Charlotte's Web stock is on the rise. Shares are trading up over 10%, and it's not exactly surprising as to why; the US's largest grocery retailer, Kroger (NYSE:KR), has begun selling the company's topical cannabidiol (CBD) products as of yesterday, and shares are spiking on the news.
Charlotte's Web Stock After Kroger
Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF) is a market leader in hemp-derived CBD. Yesterday, the company announced the news that Kroger has begun selling its product across multiple states. The near-term plan is to roll out the products to a total of 1,350 stores in 22 states.
The deal represents Charlotte's Web's largest distribution agreement through a single retailer.
Kroger is now the fifth major retailer to carry Charlotte's Web hemp-derived CBD products. Other major names include Target (NYSE:TGT) and Walmart (NYSE:WMT).
All-in-all (including specialty retailers), the company now has a distribution footprint that exceeds 8,000 locations in the US. Along with this, the company is actively selling online.
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On the news, CEO Deanie Elsner said in a press release:
"Since its founding, Charlotte's Web has been on a mission to make CBD products available for as many people as possible [...] This distribution reach through Kroger's market-leading network of grocery stores is an enormous contributor to our mission."
CBD in the US
The boost to Charlotte's Web stock comes at a time when cannabis shares are facing a market-wide drop. Shares hit a 6-month low of $14.84 USD in mid-June. After, they paired those losses to hit a high of $23.64 USD, but they dropped once again soon after.
Now, Charlotte's Web Holdings is trading at roughly $16.69 USD per share. But there is massive potential for further growth in the short-term. Investors love to hear about an increase in distribution footprint, and it's clear to see why; after all, CBD sales are projected to hit $24 billion in the US by 2023, according to market research company Brightfield Group.
What are your thoughts on Kroger stocking Charlotte's CBD oil? Do you think Charlotte's Web stock will pack on more gains?
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