CBD brand OTO has signed an agreement whereby its products will be distributed in Asia by a division of online CBD and wellness marketplace, Mellow.
Mellow Asia was established as a joint venture, announced in September 2021, between Mellow UK and eCargo Holdings Ltd, and operates out of Hong Kong. It was created to bring to the Asian market brands which Mellow was selling into the UK and EU markets via its e-commerce platform. ASX-listed eCargo operates business-to-business distribution into China, Vietnam, Cambodia, Thailand, Indonesia, Malaysia, Singapore, Australia and New Zealand, and its business-to-consumer channels cover China and South East Asia. As well as selling via e-commerce, Mellow Asia retails through shops.
Last month, CBD of Denver (CBDD), a cultivator and distributor of cannabis flower and CBD, and a producer of cbd oil, announced an agreement to acquire 100% of Mellow. The CEO of CBDD, Paul Gurney, explained the rationale of the purchase: “This acquisition will combine technology and retail e-commerce distribution alongside manufacturing and supply chain infrastructure to create a turnkey solution for the CBD industry across Europe. There is no other company in the industry now offering what we do in Europe.”
And now luxury CBD brand OTO has joined the nine other brands already sold via Mellow Asia, which include Love Hemp, Dragonfly CBD and Grass & Co.
Mr Gurney comments, “”We are extremely excited to welcome the OTO brand to the Mellow portfolio of brands in Hong Kong. This agreement will combine retail and technology/e-commerce distribution to enable Mellow to continue the great work that the OTO team have achieved in other markets, and in doing so, will position OTO as the leading luxury CBD and wellness brand in the Asian markets.
“There is no other company present in the industry in Hong Kong with an offering close to that of OTO. We are very pleased to be able to make this announcement, and we have much more in store ahead.”
Tom Lorimer, a co-founder and global new business director of OTO, adds, “We have very strong plans for the development of our brand in Asia and we are pleased to be able to partner with Mellow to deliver on these plans. Hong Kong is often used as a springboard into the rest of Asia, and is also a very strong luxury consumer market.
“This agreement cements our commitment to the brand and its growth potential in what is a nascent but very exciting consumer wellness environment.”