Zoetic (ZOE) announced in a trading update on Monday the launch of six new CBD products, expected to go on sale ahead of Christmas.
Nick Tulloch, Chief Executive of Zoetic, said: “The primary target was to ensure that the cosmetic and beauty range was available for sale ahead of the Christmas period and I am delighted that we are on track for that.”
Zoetic’s “Chill” chew pouches have rapidly become its best selling product by volume, and will shortly be available through certain Mr. Checkout distribution partners in the US.
Mr. Tolluch said: "In our US division, the popularity of our chew pouches is surpassing expectations.”
“This has meant that we may need to address manufacturing capacity earlier than we expected, but it is paramount that we are able to meet demand and the team in the US are already well advanced in examining options in this regard.”
Shares in Zoetic were trading 1.78% lower at 8.3p during Monday morning trading
Zoetic said it is in discussions with a further major distributor for its chew pouches and is optimistic about the outcome of the discussions with Mr. Checkout.
If both distributors proceed, Zoetic said demand may exceed its existing manufacturing capacity, and has therefore started to explore outsourcing some manufacturing or expanding in-house capacity.
Due to longer than anticipated feminised seed curing and development, Zoetic expects its first high quality feminised seeds to be ready at the beginning of 2020, having previously expected the seeds by the end of 2019, but that it was on target to make its first sales ahead of the 2020 growing season.
Zoetic’s harvest yielded less dry weight than expected, but told investors it plans to use the vast majority of its outdoor crop in its own product manufacturing. It said some short-term revenue from biomass sales will be forgone but that the longer-term impact on margins “should be very positive”.
Zoetic also said it was expanding and upgrading its marketing programme, via its affiliate marketing programme, an upgraded website, and European trade show attendance in 2020.
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