Creso is perfectly poised for growth in the huge Brazilian market
Health & Biotech
Health & Biotech
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Special Report: The company’s distribution network will give it access to over 4,200 points of sale across three of Brazil’s major metro areas – for an estimated target market of 14 million consumers.
For medicinal cannabis company Creso Pharma (ASX:CPH), positioning for growth across multiple global markets has always been a core part of its competitive strategy.
And as a result of some disciplined execution in the wake of some important regulatory changes, Creso now has an opportunity to capitalise on that advantage in the Brazilian market.
The company has signed a commercial partnership with the Brazilian division of DHS Business International, a global healthcare services provider with additional operations in the US, Africa and Portugal.
As part of the deal, Creso and DHS will distribute a number of cannabidiol (CBD) medicinal cannabis products direct to consumers, including Creso’s GMP “Swiss-made” CannaQIX® product range.
It follows a recent decision by Brazil’s National Health Regulatory Authority (ANVISA), permitting the sale of CBD products through direct retail channels such as pharmacies.
And as a direct result of its commercial agreement with DHS Business International, Creso will have access to around 60 per cent of the retail distribution network across three major Brazilian cities; Sao Paulo, Rio de Janeiro and Parana.
“This would provide Creso with over 4,200 points of sale across three major areas,” the company said, with an “estimated target market of 14 million consumers”.
With some regulatory clarity from Brazilian authorities, the two companies are now working to have Creso products available for sale in Brazil in Q4 2020.
Creso CEO and Co-Founder Dr. Miri Halperin Wernli said the opportunity to maximise distribution in Brazil was a result of the company’s global mindset, and “quick thinking” in the wake of the policy change from ANVISA.
“DHS has extensive experience and strong partnerships throughout Brazil and Latin America more broadly,” Dr. Halperin Wenli said.
And the size of those markets will provide Creso with a “large opportunity in the coming months”.
“We look forward to working with DHS to ensure our products are brought to market as quickly as possible. The company will provide ongoing updates to shareholders as developments progress,” she said.