Full Spectrum CBD Products Brand with 800 Pharmacy Distribution and 39 Repeat Orders from European Base

This European-based company is a premium quality, full spectrum CBD products brand. They control the entire supply chain and have a consumer-centric approach to product innovation. Their products have achieved an impressive 39% repeat order rate across Europe.

OPERATIONS

The company operates in the global medical CBD market, which is experiencing significant growth due to increasing consumer awareness and the legalization of medical marijuana. Their products are used to treat various medical conditions and benefit from ongoing clinical trials.

The company sources products in Poland and fulfills orders from their 2000 sq ft warehouse. They use a pick, pack, and ship model and usually have 4-6 order placements per year.

MARKETING AND KEY METRICS

The company utilizes digital marketing efforts such as email and SMS campaigns, influencer relationships, and special events to promote their products. They have achieved strong branding and market position with attractive margins.

The company has the opportunity to expand its sales channels by entering new European markets and entering the US market. They can leverage their existing customer base and reputation to launch new products and develop a subscription model. B2B sales and affiliate/influencer marketing are also potential growth strategies.

Key metrics for this business include a 39% repeat order rate, distribution coverage of 98% of pharmacy wholesale in Poland, and over 2,800 unique pharmacy distribution points. The company maintains a 100% stock inventory model and typically has 3 months worth of inventory.

The company’s typical customer base is evenly split between genders aged 21-55. Customers use the products for stress relief, pain management, anxiety reduction, improved sleep, and overall wellness. The products have broad market appeal and are considered mass-market.

BUSINESS MODEL & RESOURCES NEEDED

The CEO handles day-to-day operations, including production, shipping, and inventory management. There are 5 additional staff members, including a warehouse manager and a CMO.

THE INDUSTRY

The CBD industry is growing rapidly, driven by increased consumer awareness and the legalization of medical marijuana. CBD products are used to treat various medical conditions and have a broad market appeal. Examples of other companies in this industry include Charlotte’s Web, Medterra, and Bluebird Botanicals.

OPPORTUNITIES TO SCALE

There are several scale opportunities for this company, including expanding to other European markets, launching products in the US market, introducing additional animal products, building a subscription model, developing B2B sales relationships, and utilizing affiliate/influencer marketing. The company can also consider offering white-label products and expanding into related verticals.

Asking Price: $2,000,000
Gross Income: $1,934,760
Cash Flow: $676,226
Year Established: 2019
Employees: 6

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Amanda Stanley

Amanda has been a professional writer since 2010. She writes during the day and reads by night. She has accumulated knowledge by scouring the internet and reading informative books. Concurrently, she developed a passion for educating people through her blogs and web tutorials. She is an earnest believer that knowledge is power.

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