- MICHAEL LARKIN
New Age Beverages (NBEV) stock was up after the firm announced it is taking its CBD portfolio into Hong Kong. The move to the Chinese territory is the Colorado- and Utah-based company’s first major international expansion. Other marijuana stocks were mixed.
The firm said it will begin shipping its portfolio NHANCED brand CBD oils, creams, and lotions to Hong Kong from June 18. The launch will initially cover Hong Kong Island, Kowloon and the New Territories.
China this year will become the world’s biggest consumer market, with retail sales expected to top $5.6 trillion, about $100 billion more than in the U.S., research firm eMarketer estimated earlier this year. And while cannabis is illegal in China, its cousin Cannabidiol, or CBD, is derived from hemp to treat pain but doesn’t cause a high, and is legal.
However New Age Beverages’ China expansion is only the beginning. It plans to launch its NHANCED CBD portfolio in 58 countries in Q3 and Q4. The firm is also actively developing new products.
“The launch of CBD in Hong Kong and China is another step in our drive for worldwide leadership in the emerging CBD sector,” Shon Whitney, senior vice president of sales and marketing at New Age’s Morinda brand, said in a news release. “In addition to this launch, we have already finalized formulas and are moving to production of CBD-infused beverages and dietary supplements, which we are launching in initial markets this year and will continue to roll out globally as the regulatory landscape allows.”