Chill Brands Group PLC (LSE:CHLL, OTCQB:CHBRF) told investors it has launched its CBD products into select cannabis dispensaries in the United States as part of a new sales pilot programme.
Through a pilot scheme, its products will be made available in 20 fully licensed dispensaries initially, to gather sales data and customer insights, and it is anticipated that additional locations will be onboarded through the fourth quarter of 2022. The pilot will be delivered with sales and retail logistics firms Bellator and Dyspense, Colorado-based companies with specific expertise in cannabis products.
Later, the company plans to scale its dispensary sales to additional locations across the US.
"We are excited to be expanding our US retail distribution footprint once more,” Chill Brands chief executive Callum Sommerton said in a statement.
“This pilot programme is an opportunity to diversify the sales venues in which Chill products can be found.
“As demand for novel, non-psychoactive products continues to grow, we will be well positioned to offer Chill CBD to target consumers both to complement their cannabis purchases and as a non-intoxicating recreational alternative to THC.
“We are grateful to our partners at Bellator and Dyspense for their support, and look forward to working with these industry experts as we seek to scale our operations within the dispensary environment."
Chill Brands noted that dispensaries in Colorado alone last year generated over US$2bn through the sale of cannabis-based products and highlighted that consumers using such stores typically have higher levels of discretionary income than convenience store shoppers. These consumers are already aware of and interested in cannabinoids including CBD, and are open to trialing new brands and products, the company added.
Timothy Ruybal Jr, Dyspense Technologies founder, added: "Dyspense looks forward to the launch of the Chill brand into Colorado dispensaries, where we have seen a steep increase in CBD only product sales over the last 24 months.
“Chill products provide a unique alternative for tobacco and THC consumers and we look forward to working with the company to expand its footprint."