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If anything has been the theme over the last 12 months, other than avoiding COVID and joblessness, then it certainly has been higher awareness of general health and wellbeing. As the stress and tension levels have risen so has the need to address them in a constructive way.

Companies like US-based CBD producer HempFusion Wellness Inc. [TSX:CBD.U / OTC: CBDHF] and its wholly owned subsidiary Probulin Probiotics LLC have been particularly active in this field recently and have positioned themselves to grow with the expected expansion of this market.

Readers will know that we started following HempFusion more closely ahead of its Canada IPO. We like the company because of its strong presence in the US retail space including Big Box and OTC medicines. We think it will continue to build on what it has achieved so far to meet growing demand from American consumers.

To reinforce this, Probulin Probiotics, the maker of Probulin, one of the fastest growing probiotic supplement brands in the US, this week launched the Total Care Immune probiotic range, a next generation probiotic. Earlier this month the company had already expanded its offering in brick and mortar stores across the US such as Sprouts and Fresh Thyme and added sales via Amazon using a unique ecommerce store within the Amazon platform.

Brand awareness and profitability

Since the beta launch in early December 2020, Amazon has helped Probulin generate brand awareness, driving both sales and product education. The company noted that initial results have generated a strong average return on ad spend of $8.54 for every $1 invested. The health and environmentally friendly theme extends even to the insulated boxes which Probulin uses to ship its cold products to customers which are made from recycled denim.

Even before the global pandemic modern high-stress life style made it increasingly difficult to spend time cooking and enjoying food slowly, leading to a rise in digestive problems across urban environments. The global demand for digestive enzyme supplements was already close to $800m in 2015 but since then it has accelerated and is now expected to reach close to $7bn by next year, with further sharp increases to follow.

As HempFusion’s chief executive Jason Mitchell M.D. explains, “70% of our immune system resides in the gut, so it’s no surprise that today, more than ever, consumers are actively researching probiotics, looking for brands they can trust to support digestive and immune health as well as overall health and wellness. Probulin products are designed from scientifically documented strains of living probiotic beneficial bacteria and are manufactured in an National Sanitation Foundation-certified facility.”

We also got a chance recently to chat with Mitchell in person for The Armchair Trader podcast, which should be out imminently.

Earlier in January HempFusion expanded its global foothold by accessing the European market through a distribution agreement with a European distributor with an extensive retail store network. It also received the nod of approval from the Food Safety Authority of Ireland and now carries fully European Union-compliant labelling and packaging which will allow the firm to sell both its CBD tinctures and a range of Probulin probiotic products in the EU.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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