Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF)’s acquisition target Sierra Sage Herbs LLC (SSH) has expanded its US distribution footprint and is now selling a selection of its leading Green Goo products into an additional 20,000 points of sale across the US.
This gives SSH more than 110,000 points of sale in the country.
The increase in distribution points is expected to provide Creso Pharma with a growing sales footprint in the US, which it will be able to leverage once the proposed acquisition is complete. This is expected to happen in May 2022.
SSH’s new stockists are all traditional bricks and mortar stores and are made up of leading pharmacy chains and major retail groups. It already counts CVS, Walgreens, Rite Aid (NYSE:RAD), Albertsons Companies, Whole Foods, Walmart, AmazonUS and Target.com amongst others as its distributors.
This established network has allowed SSH to grow revenue from US$4.7 million in CY2018 to more than US$8 million in CY2020 and US$5.7 million in CY2021.
The expansion has the potential to assist SSH in further growing this revenue profile and gives weight to the potential cross-selling opportunities between Creso and SSH. These include the introduction of CannaQIX 50 lozenge products through SSH’s leading Good Goo brand.
New campaign to drive sales
To capitalise on the recent expansion and drive sales, SSH launched a campaign called ‘Destination First Aid’, which introduces new branding and displays.
These point-of-sale displays target consumers seeking head-to-toe body care and include innovative packaging sizes for leading Green Goo products which target dry skin, foot care, cold, flu and allergy relief and natural pain relief.
“Sierra Sage Herbs has grown an exceptionally strong distribution footprint in traditional bricks and mortar stores in the US with many of the country’s large retail groups and leading pharmacy chains,” CEO and managing director William Lay said.
“This is a very important development for Creso Pharma and once the acquisition completes, we will have the ability to leverage these points of sale to drive sales of our own established product suite, while benefitting from the ongoing sale of SSH products.
“The group also continues to witness positive online sales growth and this is testament to the strong brand loyalty Jodi and her team have built in recent years.”
Creso and SHH are also advancing multiple other developments, which Creso expects to have the potential to unlock strong sales growth.