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Zoetic surges as it inks landmark distribution deal for Chill products

Last updated: 09:49 24 Nov 2020 GMT, First published: 07:25 24 Nov 2020 GMT

Zoetic International PLC - Zoetic inks landmark distribution deal for Chill products

Zoetic International PLC (LON:ZOE) said it has signed a landmark agreement with the Asian America Trade Association (AATAC) that will bring its Chill brand of cannabidiol (CBD) products to tens of thousands of retail stores across the US.

AATAC is one of the largest trade associations in the US and represents a majority of the nation’s 154,000 convenience stores.

READ: Zoetic notes uplift in online sales of Chill products following overwhelmingly positive response to US rollout

The CBD specialist said the deal will facilitate its introduction and recommendation of its products to over 88,000 AATAC partners which will pave the way for Chill products to be sold from “eye-catching new point of sale display stands at high footfall convenience stores, gas stations and corner stores” in all US states.

Zoetic said convenience stores are a “critical feature” in its distribution strategy for Chill and that the AATAC partnership positions it well to increase their availability within the market at a speed and scale that would not be possible otherwise.

In preparation for the rollout, the company said it is working with partners to ensure it is ready for mass production and that it will release further details on these developments in due course.

"This game-changing partnership represents a real watershed moment for Zoetic. With a reach across tens of thousands of retail outlets, the Company will have unprecedented access to the market and can continue on its mission to bring the Chill brand to the local stores and pockets of every consumer", Zoetic’s co-chief executive Trevor Taylor said in a statement.

"We could not be more pleased to have reached an agreement with the AATAC, and look forward to building ever closer relationships with the Association and its affiliates. Convenience store outlets reach more Americans each day than grocery, drugstore, dollar store and big box locations combined. Businesses within the lifestyle consumables field have experienced outstanding success through similar deals with the AATAC, and this agreement provides the Chill brand with an unparalleled route to the market", added fellow co-CEO Antonio Russo.

Shares in Zoetic surged 20.8% to 52.7p in early deals on Tuesday.

--Adds share price--

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