Sales and development
In December 2021, The Company signed a letter of intent to acquire 100% of Polish Hemp Juice Sp. Z oo shares. The acquisition is expected to be completed in January 2022. With the acquisition of Hemp Juice, the group will significantly increase its sales. The company will report detailed pro forma figures for the new group in connection with the completion of the acquisition.
During the second half of 2021, Hemply Balance signed agreements with almost ten recognized retailers in the Swedish market, including pharmacy chains such as Kronans Apotek, MEDS Apotek, Apotea and Apohem. The company has also entered the Swiss market by signing with distributor Götz & Brands. The Swiss collaboration has resulted in the company’s products being marketed at retail to several renowned retailers such as Manor, Zurrose, Perfecthair and Frauendrogerie. Overall, the new partnerships mean that Hemply Balance has seen strong B2B retail growth during the second half of 2021.
The success of the collaboration with Götz & Brands also led to an expansion of the partnership. Starting in the first quarter of 2022, Götz & Brands will boost Hemply Balance’s operations in both Switzerland and Austria. This operation means both B2B-retail and directly to consumers through the domain hemplybalance.ch.
In addition, the company signed a letter of intent with Japanese Life Activation to enter the Japanese CBD market in 2022.
Market situation
The European CBD market continues to grow steadily. In line with market development, most countries have introduced an increasingly liberal regulatory framework for CBD. In June 2021, the French Supreme Court ruled that CBD could be sold at retail in physical stores.
At the same time, there is a trend in the international market where countries are increasingly legalizing cannabis for adult or medical use. The European market is currently undergoing a process in which a handful of countries are expected to legalize cannabis by 2022. Countries such as Germany and Luxembourg are currently undergoing a process of national legalization of cannabis.[1]
The European CBD oil market is expected to have an annual growth rate of 40% between 2022 and 2029, and the market value is expected to reach $ 8.50 billion in 2029.[2]
Perspectives
With optimistic market sentiment, Hemply Balance has a positive orientation. The market outlook in terms of regulation is also positive at EU level. With a more explicit regulatory framework, more opportunities for product expansion and development open up. The company intends to continue to expand into the European market continuing with its acquisition strategy and strong organic growth.
Comment
“We continue to grow through our recognized strategy: consolidation in Europe through more acquisitions in our industry and organic growth driven by additional sales channels and an expanded product portfolio,” says Jonas Lenne, CEO of Hemply Balance.
About Hemly Balance
Hemply Balance is a healthy food company that sells safe and high quality hemp products for intimate and personal care, as well as hemp oil and hemp capsules outside of Sweden. The company’s goal is to consolidate its position as a leader in high-quality hemp products in Sweden and become a major player in Europe.
Augment Partners AB, tel. +46 8 604 22 55, email: info@augment.se is the company’s mentor.
For more information, visit the Hemply Balance website at www.hemplybalance.com
[1] New Frontier Data, 22 by 22 – Cannabis Industry Statements and Predictions, January 2022.
[2] MarketWatch, Europe’s CBD oil market size, share 2022 growing rapidly with recent trends, development, revenue, demand and forecast until 2029, 27-12-2021.
