Hemp health business Ecofibre cracks USA's largest pharmacy CVS

Hemp health business Ecofibre cracks USA's largest pharmacy CVS

Hemp nutraceuticals company Ecofibre (ASX: EOF) has continued its aggressive rebound on the ASX today after announcing an exclusive distribution agreement with CVS, the USA's largest pharmacy chain.

The deal was reached by Ecofibre EOF Distribution, Inc and will initially see 10 of the group's Ananda Hemp range of topical creams and salves offered for sale at select CVS locations in December.

All products will be manufactured in Ecofibre's new US Headquarters located in Georgetown, Kentucky.

The agreement is an ongoing agreement and covers potential future purchase orders, with no minimum or maximum order volume specified in the contract.

"We are very pleased to have been selected to supply this brand of products to be offered exclusively at CVS, and are excited at the long-term prospects of providing high-quality hemp-derived products to a broad range of consumers," says Ananda Health CEO David Neu.


Related story: Ecofibre, the Aussie hemp giant pushing a $1 billion market cap


The announcement follows a 42 per cent year-on-year uptick in sales to $14.2 million in Q3, although this was down 4 per cent on the December quarter.

"During the quarter many lower quality manufacturers, with short-term strategies, involuntarily exited our industry," Ecofibre CEO Eric Wang said when the results were announced on 15 April.

"The economic uncertainty from the pandemic did not financially impact Ecofibre this quarter. However, we have adjusted plans and accelerated certain parts of our strategy in response to the near-term environment and the longer-term 'new normal'."

Late last month Ecofibre also announced a reprioritisation of its Hemp Black line of hemp textiles, launching hemp-based personal protection equipment (PPE) in the US in the form of face masks.

The masks are manufactured in collaboration with business partner TexInnovate, located in Greensboro, North Carolina.

"In line with our capabilities, we have launched a high-quality washable mask featuring Hemp Black technologies," Wang said at the time.

"Whilst masks can be easily sold at this time, fair and sustainable pricing is critical. We expect the existing demand for protective facemasks to remain for the foreseeable future.

"At least 90 per cent of our capacity will be made available to major healthcare supply distributors, and a small percentage of masks allocated to our direct to consumer channel and US state governments."

Photo: Courtesy of S Jones, Flickr Creative Commons

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

Go1 founders win Brisbane Young Entrepreneur of the Year Award after decade-long wait

After their business became a unicorn amidst the ongoing expansion ...

Cardno shareholders to get a cut from $667m sale of international divisions

Cardno shareholders to get a cut from $667m sale of international divisions

Engineering and consulting group Cardno (ASX: CDD) has sold its US ...

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

Pacific Fair sale puts the spotlight on buyers for Dexus’ minority stake

The Gold Coast’s Pacific Fair shopping centre, fresh from pla...

Victoria opening to vaccinated international arrivals from 1 November

Victoria opening to vaccinated international arrivals from 1 November

With lockdown lifting today in Victoria the state’s governmen...