Medicinal cannabis, CBD and hemp healthcare products company, Bod Australia Limited (ASX: BDA) is pleased to report that it has received a A$200,000 binding purchase order from exclusive global partner, Health & Happiness Group Limited for four Swisse Wellness branded hemp seed oil products.
The products will be sold in France, as well as through existing channels in the Netherlands and the United Kingdom, considerably broadening Bod’s product offering in Europe.
They will be provided in soft gel cap form and designed to target specific need states including sleep, energy levels, stress and general wellness.
The development marks Bod’s entry into the French market. Bod and H&H will launch the products directly to consumers in France through Swisse’s established ecommerce channels. Distribution to retail outlets is earmarked for future development. H&H will initiate marketing campaigns to progress product uptake and awareness in the country, as well as manage distribution.
The new hemp seed oil products will also be sold through online channels in the United Kingdom, the Netherlands and Italy.
Bod will receive a royalty on net product sales, as well as a cost plus margin for the supply of its extracts and formulas, unlocking more revenue streams.
CEO Jo Patterson said the binding purchase order follows a decision from the Court of Justice of the European Union (CJEU) on November 19, 2020 which ruled that member states cannot prohibit the marketing of lawfully produced CBD. The CJEU ruled that CBD is not considered a narcotic and as a result, can be freely sold in the European Unionii.
The CJEU noted that, according to the current state of scientific knowledge, the CBD referenced in the hearing did not appear to have any psychotropic effect or any other harmful effect on human health and therefore cannot be classified as a narcotic.
This landmark decision highlights a major shift for the sale of CBD and hemp in Europe and leaves Bod well positioned to grow. Bod has an established footprint in the Netherlands and the United Kingdom, with sales into Italy and France expected in Q1 2021. Bod and H&H will continue to progress opportunities that will broaden sales channels and its European footprint.
Since securing our exclusive global agreement with H&H, we have been focused on the European market. We have now achieved five major market entries, across Italy, the Netherlands, UK, France and Australia and we remain confident that Bod will continue to benefit from the sale of its products under a globally recognised brand,” Mr Patterson said.
“This order further highlights the uptake we are achieving across our product range and the sale of these hemp seed oil products in the Netherlands, France and the United Kingdom will underpin further revenue growth.”