Hemp health business Ecofibre cracks USA's largest pharmacy CVS
14 May 2020, Written by Matt Ogg
Hemp nutraceuticals company Ecofibre (ASX: EOF) has continued its aggressive rebound on the ASX today after announcing an exclusive distribution agreement with CVS, the USA's largest pharmacy chain.
The deal was reached by Ecofibre EOF Distribution, Inc and will initially see 10 of the group's Ananda Hemp range of topical creams and salves offered for sale at select CVS locations in December.
All products will be manufactured in Ecofibre's new US Headquarters located in Georgetown, Kentucky.
The agreement is an ongoing agreement and covers potential future purchase orders, with no minimum or maximum order volume specified in the contract.
"We are very pleased to have been selected to supply this brand of products to be offered exclusively at CVS, and are excited at the long-term prospects of providing high-quality hemp-derived products to a broad range of consumers," says Ananda Health CEO David Neu.
"During the quarter many lower quality manufacturers, with short-term strategies, involuntarily exited our industry," Ecofibre CEO Eric Wang said when the results were announced on 15 April.
"The economic uncertainty from the pandemic did not financially impact Ecofibre this quarter. However, we have adjusted plans and accelerated certain parts of our strategy in response to the near-term environment and the longer-term 'new normal'."
Late last month Ecofibre also announced a reprioritisation of its Hemp Black line of hemp textiles, launching hemp-based personal protection equipment (PPE) in the US in the form of face masks.
The masks are manufactured in collaboration with business partner TexInnovate, located in Greensboro, North Carolina.
"In line with our capabilities, we have launched a high-quality washable mask featuring Hemp Black technologies," Wang said at the time.
"Whilst masks can be easily sold at this time, fair and sustainable pricing is critical. We expect the existing demand for protective facemasks to remain for the foreseeable future.
"At least 90 per cent of our capacity will be made available to major healthcare supply distributors, and a small percentage of masks allocated to our direct to consumer channel and US state governments."
Photo: Courtesy of S Jones, Flickr Creative Commons
Business News Australia
Author: Matt Ogg