Cannabis play Creso Pharma expands tea sales, makes its first move into Africa
Health & Biotech
Health & Biotech
Link copied to
Special Report: The distribution deal today marks the start of Creso’s footprint into the potentially big African market for cannabidiol products.
Global medical cannabis innovator, Creso Pharma (ASX:CPH), has strengthened its presence in Africa, signing a bilateral agreement with a pioneer South African company, Cannabis Queen, to distribute its cannabidiol (CBD) tea products in the continent.
In the bilateral deal, Creso will market and distribute its tea range in African countries through Cannabis Queen, while in return distributing Cannabis Queen’s Anti-Aging Serum 30ml and Argan and Cannabis Hair Treatment 50ml products in Switzerland and Europe.
The tea range is Creso’s newly launched CBD tea products under the established and recognised cannaQIX brand. The products include cannaQIX tea, cannaQIX NITE tea and cannaQIX Immunity tea brands announced earlier this month.
These tea products are based on a second-generation, newly developed technology optimising CBD content and taste, and as today’s deal has proven, provides the company with the opportunity to expand its customer base into the mainstream food and beverage market.
The agreement today will also provide Creso with a new footprint and market in Africa, making its CBD tea products available through multiple channels including established online stores, retail distributors, specialist wellness shops, as well as spas and pharmacies.
Cannabis Queen is one of the first companies in South Africa to focus on delivering CBD products to the market, following a decision by the South African government in 2019 to legalise consumer CBD products in the country.
Since that year, the Johannesburg-based company has developed a range of CBD-based topical products that are made from full-spectrum CBD oil and advanced formulas with enriched botanicals. According to Creso, the raw materials used in Cannabis Queen’s products are sourced locally and ethically, and have been shown to be more effective than competing products.
In the reciprocal agreement today, Creso Pharma will begin to market and distribute Cannabis Queen’s products in Switzerland and Europe.
The Aging Serum 30ml is an all-in-one facial serum formulated to revitalise the skin, while the Argan & Cannabis Hair Treatment 50ml is infused with CBD and essential oils – which is meant to stimulate visible hair growth and prevent hair loss.
The deal will take advantage of Creso’s established distribution footprint of over 2,100 points of sale across Switzerland, including pharmacies, nutrition shops, and retail groups such as leading department store chain Manor.
CEO Swiss International Operations, Jorge Wernli, is optimistic about entering the new African market.
“We are very proud to be able to market and distribute our topical products in the African continent with Cannabis Queen, South Africa. The group has an established footprint and reputation, which we will be able to leverage to drive growth and increase visibility in a strategic and emerging market.”
The Creso share price rose by 3.5 per cent today following the announcement, and has risen by more than 150 per cent over the past 12 months.
This article was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.