Love Hemp reveals jump in revenues as it hails ‘burgeoning CBD wellness sector’
The business sells a range of over 40 products including CBD oils, capsules and edibles online and in retailers such as Holland & Barrett, Boots, Ocado and Sainsbury’s.
Revenues in the year ended 30 June 2021 rose to £4.3 million, compared with £2.7 million in the prior 12 months, and gross profits totalled £1.3 million. Revenue from major retailers including Boots and Holland & Barrett increased 65% in November 2021 compared to the average monthly revenue from retailers in the previous 10 months.
Love Hemp is listed on the UK’s Aquis Exchange but said its plans to move to the main market of the London Stock Exchange are “progressing well”. It has acquired new premises with capacity to manufacture up to 500,000 units of CBD products monthly.
Love Hemp sells broad-spectrum (which offers all the entourage benefits associated with full-spectrum CBD, without any chances of THC being ingested) CBD jelly domes and CBD dark chocolate balls.
‘Edibles offer a convenient way for consumers to ingest CBD’
The company told FoodNavigator the edibles format allows its customers to satisfy their sweet tooth whilst getting a daily dose of CBD.
“CBD edibles provide all the wellness-promoting benefits of CBD in a tasty, on-the-go format,” it said. “If you are new to CBD, edibles could be a great place to start, offering an easy way to track and tailor your CBD consumption to suit your needs and tolerance level."
It added CBD-infused edibles typically take longer to kick in as they take time to metabolise, as opposed to CBD oil which will enter your system straight away if you take it sublingually, or under the tongue.
During the year the company signed a licensing agreement with the Ultimate Fighting Championship. It also signed a three-year endorsement deal with Anthony Joshua OBE, two-time Heavyweight Champion of the World and Olympic gold medallist who also became a shareholder of the company. Joshua starred in the company’s first national media campaign across TV, print and outdoor advertising in November 2021 has already resulted in a significant number of new customers and increased revenue from returning customers buying directly from the business as well as increased orders from major retailers. Early access to Black Friday promotions for existing customers resulted in 65% of November orders from returning customers
CBD is oil or powder derived from the cannabis plant that can be added as an ingredient in food and beverages. It doesn’t get you high. Studies continue to show it may be an effective treatment for epilepsy and may prove to be an option for, among other things, managing anxiety, insomnia, inflammation, arthritis, and even HIV symptoms. But these studies are as yet inconclusive. With the exception of Epidiolex, the first and only prescription CBD medicine approved by the FDA in the US which is used to treat seizures, no medical claims can yet be made on any products.
A ‘burgeoning CBD wellness sector’
Love Hemp CEO Tony Calamita said the company will launch multiple new products in the new year to capitalise on a “burgeoning CBD wellness sector” as consumers are attracted to CBD’s perceived health benefits.
He said: “Key to the momentum of brand building is understanding our consumers. Our revised marketing strategy will see us pivot towards a focus on the consumer use cases of sleep, stress, anxiety, recovery, and pain. Investment in data driven marketing will enable us to better understand who our consumers are and their purchasing behaviour, which will in turn improve targeting and grow our market share amongst key audiences. Enabled by our data driven decisions, the New Year will also see the launch of multiple new products. These new products target new audiences and new distribution channels. These new products have all been developed by our in-house New Product Development team in our new premises in Manchester.”
He added: “A focus on consumer use cases, investment in brand building through partnerships, data driven digital marketing and new product development help deliver a robust, distinctive and informed offering. We believe this is unique in the CBD wellness space and that these developments, in addition to the strong revenue, growing customer base and established sales channels, provide Love Hemp with a platform from which to become a globally recognised and trusted brand.”