(TSX: CWEB) (OTCQX: CWBHF) Charlotte’s Web Holdings, Inc. (“Charlotte’s Web” or the “Company”), the market leader in cannabidiol (“CBD”) hemp extract wellness products, and Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY) (TSX: TLRY), a leading Canadian cannabis consumer packaged goods company, have entered into a strategic alliance which includes licensing, manufacturing, quality, marketing and distribution of Charlotte’s WebTM CBD hemp extract products in Canada.
Charlotte’s Web is the World’s Most Trusted Hemp Extract™ and continues to lead the way for consumer access. For the first time, Canadians will have the ease of nationwide availability of Charlotte’s WebTM full spectrum CBD products through Tilray’s distribution network. Previously, Charlotte’s WebTM hemp extract had only been available to Canadian families that qualified for a special access medical exemption through Health Canada for specific need-states.
“Charlotte’s Web is thrilled to be partnering with Tilray, a respected global category captain. This underscores our strategic expansion into international markets with leading domestic partners by leveraging well-established infrastructure, co-production, and route-to-market capabilities,” said Jacques Tortoroli, Chief Executive Officer of Charlotte’s Web. “Our collective goal is to bring full spectrum CBD-lifestyle wellness options to the Canadian market that will answer consumers’ demand for safe, high quality, trusted CBD products.”
The endeavor will address specific need states for Canadians by replicating the success of Charlotte’s Web’s core offerings in the U.S. with its line of full spectrum hemp extract products, including, naturally flavored oil tinctures, topical creams, and functional gummies for daily wellness and night-time use. Hemp-derived CBD falls under the same regulatory framework in Canada as cannabis; and therefore, Charlotte’s Web will be available through traditional Canadian cannabis sales channels. Establishing Charlotte’s Web’s supply chain and distribution in Canada also prepares for the contemplated introduction of new natural health products regulations and potential ability to sell CBD products through traditional pharmacies in Canada.
“This is an exciting time for the Canadian CBD market as more Canadians seek natural wellness options. Partnering with Charlotte’s Web, the market leading CBD brand, opens new opportunities for Tilray Brands in Canada as we evolve our distribution channels from the dispensary model to natural wellness retail channels and eventually mass retail opportunities. We look forward to launching Charlotte’s Web’s trusted, certified, and tested products across Canada in 2023.” said Blair MacNeil, President, Canada at Tilray.
First availability is expected in early 2023 for hemp extract oil tinctures, followed by gummies and topicals.
“This is a monumental milestone for our Canadian families that have relied on Charlotte’s WebTM products for years through Health Canada exemption access and marks a new era of wide availability to Charlotte’s WebTM products,” said Jared Stanley, Co-Founder and COO of Charlotte’s Web. “It was critical that our products were produced only using our proprietary hemp cultivars to ensure quality, efficacy, and consistency. We achieved this through a process that began in 2019 to successfully list our varieties on the Health Canada LOAC (List of Approved Cultivars) in 2021 and working with best-in-class cultivation partners. We are grateful for the meaningful collaboration with Health Canada and Tilray to make Charlotte’s WebTM products available for all Canadians.”
Under the arrangement, Tilray will acquire and extract Charlotte’s WebTM proprietary hemp biomass, harvested from Canadian-grown hemp cultivars, and manufacture into final product at their state-of-the-art production facilities in Canada. Quality and manufacturing by Tilray will follow the same proprietary methods and specifications Charlotte’s Web employs in the USA. Tilray will manage distribution through Health Canada’s regulated channels across Canada.