP) standard at Tilray's state-of-the-art 6,000 square meter indoor growing facility in Neumünster, Germany. The subsequent distribution, which was carried out by a distributor on behalf of the German Cannabis Agency and in accordance with all pharmaceutical and narcotic legal requirements, underscores Tilray's strong foothold and operational excellence within Europe's key medical cannabis market.
"Our harvest in Germany represents an important milestone in granting access to high-quality and trustworthy medical cannabis to patients and healthcare professionals in Germany," said Denise Faltischek, Tilray's Head of International and Chief Strategy Officer. "It is a testament to the professionalism and dedication of our team that, despite the challenges of a global pandemic, we remained on track as the first licensed producer to cultivate medical cannabis in Germany. Our achievement would not have been possible without the trust and cooperation of the Federal Institute for Drugs and Medical Devices (BfArM) and the Germany Cannabis Agency, for which we are sincerely grateful."
Following the release of its first quarter fiscal year 2022 financial results, Canopy Growth will host an audio webcast with David Klein, CEO and Mike Lee, EVP & CFO at 10:00 AM Eastern Time on August 6, 2021.
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) one of the largest vertically integrated cannabis companies in the United States ("U.S."), recently announced that they have entered into an agreement under which a wholly owned subsidiary of Cronos Group has purchased an option (the "Option") to acquire an approximately 10.5% ownership stake in PharmaCann (the "Transaction") on a fully-diluted basis. The Option exercise will be based upon various factors, including the status of U.S. federal cannabis legalization, as well as regulatory approvals, including in the states where PharmaCann operates that may be required upon exercise.
PharmaCann has a broad geographic footprint in the U.S. and has built an efficient, effective and scalable operating model, including six production facilities and 23 dispensaries operating under the Verilife™ brand across six limited license states: New York, Illinois, Ohio, Maryland, Pennsylvania and Massachusetts. PharmaCann continues to invest in its manufacturing infrastructure and brand development to capitalize on the significant consumer retail and business-to-business wholesale opportunities.
"Our U.S. growth strategy focuses on delivering long term shareholder value by assembling a best-in-class brand and intellectual property portfolio and positioning to deploy our products in the U.S. market through investments and opportunities with U.S. leaders who share our vision and commitment to responsibly distributing disruptive cannabinoid products that improve people's lives," said Kurt Schmidt, President and Chief Executive Officer of Cronos Group. "We were attracted to PharmaCann as an investment because of their disciplined capital allocation, strong track-record and compelling licensed manufacturing and retail footprint. Further, we are excited to partner with PharmaCann because of our shared commitment to elevating product quality and consistency through science and best in class operations and manufacturing."
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