How the US Hemp Industry Continues to Boom Amidst Pandemic: COVID-19 Vs CBD
Point Roberts, Washington and Delta, British Columbia--(Newsfile Corp. - May 28, 2020) - Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a special snapshot reporting on the continued growth in sales and product offerings in the US hemp industry and how this traction is beginning to attract outside investment.
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Earlier this month, SinglePoint Inc. (OTCQB: SING) started their Q2 with strong numbers achieving over $1,000,000 in sales throughout Q1 a 309% increase and a focus on continued growth. After evaluating reports for Q2, SinglePoint's Hemp vertical has been on track to double sales in its second quarter alongside the launch of 1606 Hemp six-pack counter top display. 1606 Hemp has seen a sales growth rate of 133% this quarter over the previous, a 233% growth in sales up to this point of the month compared to the previous month at the same point. The company has placed a focus on self-generated in-store placement by hiring professional sales representatives to acquire new stores for the sales of its products over the next four weeks. 1606's goal is to grow by more than 250 retail accounts throughout multiple states, which the Company surpassed in the first couple weeks by placing product in over 400 stores throughout 20 states.
According to management, stores are selling through product quickly and many have already reordered additional 1606 Hemp inventory.
As the company continues to see success, management believes 1606 Hemp will be able to provide approximately $2,750,000 to $5,500,000 in revenue selling to just 1,000 stores. "As the roll out is successful and we achieve our goals over the next four weeks, 1606 Hemp will bring on additional individuals to scale up to as many as 2,500 stores as quickly as possible in order to achieve reorders from 1,000 stores. Management believes the current total addressable market is approximately 125,000 locations or more."
"I've been trying to get friends and family to make the switch to hemp for years, your product is changing a lot of hearts. Thank you"
- Al, 1606 Hemp Customer
1606 Hemp is working to become the leading recognized brand in the combustible hemp market which is the second fastest growing market in the hemp category. The big differentiator for 1606 Hemp is the ability to place a countertop display unit at retailers across the nation. "While others are working to dominate the online market, we have a general belief this type of consumable product will continue to be bought in convenience stores, smoke shops and bodegas throughout the nation." However, the company provides an amazing online experience for consumers to purchase 1606 Hemp and has amassed an online following through social channels reaching over 17,000 followers on Instagram and driving traffic to its online site at 1606Hemp.com
BDS Analytics and Arcview Market Research project that the collective market for CBD sales in the US will surpass $20 billion by 2024 while New York-based investment bank Cowen & Co, estimates that the market could pull in $15 billion by 2025. The combustible hemp market currently represents approximately 2% of the overall CBD market, but with a 250% growth from 2017 to 2018, Brightfield Group, a Chicago-based cannabis market research firm, identifies dried and combustible hemp flowers as one of the fastest-growing segments of the CBD market. With the passage of the 2018 Farm Bill and the mainstreaming of CBD hemp, the market is growing rapidly. There is a significant need for reliable suppliers with the capacity to move products.
"The consumer CBD industry faces temporary challenges in the U.S., but the industry has long-term upside, valuations have pulled back, and we think Reliva has a unique channel and price positioning that allowed it to perform quite well pre-COVID," Cantor Fitzgerald analyst Pablo Zuanic wrote in a note to clients on Thursday.
As more companies continue to see strong sales, high consumer demand and focus more on premium high quality products, there is no doubt that CBD/hemp will continue to flourish, even amidst regulatory uncertainty.
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