Prepping for 1st Quarter 2020 CBD Launch.
Revolutionizing the Way CBD is Marketed
Stage I of the CBD explosion is in full gear, already generating billions in sales collectively from tinctures (bottles), capsules, oils, and skin creams, gummies, pet treats and infused food and beverages.
Nass Valley Gateway LTD is a publicly-traded company in the Cannabis category. In early 2019, Nass Valley merged with Advanced Bioceuticals Limited, a company focused on the development of a fully integrated strategy to bring organic, hemp-based, CBD products to market. These products will be sold under the Nass Valley Gardens, DermaPharm, and The Duchess brands via retail, wholesale, direct response, and digital sales channels.
Fortunes have already been made and are continuing to be made in CBD – but nothing in comparison to what lies ahead, over the next 3-5 years. With as much as 80% the cannabis stock market bubble deflating in the past 12 months (leaders like Aurora and Canopy Growth’s share price are both down near 70%), now is the time to revisit the current leaders, discover future leaders and establish investment positions.
CBD leader Charlotte’s Web (CWBHF) alone, as an example, just reported sales of $25 million in the past three months, (Q3) and near $100 million for the past year. In the same period in 2016, they had sales of only $3 million. That’s an 8-fold sales increase in just three years. Consumers are buying CBD and buying a lot of it – often experimenting with Companies they know little about.
A bigger sales driver, Stage II will commence when the FDA finds a way to add a level of regulatory oversight (safe production) for CBD to be used as an ingestible. While CBD is of course readily available today, the major retailers (CVS, Walgreens, Walmart, Whole Foods, etc.) who will eventually direct billions more in purchases – currently remain on the sidelines, only permitting the sales of topicals for the time being.
Stage II will of course first benefit CBD marketers who are on the shelves of these retailers. But soon after it will also benefit all CBD marketers, as CBD becomes mainstream in terms of consumer acceptance when millions of buyers think for the first time “CBD is on the shelves of Walgreens, so it has to be safe, maybe it can help me sleep.” Like with most other consumer products, CBD buyers will likely make their first purchase retail, then re-order online for convenience, or enroll in a subscription service to fulfill their monthly needs.
Because of the uncertainty around CBD regulations, most grocery stores and drug stores do not carry CBD products intended for human consumption. CVS and Kroger have recently added CBD products to their stores, but those chains only carry topical products like lip balms and not CBD for consumption like gummies and capsules or tinctures.
But the door has been opened into the retail world and word of mouth that CBD works, continues to spread like wildfire amongst new users. The saying, “You ain’t seen nothing yet,” fully applies to today’s CBD market. The opportunity for early brands to continue growth is essentially ‘in the bag’ and the opportunity for new startups to flourish has never been greater.
Nass Valley Gateway (NVG.CN NSVGF) – Newly Launched Startup Worth Watching.
Like with any new and fast-growing industry there will be established leaders that continue to succeed and new startups which seemingly appear out of nowhere.
In the coming years, some of the early leaders will go on to become Blue Chips, some will flatten out and/or stagnate and some will outright fail. But the most exciting opportunities will be amongst high-risk, high-reward startups and we believe Nass Valley Gateway is one of the more experienced and sophisticated players, with the marketing savvy and drive to succeed.
For investors in early-stage startups, the payoff can be big and fast – using Charlotte again as an example, it was recently valued at over $1 billion, creating hundreds of millionaires in less than 5 years, who were willing to take early-stage risk. The key then, as it is now – is finding the newly formed startups who have a clear understanding of the power of marketing.