Zoetic International PLC (LON:ZOE) has noted a “continued uplift” in online sales of its Chill branded products following what it said was an “overwhelmingly positive response” to the brand following its roll out in the US.
In a trading update, the cannabidiol (CBD) specialist noted that Chill’s online orders increased by 190% month-on-month in October, which it said gave “strong credence” to the fact that the brand is starting to gain traction.
Meanwhile, Zoetic said following a previously announced US distribution agreement to sell its Chill brand of tobacco alternative CBD products, the initial rollout of its products is proceeding ahead of schedule and had been received positively, with distribution beginning across 125 new US stores in the first week alone.
While still at the early stage of execution, the company said the speed and extent of the distribution has “exceeded expectations” and left it in a good position to beat its launch targets if the pace continues.
"As we watch and learn from our distribution partners, we couldn't be any happier with the progress of this further rollout. We now seek to accelerate our distribution plans and look forward to reporting on the continued success of the Chill brand in the US and across the world", Zoetic co-chief executive Trevor Taylor said in a statement.
Meanwhile, Zoetic also said that it has made “constructive progress” in the preparation of its novel food application to the UK Food Standards Agency (FSA). The firm said it is making good progress towards meeting the FSA’s obligations and expects to complete its application “well ahead” of the March 31, 2021, deadline.
The company said it will work with the CBD division of international law firm CMS and use the FSA opportunity to “demonstrate its expertise in the field of compliance, thus building on its competitive advantage, whilst recognising the opportunities that may arise should competitors fail to meet the regulatory hurdle, potentially causing their products to be withdrawn from the market”.
Zoetic said that as it moves toward the final stages of the application process it will focus its efforts on sourcing organic ingredients for all of its branded products.
The firm also announced that its Blood Orange CBD oil has been “highly commended” by judges at GQ’s grooming awards for its properties as a sleep aid, which it said it anticipated to generate new interest in its range of premium CBD products.
"As we move towards the submission of a novel foods application to the FSA, we are pleased with the progress that has been made. This process has enabled us to further refine and improve our products, and the interest shown in them throughout demonstrates their popularity amongst consumers. We look forward to restocking our full range of even better tasting gummies in the very near future", said Zoetic’s other co-CEO Antonio Russo.
"We are thrilled that GQ's panel of industry expert judges has chosen to recognise Zoetic's blood orange CBD oil as one of the leading sleep aid products. This accolade stands testament to the efficacy of our CBD oils and we will continue to develop and produce high calibre products that deliver great results for consumers", Russo added.
Zoetic shares rose 0.1% to 42p in mid-morning trading on Thursday.
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