Las Vegas's CV Sciences (OTCQB:CVSI) has announced an important expansion of its "industry-dominating" PlusCBD Oil brand. As expected, the news has sent CVSI stock through the roof. Shares are up approximately 10% at present with each share selling for $4.60 on the OTC.
What's going on? Let's check this out.
CVSI Stock Soaring on Kroger Partnership
The supplier and manufacturer of hemp CBD products is partnering with major US retailer Kroger (NYSE:KR). The latter will stock CV Sciences new PlusCBD Oil Roll-Ons in its 945 Kroger stores across 17 US states.
The Roll-Ons will be distributed under many of Kroger's retail banners including Kroger, Dillons, Fry’s, and Fred Meyer, among others.
CVSI stock is reacting well to the news, as the partnership increases the revenue streams for the company's product.
PlusCBD Roll-On
The company's PlusCBD Oil line is comprised of its flagship products. The new Roll-On version contains the same high-intensity concentrated CBD but in a handier "to-go" packaging that makes application easier. There are two formulations available: 200mg CBD and Extra Strength 500mg.
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The Roll-On is made up of concentrated CBD from hemp plant biomass along with camphor and menthol. The product will join CV Sciences' best selling PlusCBD Oil Extra Strength and Original Balms, which are already on the shelves at participating Kroger locations.
With today's addition of Kroger, CV Sciences PlusCBD Oil branded products are now available for purchase in 4,591 retail stores across the US.
On the partnership, Joseph Dowling, Chief Executive Officer of CV Sciences, said the following:
“We are delighted to partner with Kroger and launch our new Roll-On topical as we continue our rapid expansion into the FDM channel [...] Kroger, CVS Pharmacy, and other leading national retailers are keenly aware of the increased consumer demand for hemp-based CBD products and they are partnering with CV Sciences because of our unwavering commitment to safety and quality."
The Takeaway
CVSI stock is surging on the news, and it's no surprise. The CBD industry has an estimated value on its head of $1.3 billion in sales of CBD topicals in 2019 alone—this estimation comes from market analyzer Brightfield Group. Further, the market has an expected compound annual growth rate of 169% from 2018–2022.
Knowing this, CV Sciences is already at the fore of this market with its leading line of pure CBD oil concentrates and balms. Securing more distribution deals across the US helps to secure its brand status and to grow those important consumer relationships at this early stage in this nascent industry.
What are your thoughts? Are you a CVSI stock investor?
Featured Image: Canva
