HempFusion (TSX:CBD.U) is a mature CBD company that has already made significant in-roads into the US retail market with a broad range of products already approved for sail in mainstream outlets as well as online and in the medical space.
This week we had the opportunity to speak to Jason Mitchell, the CEO of HempFusion, about progress so far, his vision for the company and the growing market for CBD products.
What really impressed us about HempFusion, and what comes across in this podcast, is the scope of its distribution. Here in the UK we have become conditioned into thinking of hemp and cannabis-based stocks as small, adventurous, niche enterprises working nimbly to try to exploit the growing acceptance of cannabis in the US and further afield. HempFusion is a lot more than this.
HempFusion only recently listed on the TSX senior board but has continued with its expansion plans since then. It has a wide range of products that address problems like stress and sleep issues. It is one of only a small number of companies that has FDA listed CBD products for the US OTC market. Products are now sold in over 4000 retail outlets in the USA, among them Whole Foods Market and Professional Supplement Center, as well as through Amazon.
Mitchell talks in the podcast about the role of CBD in the development of the wellness market and why he feels it is still at a very nascent stage. While the Joe Biden election victory last year is being seen as important in the overall liberalisation of the CBD market, like Mitchell we see the international scope of the market is even more exciting.
HempFusion has developed its own brand range of probiotics and digestive enzyme products, a fast-growing area of the market which is expected to reach $7bn in size by 2022, with steady 24% growth forecast through to 2024. This is not just a US phenomenon. Mitchell emphasises the importance that the hemp for his products is properly sourced from the right organic farms in order to meet the stringent criteria that applies in the market. This helps it to get the regulatory approvals it needs – for example it received USDA approval for its CBD tinctures in January.
European readers will be interested to know that the company has started its expansion outside North America. As Mitchell mentions in the podcast, Ireland was targeted as the first European market for its products, and it has now submitted a novel foods application to the UK’s Food Safety Agency. As Mitchell says, “HempFusion was built on the pillars of regulatory compliance. We have invested significant time, resources, and energy to ensure our products meet the highest standards.”
It has not just been all about distribution over the past few months: Mitchell mentions the strong product pipeline in development – for example, it launched new sleep and stress products into the US market with twice the CBD content per serving as previously available. It has also participated in a pioneering study with Mount Sinai Hospital in New York into CBD’s potential use as a heart medicine. Mitchell wants the company to remain on the cutting edge of CBD-related medicinal development for the future.