Somewhat related, you announced on August 1st a partnership with GreenSpace Brands Inc (TSXV:JTR) to launch a new CBD infused health and beauty line (Click Here). To the degree that you can, where will this line be available for purchase and what products do you see being offered initially?
With Emblem’s licensed manufacturing facility and premium medical cannabis products, and GreenSpace’s product and brand development leadership, we’re able to create something new and innovative that will enter the market in the coming months.
We will initially launch with a capsule line of hemp-based products (both CBD and non-CBD) to begin building brand awareness. We will then move into Cannabis based CBD products after legalization. Our long-term strategy will see us expand our CBD-infused product offerings across a number of CPG verticals including health, beauty, food and beverage in 2019 as permitted.
Any products labelled CBD will be sold through Emblem’s existing channels, such as AGLC, Fire & Flower, and Shoppers Drug Mart. Any hemp-based non-CBD products will be sold through GreenSpace’s existing national retail network of grocery, natural food stores, front of pharmacy. Together our goal is to become a market leader in delivering premium, natural CBD health and wellness products to Canadians.
We all know that the value tends to be in the finished product. A can of your favourite branded pop or beer is a good example because you know what that can sold for and you have a good idea of what the contents cost to make and particular when the main ingredient is water. Does that value (margins) translate over to your planned health and beauty line?
Absolutely, we see the greatest opportunity for margin growth in this sector coming from branded products. Consumers buy brands, they don’t buy commodities. There is intrinsic value in a brand that can’t be justified or explained, but we’re all willing to pay for it. The cannabis industry will be no different. Consumers will be attracted to brands that they identify with, and that offer
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