Khiron Life Sciences (KHRN.V) entered a distribution deal with Asia Pacific market distributor, DNO Group, today, according to a press release.
The distribution deal more specifically is for their Kuida cannabidiol cosmeceutical brand of skin and body care products, which will be distributed through DNO’s network of retail and online channels in Hong Kong.
“With this distribution deal we establish a significant footprint in Hong Kong for our Kuida brand and gain access to the Asian Pacific beauty and skincare market, the world’s largest region for skincare products. DNO Group have a large distribution network of over 50,000 points of sales in the region, including prominent pharmacy, beauty retail and online channels that we know from experience in other jurisdictions are where our customers are choosing to purchase Kuida products. Importantly, DNO Group brings valuable insight into the Asian consumer profile, further supporting the impact of the brand roll-out in Hong Kong,” according to Alvaro Torres, Khiron, Khiron’s CEO and director.
The Hong Kong market expands out to a local population of 7.2 million, and serves as a doorway both too and from mainland Chian. The Hong Kong personal care and cosmetics market has an estimated revenue of US$2.7 billion from 2018 and is expected to grow as the demand for beauty and personal care items increases substantially.
Seven of Kuida’s SKU’s will see their way into the Hong Kong market. The first orders are expected in Q4 2020, effectively continuing Khiron’s strategy of focusing on specific, high-value global CBD skincare market. Kuida can be found in 350 retailers in Colombia, as well as the United Kingdom and a recent arrival in Spain. The company received recognition from Technavio Research as one of the top players in the CBD market, alongside L’Oreal SA and The Estee Lauder Companies.
“Kuida CBD based skincare products are well suited for consumers in Hong Kong, as well as for our portfolio and distribution capabilities. Furthermore, the efficacy of the products themselves is impressive. We expect a highly positive sales development for Kuida in Hong Kong going forward,” said Ofri Shaysh, DNO Group’s managing director.
The first orders are expected in Q4 2020, and distribution is conditional on TSXV approval.