HempFusion bets on success with major FDM partner, 'digital relaunch' to drive brand

By Hank Schultz

- Last updated on GMT

©Getty Images - Nastco
©Getty Images - Nastco

Related tags CBD and Hemp

HempFusion, a manufacturer of CBD-containing ingestible and topical products, said a successful initial public offering and a refocus of its digital sales efforts will position the brand to become one of the major hemp/CBD players in 2021.

The brand is the brain child of Jason Mitchell, ND,  former chief science officer of Country Life Vitamins. The brand, now called HempFusion Wellness, Inc., launched at the Natural Products Expo East trade show in 2016​, at a time when the sky seemed to the limit for CBD products.  HempFusion Wellness also houses another division that manufactures the Probulin line of probiotics.

Broad spectrum extract

From the beginning, Mitchell said the company has been focused on the entourage effect offered by a broad spectrum of cannabinoids. At first the company was branding its extract as Whole Food Hemp Extract. It now uses terminology Panoramic Hemp Extract to describe its formulation approach.  Mitchell said this was done to provide a product that has functional advantages over CBD distillates and isolates. 

We came together as a group to provide products that help people, but we knew that we had to do it right, not because this is a hot space that we think we can make some money in,” ​Mitchell told NutraIngredients-USA at the time of the HempFusion launch.

In January the company completed a successful initial public offering on the Toronto Stock Exchange valued at $17 million, a transaction that valued the shares at $1 a piece.  The company trades in the US on the OTC board and the stock has shown significant volatility, zooming to more than $3 in February and falling to less than $1.80 yesterday.

Novel Foods application,  FDM success to help drive brand

In a corporate update released recently, Mitchell said several developments will drive the brand forward.  The company recently submitted a Novel Foods Application in the UK.  In addition, the company said it has performed well with a major FDM retail partner.  The brand’s footprint has expanded more than 10 fold with that chain, expanding from 78 stores to 798 stores.

And the company claims it has completed a ‘digital relaunch’ for both HempFusion and Probulin products, which increased online traffic for the two brands by an order of magnitude.  The company claims SPINS data shows its Probulin line of products is growing faster than any of its major competitors.

“Over the past year, we have experienced multiple challenges brought on by the global pandemic. These challenges have impacted the Company and its supply chain partners, including retailers. They have also brought about a renewal in the way HempFusion thinks and operate as a company,”​ the corporate statement said.

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