Recently listed wellness product manufacturer HempFusion [TSX:CBD.U] has just been granted USDA approval for its CBD tinctures, a major boost for the company as it continues to roll out certified hemp products into the US and international wellness and medicinal markets. HempFusion reported this week that approval was granted for tinctures ranging in potency from 150mg to 1500mg.
Strong start for the stock after listing
We flagged HempFusion Wellness up ahead of its IPO because we felt it represented a mature stock in the evolving hemp and CBD sector in North America with a diverse, certified product range and a strong grasp of distribution. Although only listed in Canada last week, shares are already trading up 10%.
HempFusion offers consumers a broad range of hemp-based health products designed to assist with common problems like pain and lack of sleep. This comprises 46 SKUs (stock keeping units) including tinctures, proprietary FDA drug listed over-the-counter (OTC) topicals, doctor/practitioner lines and more. With a strong focus on research and development, HempFusion has an additional 30 products under development.
“Our team has worked meticulously to earn USDA Organic Certification, which supports our commitment to providing consumers with premium and differentiated CBD products as well as new potential distribution points,” commented Jason Mitchell, N.D., HempFusion’s Co-founder and Chief Executive Officer. “This prestigious certification joins our many other compliance markers, further establishing HempFusion as a leader in the premium CBD category.”
HempFusion began the process of certifying its tincture as USDA Organic in 2018, as organic products generally represent some of the highest quality and prestigious products on store shelves today.
USDA Organic is a big hurdle for manufacturers
USDA Organic certification is a rigorous process that involves detailed documentation for every step in the growth, production and manufacturing process, from what is in the soil and how the hemp is grown and extracted, to how the finished products are manufactured and bottled.
At all times, companies are required to demonstrate their ability to meet rigorous organic standards with respect to CBD tinctures, including undergoing independent facility and documentation audits to both earn and maintain the right to use the USDA Organic seal.
HempFusion has invested heavily in ensuring that its products meet the highest regulatory and environmental standards available. This is playing a very important role in the achievement of its already impressive distribution network, which embraces more than 4000 physical outlets in the United States alone.
Jason Mitchell Q&A with The Armchair Trader
The Armchair Trader recently spoke with Jason Mitchell, HempFusion’s CEO, for our podcast, which we expect to drop next week. In it Mitchell mentioned that OTC pharmacy distribution is going to be a big part of HempFusion’s growth strategy in 2021 and that he is already beefing up the company’s digital marketing team.
Right now digital sales represent only a fraction of the total HempFusion product sales figures. HempFusion is sold on Amazon among several other major distribution channels, but fully embracing the digital channel should do great things for its revenues going forwards.