CBD Sales Reported Online Growth During COVID-19 Lockdowns, Now Brick-And-Mortar Retailers, Dispensaries See Rebound As Some States Reopen
Slowly but surely some states are ‘re-opening’ from their COVID-19 lockdowns and brick-and-mortar CBD stores and dispensaries anticipate a return of their in-person sales. During the shelter-at-home orders, CBD consumers spiked online sales of CBD products. In a perfect world, internet-savvy consumers would buy CBD from both online sites and conventional stores. Commercialized recreational and medical CBD is legal in 36 states and the District of Columbia. Full legalization is in 11 states, including recreational marijuana.
The CBD market has drawn intense interest from media companies. stockmarketpress.com features specialized coverage of CBD related stocks such as Sun Kissed Industries, Inc. (OTC: SKDI), Canopy Growth Corp. (NYSE: CGC), New Age Beverages Corp. (NASDAQ: NBEV), GW Pharmaceuticals PLC (NASDAQ: GWPH), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT). Aurora Cannabis Inc. (NYSE:ACB) (TSX: ACB), Supreme Cannabis Co. (OTC: SPRWF) and OrganiGram Holdings Inc. (NASDAQ: OGI).
CBD Sales Had Online Growth During COVID-19 Lockdowns, Now Brick-And-Mortar Retailers, Dispensaries See Rebound As Some States Reopen
The marketing momentum of cannabis and CBD was barely interrupted by the COVID-19 lockdowns. Consumers found ways to buy products either online or picked up CBD product in front of retail stores and dispensaries to obey social distancing rules for in-store crowd control. One CBD marketer, Sun Kissed Industries, Inc.’s (OTC: SKDI) Hakuna subsidiary, said its online sales spiked some 30% online ever since the shelter-at-home orders were given.
An optimistic Ilan Freeman, CEO of CBD product marketer Hakuna, said, “Our near exponential growth during Q1/Q2 this year has attracted a lot of industry interest. In addition, we have seen demand increase over the past couple of months ahead of our expanded marketing efforts. With Sun Kissed’s expert team, 2020 and beyond will be a game changer.” CBD Sales Had Online Growth During COVID-19 Lockdowns, Now Brick-And-Mortar Retailers, Dispensaries See Rebound As Some States Reopen.
State-By-State Re-Openings From The Lockdown
In a state-by-state re-opening phase, CBD sales at retail are re-emerging in both specialty shops and dispensaries. Some stores are open throughout the COVID-19 crisis, but reports were that some saw sluggish sales following a spike just prior to the stay-at-home orders as consumers initially stocked up on CBD product. Now, as some states emerge step-by-step, online CBD sales remain strong. CBD Sales Had Online Growth During COVID-19 Lockdowns, Now Brick-And-Mortar Retailers, Dispensaries See Rebound As Some States Reopen.
Consumers See CBD As A Wellness Product
During the prolonged period of at-home orders, consumers felt that CBD products were able to relieve anxiety over the impact of the virus. A consumer poll of CBD users during the COVID-19 lockdowns found that users anticipated using more CBD in the future to improve sleep and coping with the presence of coronavirus.
CBD A $23.7 Billion Market By 2023: Research
The Brightfield Group projects that the CBD industry in the U.S. will reach $23.7 billion by 2023 and Arcview Market Research thinks it will hit $20+ billion in America by 2024. Either way, these forecasts are optimistic that the CBD industry will generate double-digit CAGR increases as the industry goes legal nationally and appears on store shelves ranging from high end department store chain Dillard’s to national pharmacy chain Walgreen’s.
Research from the Brightfield Group finds that online sales of CBD products expectations will boom during the COVID-19 coronavirus ‘lockdown’ with 39% of home-bound CBD consumers saying in a poll that they expected to use more CBD during the crisis. That dovetails with sales results from Sun Kissed Industries, Inc. (OTC: SKDI) which recorded a 30% jump in online sales of Hakuna CBD products since the ‘lockdowns’ began.
CBD Is Seen As A Self-Care Relaxant During The Pandemic Crisis
Why is CBD popular during the lockdowns? It is seen as an important relaxant to home-bound consumers. Anxiety was the primary ailment from the pandemic reported by 53% of consumers polled in the study. Next were depression and insomnia — driving sales to CBD consumers who are concerned about their own health and well being, the poll found.
“Interestingly, when we analyzed the social media posts involving CBD and the coronavirus, we found that the most common topic was self-care,” the Brightfield Group concluded. “With so much of the country in quarantine right now, many are turning to self-care indulgences to keep themselves sane and even just pass the time, which is likely to help boost some CBD self-care products during quarantine time.”
Sun Kissed Industries, Inc.’s (OTC: SKDI) acquires Hakuna As Part Of Quick Paced M&A Activity In Industry
Recent M&A activity in the CBD industry includes the move by Sun Kissed Industries, Inc. (OTC: SKDI) to acquire Products Group Inc.DBA/Hakuna Supply, a well established retail CBD company. In an all-stock deal, Hakuna is now a wholly-owned subsidiary of Sun Kissed Industries, Inc. (OTC: SKDI). Sun Kissed also signed an LOI to buy Numuni, a proprietary technology monetization platform. Charlotte’s Web (NASDAQ: CWBHF), marketer of hemp-derived CBD products, bought Abacus Health Products (CSE: ABCS), a leader in OTC hemp extract topicals. It will result in a new entity with an estimated $190 million in sales in 2020 and a market cap of some $450 million. Mainstream firm Colgate Palmolive (NYSE: CL) acquired Hello Products and its line of oral hygiene products — CBD-infused toothpastes, mouthwashes, lip balms and toothbrushes targeted to a young audience.
Sun Kissed Industries, Inc.’s (OTC: SKDI) Hakuna Boosts Output With Expanded Clean Room, Newly Installed Equipment
The newly expanded Clean Room of Hakuna went into full operation in April with a new capacity to produce single serve instant coffee pouches. The new Clean Room facility has new equipment, increased marketing investments and more output capacity. It is equipped with a new industrial mixer, a Nespresso Capsule filling machine and a Bagged Coffee filling machine. Sun Kissed Industries, Inc.’s (OTC: SKDI) Hakuna Subsidiary Boosts Output By 300%-500% With Clean Room Expansion.
Sun Kissed Industries, Inc. (OTC: SKDI) Closes On Hakuna Acquisition In February 2020
Sun Kissed Industries, Inc. (OTC: SKDI) acquired the issued and outstanding shares of Hakuna in a definitive stock purchase agreement in February 2020. It sells products including premium CBD coffee, CBD tea, CBD Drink Drops, CBD Gummies and CBD Flower product markets.
Sun Kissed Industries, Inc. (OTC: SKDI) is an emerging leader in the CBD-based products market. It is pursuing technology acquisitions in an aggressive M&A strategy. It seeks to become a dominant player within a high-growth niche within the fast-growing CBD sector.
Source: Stock Market Press
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