Bod broadens UK sales footprint as CBD skincare market grows

3 minute read

By Hannah Goldman. Published at Jun 17, 2021, in Small Caps

Following the launch of two new CBD-based products under the CBII brand, Bod Australia Limited (ASX:BDA) today announced that it has broadened its sales footprint in the United Kingdom via two new online retailers.

Bod’s entire range of CBII products will be stocked in the UK by two of Europe’s leading online retailers, Lookfantastic and Feelunique, following agreement secured by Bod’s exclusive partner Health & Happiness Group Limited.

Both retailers have a combined 15 million visitors per month across both UK websites, considerably broadening the CBII brand reach, customer base and distribution footprint in a large and growing market.

The CBD skincare market is expected to grow to US$3.48 billion in value by 2026, and hence these new retail partner agreements leave Bod well placed to capitalise on such growth.

Lookfantastic is not only Europe’s number one online premium health and beauty retailer, but one of the world’s most successful premium online beauty retailers, generating 10 million visits per month, stocking over 660 brands and shipping to over 200 countries.

The group has grown revenue share 40% year-on-year for the last three years and is underpinned by unrivalled technology, supply chain management and a team of world-class experts in the beauty and healthcare space.

Initially, Lookfantastic will focus on the sale and distribution of CBII products in the UK, with both parties exploring the potential to expand availability to other countries where CBD is legally permissible for sale.

CBII products will be launched on Lookfantastic’s website in the coming weeks.

Feelunique is one of Europe’s leading premium e-commerce beauty retailers with a large and established UK customer base, stocking over 30,000 products and driving over five million unique visitors per month.

The group will stock Bod’s CBII range in its unique online marketplace, which is a designated area and expected to launch this month.

The new stockists come following an agreement between each respective company and Bod’s exclusive global partner, Health & Happiness Group Ltd (HKSE: 1112), broadening the CBII brands exposure in the UK, as well as increasing brand reach and potential customer base.

Bod expects that broadening CBII’s brand exposure, reach and potential customer base will result in increased sales revenue in the UK market. Given the early stage of the development of the UK CBD market, Bod is unable to reliably estimate the additional sales revenue that may be achieved at this time.

Bod has been advised that the agreements are non-exclusive, do not establish minimum sales volumes and have a minimum 12-month fixed term. The company has also been advised that there are no material conditions precedent to the agreements.

CBII expands its product offering

CBII was launched in collaboration with H&H in December 2019, and has recently expanded its offering with home fragrances and new CBD-based skincare products.

The total number of available SKUs is now 17, and three new products are being introduced in the coming months in order to keep up with the growing demand for Bod’s unique products.

Commenting on Bod’s expansion of its UK sales footprint, CEO Jo Patterson said: “The Company continues to achieve strong demand for its unique range of CBD-based products in the UK market from consumers and retailer partners, and new stockists such as Feelunique and Lookfantastic are further evidence of our growing market presence in the region.

“Both of our new retail partners have large and established customer bases and we expect that these stockists will underpin growth in CBD and hemp sales with our revenue profile continuing its upward trajectory.”

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