Early this year, the U.S. Farm Bill passed. And it included a provision to legalize industrial hemp, which just so happens to be the main source of CBD. Before the bill, CBD was in a legal grey area with limited distribution. But now it’s possible for CBD stocks to flood into a huge variety of markets, from major retailers to pet stores to drug stores and beyond.
As the global pet care market continues it seemingly never-ending rise, year after year all things point to the fact that CBD infused products will be among the winners in the race to revenues. Given the large size of this industry, it’s no wonder investors are expecting CBD-for-pets to garner a large share of the market.
LinkResPet (OTC: LRSV) has a lot going for the company. Not only is the company perfectly positioned in the domestic CBD market, but also the stock is remains relatively under the radar.
The company recently expanded its pet line due to strong market demand that should reward shareholder and launched its online shop (www.linkrespet.com/shop/) in May, which now delivers orders across the US and Canada.
Puppy love does in fact go a long way. As the booming global pet market continues to grow, the market is estimated to have reached $125 billion in 2018. Accounting for 73% of that is global pet food sales, which alone hit $91 billion last year.
In tandem, CBD for pets is projected to be among the fastest growing CBD sectors. Last year alone, sales of CBD pet products quadrupled to $32 million from $8 million in 2017, according to the Brightfield Group. But there is a further potential for growth, with a New Frontier Data report estimating the sector to reach $125 million by 2022. In fact, pets are touted to be the “hot new cannabis customer”, as owners use CBD to ease pains and anxiety in their animals.
LinkResPet is settling as a strong contender in the North American market and is positioned to reap the rewards from the surge in demand for CBD pet products. The next step: hiring sales representatives – a key initiative that will allow the company to expand its reach and sell its products in a variety of retail suites, through wholesale online and in brick-and-mortar shops on US Highways.
Charlotte’s Web Holding Inc. (OTC: CWBHF) announced the expansion of its canine-focused pet products, launching an all-new 12 SKU lineup comprised of hemp-extract infused chews, flavored and unflavored oils, and a topical balm. Since introducing its first PAWS™ hemp-extract product for pets in February 2017, interest has exceeded all expectations, producing high demand and sales growth. With today’s launch of the expanded pet product line, Charlotte’s Web aims to increase its market share in the rapidly growing market segment for hemp-derived CBD pet products.
Colorado based Charlotte’s Web said Kroger Co. stores in multiple states have begun carrying its topical hemp CBD extract oils, with a plan to roll out to 1,350 locations in Arizona, Arkansas, Colorado, Georgia, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Montana, Nevada, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia, Washington, Wisconsin and Wyoming.
Charlotte’s Web noted that the launch with Kroger marks its largest distribution ever through a single retailer. As of May 8, 2019, Charlotte’s Web has surpassed 6,000 retail locations across the United States as consumer awareness and retailer interest surrounding hemp and CBD has reached all-time highs. More than 2,300 new retail doors were added since the start of the year – more than in all of 2018 – significantly expanding the Company’s physical brick and mortar retail reach. To support this growing consumer and retailer demand, the Company is doubling the number of acres planted for 2019. “We planted 300 acres of hemp in 2018 and harvested 675,000 pounds of raw hemp compared to 63,000 pounds in 2017. For the 2019 season we are doubling the acres planted to ensure we will have the volumes required to meet anticipated demand through 2020 and into 2021. We share in the market’s enthusiasm and are confident in our long-term opportunity to increase our brand and market leadership position,” added Mr. Moallem.