Creso’s launch of cannaQIX® tea products opens up new opportunities

By Trevor Hoey. Published at Apr 1, 2021, in ASX Biotechs

Creso Pharma Limited (ASX:CPH; FRA:1X8) has launched its proprietary CBD-based teas products in Switzerland with other European markets, including Germany, earmarked for near-term expansion.

Three new products have been launched under the cannaQIX® brand and include cannaQIX® tea, cannaQIX® NITE tea and cannaQIX® Immunity tea.

While the additional revenue streams generated by the launch of these products will be important for Creso Pharma, it will also assist in promoting the broader cannaQIX® brand.

Creso has a proven track record for successful product development and commercialisation, with its cannaQIX® brand of products now available in Switzerland and several European countries.

The three new teas as illustrated below have been developed based on a new second generation innovative technology that optimises the CBD content in compliance with regulations and allows for a better taste.

Features of new products

The development of the new tea products is a groundbreaking technological achievement for Creso Pharma and provides the company with a significant competitive advantage.

Creso will now progress the use of the new technology in the manufacturing of its cannaQIX® lozenge flagship products.

Looking specifically at the three different products, cannaQIX® tea is designed to help the management of stress, supporting a better quality of life, while cannaQIX® NITE tea should be consumed at night with a view to providing a better night’s sleep.

The cannaQIX® Immunity tea provides supplements and taste to optimise well-being.

Having completed the necessary legal and regulatory due diligence, the new tea products can now be legally marketed and sold throughout Switzerland, leveraging Creso’s established distribution network comprised of over 2,100 points of sales across Switzerland where Creso’s cannaQIX® products are already being sold.

These include pharmacies, pharmacy networks, drugstores, health nutrition shops and large retail groups including leading department store chain Manor.

Creso also supplies all major wholesalers in the country including Galexis, Amedis and Voigt.

This provides the company with an established footprint, significantly de-risking the launch of each new product it brings to market.

Commenting on the launch of the new products and the scope for taking advantage of associated opportunities, commercial and development director Doctor Gian Trepp said, “We are proud to have completed the finalisation of this ground-breaking technology for our new CBD tea products, which opens a number of new and globally applicable opportunities for Creso Pharma.

"The new products and formulation provide a very tasty CBD tea that will become a key component in the future production of the cannaQIX® lozenges.

"We look forward to providing further updates on future product additions and our European expansion initiatives.”

Proposed launch of hemp tea products in Germany

Management will also look to launch its new hemp tea products in Germany following a recent decision by the German Federal Court of Justice to annul previous charges against hemp tea sellers which had temporarily delayed the scheduled rollout of the company’s hemp tea products in the September quarter of 2020.

The favourable decision has removed ambiguity over the guidelines concerning the sale of food products based on hemp flowers and leaves in Germany, leaving Creso well-positioned to actively market and sell its hemp tea products in that jurisdiction without any further regulatory approvals or hurdles to overcome.

Upon successful rollout of its new products in Switzerland and Germany, Creso will explore the opportunity to expand the distribution of its hemp tea products into other European companies, and in line with its standard practices, the group will undertake the necessary due diligence to confirm the legality of the sale of its products in each new jurisdiction as required.

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