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Creso agreement with Cannabis Queen expands POS network to 3100
4 minute read
Creso Pharma Limited (ASX:CPH; FRA: 1X8) has signed a bilateral commercial agreement with Cannabis Queen, South Africa to market and distribute Creso’s cannaDOL topical line and cannaQIX® tea range in African countries.
As part of the agreement, Creso Pharma will also market and distribute Cannabis Queen’s Anti-Aging Serum 30ml and Argan & Cannabis Hair Treatment 50ml products in Switzerland and Europe.
The deal expands Creso’s product distribution network to 3100 combined points of sale across Europe and Africa.
Cannabis Queen is a skincare company based in Johannesburg, South Africa that was established in May 2019 following a decision from South Africa’s Department of Health, making cannabidiol available for consumer use in the country.
A win-win for both companies
Underlining the commercial benefits for Creso Pharma, CEO Swiss International Operations, Jorge Wernli, said, “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 our visibility in a strategic and emerging market.
"This agreement also represents a meaningful strategic complementation of the current Cannamics (cannaQIX®) business with our very successful partner Pharma Dynamics South Africa.
"We also look forward to initiating marketing and distribution initiatives for the Cannabis Queen skin and hair products, further optimising the company’s high quality value proposition to our end-customers.’’
Cannabis Queen became one of the first companies of its kind in South Africa and is now focused on delivering top quality products to market.
The group has a range of CBD-based topical products that are made from full-spectrum CBD oil and advanced formulas with enriched botanicals.
All raw materials are locally and ethically sourced and the group’s products have been shown to be more highly effective than competitor’s products.
The agreement is non-exclusive on either party, and has an initial term of one year which will automatically renew after one year based on the adherence to normal commercial terms.
Increased visibility in a fast-growing emerging market
As part of the agreement, Cannabis Queen will market and distribute CannaDOL and Creso Pharma’s recently launched CBD-based products through multiple channels including its established online store, direct-to-consumer sales, retail distributors, specialist wellness shops, beauty salons, spas and pharmacies.
Creso Pharma’s CBD-based tea products have been introduced under the CannaQIX® brand and include cannaQIX® tea, cannaQIX® NITE tea and cannaQIX® Immunity tea.
The agreement provides Creso Pharma with an established footprint into the African market and significantly de-risks the launch of new products the company brings to market.
Creso Pharma will also market and distribute Cannabis Queen’s Anti-Aging Serum 30ml and Argan & Cannabis Hair Treatment 50ml products in Switzerland and Europe.
Both products include ethically sourced South African essential oils, making them effective and attractive to consumers.
Creso poised to distribute to 2100 points of sale in Switzerland
The Cannabis Queen Anti-Aging Serum 30ml is an all-in-one facial serum formulated to revitalise the skin.
The product is intended to increase cell turnover, resurface the skin, and reduce breakouts while keeping inflammation at bay.
The texture of a serum makes it much easier for the skin to absorb, unlike other heavier creams and lotions, while the combination of these essential oils and CBD leaves the skin more radiant.
Argan & Cannabis Hair Treatment 50ml is also infused with CBD and essential oils.
The unique properties of essential oils combined with CBD stimulate hair growth and prevents hair loss with visible effects.
Management highlighted that continued use will assist in activating and protecting follicle stem cells in order to produce stronger hair, with increased density and volume.
Creso Pharma has an established distribution footprint of over 2,100 points of sale across Switzerland that it will target to sell and distribute Cannabis Queen products.
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.
From a broader perspective, Creso Pharma is well funded to expand proprietary technologies into new verticals, with other value-adding initiatives and revenue-generating products in human and animal health under development.
With additional product launches expected shortly, there are share price catalysts on the horizon.