Following a recently-announced partnership with C.A. Fortune to assist other companies entering the CBD retail industry, cannabis company KushCo Holdings (OTCQX: KSHB) is moving further into that side of operations through the launch of a Retail Services division.
The move comes as CBD products of all varieties – from hand creams to oral tinctures – hit shelves in major grocery chains, pharmacies, gas stations, standalone shops, and a rapidly exploding number of mall kiosks and storefronts.
KushCo’s new Retail Services unit will be led by Ryan Savage as VP of Retail Services while Julie Andler takes up the role of Director.
Savage comes into the role after more than a decade in the consumer packaged goods industry working with names such as Trader Joe’s and Kroger, while Andler brings 10 years of retail analytics and customer relationship development experience.
Under that new leadership team, the division is tasked with offering retail solutions to various CBD brands by assisting in navigating regulation compliance, building up distribution networks, and partnering with sales agencies.
Discussing the creation of the Retail Services division this morning, KushCo’s Chief Revenue Officer Jason Vegotsky commented:
Hemp-derived CBD products have consistently made headlines and begun overtaking THC cannabis products in popularity since industrial hemp farming was legalized in the U.S. late last year.
While existing U.S. companies such as KushCo have moved rapidly to enter the booming sector, established cannabis organizations in Canada are also now positioning themselves to snag a portion of the market.
Most recently, Cronos Group Inc. (NASDAQ: CRON; TSX: CRON) bought out Redwood Holding Group and snapped up the popular Lord Jones brand of CBD products.
The rapid growth of CBD brands may be about to hit a serious snag in the coming months, as the Food and Drug Administration is now cracking down on unsubstantiated health claims from some CBD companies and is gearing up to release new regulations.