Wednesday, April 24, 2024

Precision price-targeting at Cannaray CBD’s two new stockists, Debenhams and Morrisons

Cannaray CBD has added two household-name retailers to its list of stockists in the past week: Debenhams today and Morrisons. The retailers are selling two different price ranges of products. At Morrisons supermarket—both in-store and online—all Cannaray products are priced at £18, while at Debenhams—an online-only operation owned by Boohoo Group since January 2021—the price range is £36 to £50.

The CBD brand will be available in 126 of the 497 Morrisons supermarkets across the UK, and online from Morrisons.com. The £18 range includes Cannaray CBD Bright Days Oil Drops (10ml, 500mg), Night-time Oil Drops (10ml, 600mg) and orange-flavoured CBD Gummies (30 gummies, 300mg).

Debenhams is stocking these same products but at different strengths and volumes: Bright Days (30ml, 1,500mg £36), Night-time (30ml, 1,800mg, £36) and gummies (30 gummies, 900mg, £36). It is carrying additional items: CBD Bright Days capsules (£36), and three sets—Immunity Support (£48), Must-Haves (£50), and Wind-Down (£48).

Jacqueline Claughton, Morrisons’ healthcare buying manager, comments, “Being able to help our customers prioritise their health and wellbeing has been a huge focus for us this year. We have seen growing customer demand for CBD wellness supplements to be available in Morrisons stores and online, so we are delighted to be introducing Cannaray’s high quality and affordable CBD range to our shoppers.”

Cannaray’s managing director, Tim Clarke says, “We are delighted to be partnering with Morrisons to introduce Cannaray CBD to their shoppers. As CBD usage is rapidly growing across the UK, we are proud to be helping millions of Morrisons shoppers to take their first step into trying high quality CBD as part of their regular wellness routine. And we are delighted to be partnering with Debenhams…as they launch CBD supplements for the first time on their marketplace.”

Tim Clarke, Cannaray CBD’s managing director, hopes that the partnership with Morrisons will enable first-time customers to try CBD with its £18 range; Debenhams customers can choose from a wider range of Cannaray CBD products at a higher price-point

Morrisons also stocks a range of CBD drinks and juices from Medahuman, Bumblezest and Unrooted, and CBD coffee from Cannacoffee. At Debenhams, skincare products from London Botanical Laboratories, and oil drops from Sanctuary Spa are included in the CBD range available.

Cannaray CBD stockists include supermarkets Tesco and Waitrose, pharmacy chains Superdrug and Day Lewis, and Harrods. The company claims to have been the first to invest in major brand advertising in the UK, with outdoor billboards and a television campaign, fronted by brand ambassador Claudia Winkleman.

Last month, CBD brand Cellular Goods announced a proposed acquisition of Cannaray and Love CBD Health, stating that a letter of intent had been signed “pursuant to which Cellular Goods will acquire 100% of the issued share capital of the Cannaray Subsidiaries… Should the transaction complete, it would constitute a reverse take-over…under the listing rules.”

It continued, “Cellular Goods has conditionally agreed to acquire the Cannaray Subsidiaries for an initial consideration of £14.2 million, consisting of £1 million in cash, together with a number of new Cellular shares, which will make Cannaray a 54% shareholder in the enlarged group. The company has also agreed to make further performance-based share payments, conditional on the Cannaray Subsidiaries achieving various revenue milestones in the first full financial year of the combined entities. As a consequence, should the subsidiaries generate over £5 million in revenues within the first financial year, Cannaray will become a 61% shareholder. Should the subsidiaries generate over £7.5 million, Cannaray will become a 64% shareholder.”

Andrew Garden, the chair of Cannaray commented, “Following this transaction, Cannaray Limited’s strategy will centre on the development of prescription-based cannabis for medicinal use in Europe—on the back of our unique partnership with Walgreens Boots Alliance for cannabis supply and education in Germany. With the German government having announced steps to legalise recreational cannabis in the near term, we are also well poised to galvanise our capital and human resources to be at the forefront of this multi-billion Euro market as it emerges.

“It has always been the intention of Cannaray Limited to list the business on a favourable stock exchange. We are excited to list our CBD division on the LSE via this reverse takeover with Cellular Goods, whilst we continue to privately build our medical and recreational cannabis divisions in the UK and Germany. Our intention for the future will be to list on a qualified exchange favourable for recreational cannabis businesses.”

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