Chicago-based Cresco Labs (CSE:CL) (OTC:CRLBF), a cannabis grower and retailer in seven US states, just announced the formation of a new subsidiary, Well Beings. The new company will expand Cresco’s products to all 50 states and reach customers outside of the dispensary channel.
Cresco Labs stock has exploded upwards 105% on 6 months, and risen 38% in one month.
Well Beings is led by Scott Wilson, former Nike Global Creative Director. It will offer hemp-based CBD wellness products for national distribution, including ingestibles, topicals, and patches, balms, lotions and tinctures. It will have its own product line, and produce CBD versions of Cresco’s branded products, including Cresco, Remedi and Mindy’s Edibles.
“Entering the CBD industry is an obvious next step for Cresco Labs so (we) can continue to build…our brands across all fifty states…,” said Cresco’s CEO and co-founder Charlie Bachtell.
The total US cannabis market (recreational and medical) is projected to expand from $10 billion to more than $75 billion by 2030. The hemp CBD market could reach $3 billion by 2020, and may over time eclipse the cannabis market, according to Brightfield Group. The US recently legalized CBD when it passed the 2018 Farm Bill in October 2018.
Well Beings’ leader, Scott Wilson, explained, “The purpose is to demystify…CBD products, guiding consumers to understand the benefits of hemp and how to incorporate CBD-based wellness products into their daily lives”. Wilson also runs MINIMAL, a global design firm.
Cresco Labs focuses on regulated markets with high demand and high barriers to entry. It has brands tailored to four consumer segments: everyday cannabis, medicinally focused, connoisseur grade, and cannabis edibles inspired by pastry chef Mindy Segal.
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Source: Cresco Press release