Zoetic hails partnership with one of the largest US tobacco-focused chains
The international CBD company told investors back in November 2020 that it had secured a new US distribution agreement for the Chill brand. The initial product roll-out, which started ahead of schedule, was said to have been met with ‘an overwhelmingly positive response.’
The initial roll-out saw distribution begin across 125 new US stores in the first week alone. At the time, Zoetic said that both the speed and extent of distribution had exceeded its expectations, standing it ‘in good stead to beat launch targets should this pace continue.’
The Chill brand will now be stocked by one of the largest tobacco-focused retail chains in the US. While the business’ name remains undisclosed, Zoetic said it has previously overseen the growth of one of the US’s highest-selling tobacco-free nicotine pouch brands.
Shares in Zoetic have seen an over three-fold increase in value since the beginning of October 2020. The stock was trading 9.33% higher today at 82p following the news.
Zoetic now expects to grow market share due to the retail chain's significant number of high footfall stores that will sell Chill products from high-visibility point of sale display stands.
Commenting on this morning’s news, Antonio Russo, Co-CEO of Zoetic, said, "This Agreement marks a pivotal moment in the progress of our US rollout and demonstrates the high calibre of retail placements that our distribution partners continue to make.”
He said that as a result of the partnership, Zoetic’s Chill products will now benefit from “the established reputation of one of the largest tobacco-focused retail chains in the US.”
He said this confidence is reflected through the fact that this chain was “instrumental in the success of other tobacco alternative products in stores''. Zoetic said it remains hopeful that it will receive similarly positive results and establish Chill as a preferred CBD brand in the US.
The global cannabidiol market size which was valued at USA $2.8 billion in 2020 is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028.
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