BioHarvest Sciences Inc. (CSE:BHSC, OTC:CNVCF) said the third-quarter sales orders of its flagship VINIA red grape supplement reached a record of US$1.71 million, representing a 145% growth year-over-year and 81% growth compared to the second quarter of 2022.
The company said following the mid-August scale up of its marketing activities, 3Q sales in the US reached US$1.08 million, which represents a 350% increase over the year-ago period and 200% over the previous quarter.
This includes five times the number of new customers buying VINIA, a red grape cell product containing the whole matrix of polyphenols contained in red grapes, which is aimed at improving cardiovascular health, according to BioHarvest.
READ: BioHarvest Sciences wins The Business Intelligence Group’s 2022 Sustainability Leadership Award
The company noted that “85% of total VINIA customers who purchased via VINIA.com are subscription-based and 90% of active subscribers are for three months or greater. This demonstrates customer commitment to the VINIA brand and represents a significant customer lifetime value.”
Meanwhile, the cost of acquiring customers in the same quarter declined by more than 50% compared to 2Q 2022. BioHarvest said it will add radio and other channels to its current traditional and social media campaign in the fourth quarter.
BioHarvest said the Israeli market continues to demonstrate increased consumer adoption of VINIA and delivered a record US$627,000 in sales, representing 39% growth over 3Q 2021 and 10% growth from 2Q 2022.
Total new customers in Israel grew 19% year-over-year, and the average spent per transaction reached US$210 in September, according to BioHarvest.
Scott McCune, a member of the BioHarvest board of advisors, said the Vancouver, BC and Rehovot, Israel-based biotech company expects to increase the products it delivers to North America.
“Decreasing the cost of acquisition and the fast scaling of the business are encouraging achievements as they look to build a highly profitable business and world class brand," McCune, the founder of McCune Sports and former SVP in the Coca-Cola Company, said in a statement.
CEO Ilan Sobel said strong 3Q results are a product of the company’s business model.
"These 3Q sales results and our ongoing breakthroughs in the cannabis development represent significant achievements in our biotech journey. The record results of 3Q show that we are on the right path for healthy growth and to achieve our financial goals, which include becoming cash-flow positive by the end of 2023," Sobel said in a statement.
BioHarvest said it plans to announce the details of its new cannabis product on October 25.
BioHarvest Sciences, listed on the Canadian Securities Exchange, has developed a patented bio-cell growth platform technology capable of growing the active and beneficial ingredients in fruit and plants, at an industrial scale, without the need to grow the plant itself.
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