Laguna Blends (LAG.C) increased its market penetration when the company announced today that it had entered into an exclusive agreement with a Canadian-based distributor of CBD products.
According to the news release, the distributor will have full control over Laguna Blends’ recently licensed Isodiol portfolio.
This means they will get their hands on all the products in the beverage, edibles, oils, sprays, topicals and crystalline categories.
The release went on to explain that in the last three months, the distributor has generated revenue of US$300,000 through its network of dispensaries, manufacturers, and product formulators that span the country.
The agreement calls for an initial minimum order of US$250,000 with subsequent monthly orders.
This downstream distribution deal follows up on the company’s announcement in early February that it had entered into an exclusive distribution deal with Isodiol.
Isodiol is based out of Southern California and was co-founded by Marvin Washington, 11-year NFL veteran and Super Bowl winner.
Ray Grimm Jr. commented, “By securing this distribution channel, it allows us to really develop a strong footprint into the Canadian Market. By leveraging our partner’s warehousing, logistics and fulfillment capabilities, we are set to address fast growing sales on a national scale. The Canadian market has a rapidly increasing demand for such hemp based CBD products and our high-quality portfolio is quickly establishing itself as a market leading solution.”
There’s a whole lot of potential in the Canadian CBD market as legalization of cannabis is predicted to create a $10.0 billion-dollar marijuana sector in this country.
Laguna Blends is focused on more than domestic market share and will continue to source out other distribution channels for its cannaceutical, Pro369 and other product lines in the world marketplace.
Just how big is that market anyway? Here’s some perspective.
Even though the American CBD space earned $202 million in sales in 2015, it is expected to balloon over 900% to $2.1 billion by 2020 according to market intelligence firm, Hemp Business Journal.
That’s just one international market.
All that’s left in this deal is the execution.
I will be watching closely.
FULL DISCLOSURE: Laguna Blends is NOT an EQUITY.GURU client.