Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) is moving along with its acquisition of Sierra Sage Herbs (SSH), which will deliver the company its maiden entry into the US.
By completing the acquisition, Creso Pharma will gain immediate access to a US footprint and opportunities for both parties to scale the product suite, grow sales and leverage existing sales channels.
Several product development initiatives are pending, with new products pending and an initial product launch planned for a new line of Green Goo Immunity Deodorant in February 2022.
The product is preapproved for sale with CVS, AmazonUS and others retail outlets.
New product ingredients include functional mushrooms and other herbal formulations.
Based in Denver, Colorado SSH leads consumer packed goods with a focus on plant based and CBD products.
Their ‘Green Goo’ and ‘Southern Butter’ ranges are currently sold across 90,000 distribution points in the US, including retail giants such as CVS, Walgreens Walmart, AmazonUS and Target.
The acquisition of SSH by Creso will give it access to the world’s largest and fastest growing CBD market in the US, which is expected to reach US12 billion (AUD$17 billion) by 2026.
New products planned for development
Both companies have pushed a number of new products, with SSH anticipating a new line of herbal ‘immunity’ deodorants which boast ingredients of functional mushrooms and other herbal formulations.
The mushrooms sector was of initial interest, particularly in variety of properties which can deliver unique health benefits.
Functional mushrooms are a sector earmarked for entry – anticipated to be worth US$19 billion (AU$27 billion) by 2030.
The deodorants line is being launched under the Green Goo brand, and will initially be sold through CVS, Army & Air Force Exchange Service, AmazonUS and Natural Grocers Vitamin Cottage.
A special Valentine’s Day massage oil and pillow spray launched by Southern Butter has also been marked for development in the first quarter.
Creso Pharma is confident their partnership with SSH will result in an immediate increase in sales. The acquisition stamps a solid footprint for the company in the US and creates a strong foundation to accelerate the growth of its projects.
Creso Pharma CEO and Managing Director William Lay said SSH has a well-established network of key retailers which can be leveraged for the new products.
“In a short amount of time, the strong synergistic benefits resulting from the proposed acquisition are being witnessed with the launch of the new Green Goo immunity deodorant.”
“I look forward to updating shareholders on the continuing work with SSH as we move to finalising the acquisition at the upcoming shareholder meeting.”
Written by Duncan Bailey