HempFusion Wellness Inc (TSE:CBD.U) (OTCQX:CBDHF) (FRA:8OO) announced it has officially launched its Private Label division after receiving a 10 stock keeping unit (SKU) private label deal with a publicly-traded US national grocery retailer.
The company said the initial order is for about $250,000 and is scheduled to ship in July 2021.
“This expansion of our relationship with this retailer is a testament to the trust, long-standing partnership, and success that we and our branded products have already achieved,” HempFusion Wellness CEO Jason Mitchell said in a statement.
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“We are honored to receive this award and look forward to how this has the potential to significantly contribute to the overall success of this particular retailer and HempFusion and its family of brands,” Mitchell added.
Jon Visser, HempFusion’s chief revenue officer, also commented, stating: “We anticipate that this initial $250,000 order is just the beginning and pending sell-through velocity and distribution, we expect this account to generate north of $500,000 for HempFusion in 2021 and upwards of $1,000,000 or more in 2022.”
HempFusion noted that to fulfill current and future orders of this magnitude, the company is bolstering its staff and investing further in additional structural support at its Topeka, Kansas distribution facility, which will include an investment in additional equipment and human capital to assure distribution efficiencies.
It added that the name of the US grocery retailer is not disclosed due to non-disclosure obligations.
HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to about 4,000 retail locations across all 50 states of the US and select international locations.
In addition, its wholly-owned subsidiary Probulin Probiotics is one of the fastest-growing probiotics companies in the US, according to data technology company SPINS. The subsidiary offers the unique MAKtrek 3-D system that ensures more probiotics arrive alive.
Contact Sean at sean@proactiveinvestors.com