Though the recent economic shutdown brought on by the COVID-19 pandemic has many industries questioning their futures, one winner is emerging during it all and that might be more because of the increasing clarity around regulations and less to do with the rest of the market. With the recent legalization of THC and THC-derived products in Switzerland, the new market presents a unique opportunity for established player CBDD.
CBD of Denver has made a huge move towards dominating the emerging global market for CBD products with its purchase of Switzerland-based CBDWelt24 GmbH, a major growing operation. CBD of Denver could help leverage this acquisition towards not only amping up production but also towards developing new and novel products for everything like CBD for pain to others.
Swiss Industries CEO Marcel Gamma said of the purchase by CBD of Denver, “This is only the beginning…We have the business expertise and personnel to make this a success story, and we will not rest until we have reached our goals of opening multiple retail outlets, grow facilities, building an extraction lab, and expanding our wholesale operations with CBDD.”
Hemp Industry Daily estimates CBDWelt24’s annual revenue of “$800,000 to $1,200,000” according to a filing the website found.
As we outlined earlier, the market in Switzerland is just beginning though it seems like this acquisition has long been in the plans as far as CBDD is concerned as a company. Declaring themselves dedicated to making sense of the “confusing” CBD industry, the firm not only specializes in consumer products but also research. A huge drive for them in the future is to find new products using THC and THC-derived materials, the company’s website notes.
According to the press release from CBD of Denver, the company is, “…is focusing its efforts on reducing retail pricing and developing new and unique products. CBDD is one of a handful of companies to offer a CBD product that is full-spectrum without depending on THC to activate beneficial effects. Black Pearl CBD has 0% THC, and is not an Isolate where the THC is stripped from the product rendering it useless. We use a proprietary technique adding terpenes as the activation ingredient, resulting in a product that is the finest in the industry.”
While the general economic environment might make many people cautious about new investments or acquisitions, this expansion of productive capacity for CBDD seems to make sense within the larger scheme of their company plans. Unlike other industries impacted by the pandemic, CBD products can be enjoyed in the privacy of one’s home and without others thus negating many of the downsides of some other recreational industries like hospitality establishments.
Aside from that aspect, the use of CBD for medicinal and therapeutic purposes also presents the growing and still-young market with a myriad of opportunities to explore. Facilitated by the greater regulatory and legal clarity that has emerged in Switzerland of late, it is expected that other such acquisitions and moves between companies in this industry will occur as the business landscape becomes clearer.