A footwear retail giant just announced a surprise deal with CBD company. The agreement will feature an initial rollout of 54,960 units of product to 96 stores across 44 states.
If you’re like me, shoe stores aren’t the first thing that comes to mind when you think of cannabis.
The agreement follows a successful test phase conducted last fall, in which Green Growth Brands’ Seventh Sense line of products was placed in 10 DSW stores. The Seventh Sense brand offers low-priced, high-quality CBD-infused products, including muscle balms, body lotions, body washes and foot creams.
During the first 10 weeks of that trial, 74% of the products on shelves sold, far exceeding anyone’s expectations.
Make no mistake: this deal is quite significant. With a presence in 44 states, DSW’s partnership with Green Growth Brands will represent the first truly national CBD rollout of its kind. That initial rollout will involve the introduction of 54,960 units of Green Growth product across 96 U.S.-based DSW stores.
If the first few months of this partnership prove as successful as the trial, we expect those numbers to skyrocket.
In a press statement, Green Growth CEO Peter Horvath made no secret of his ultimate goal of CBD market domination. He said the deal “is the first step in our strategy to expand sales of personal care CBD products through external partnerships, in mall kiosks, and through a growing number of stores and online.”
Horvath, who was an executive for Victoria’s Secret and American Eagle Outfitters, knows a thing or two about brand domination, and this move puts him well on the way to his goal for CBD.
But it was the musings of CEO Roger Rawlins that tells us much more about what this agreement means…
Rawlins made it clear that DSW’s decision to partner with Green Growth Brands, which stole headlines recently in its hostile takeover bid for Aphria Inc. (NYSE: APHA), is based on a seismic change in consumer attitudes.
“We have seen recent shifts in consumer behavior accelerate changes in the retail industry,” he said. “North America’s widespread adoption of the use of CBD products is one of the best examples of these shifts, and we could not be more excited about our partnership with Green Growth Brands and the introduction of their products to our customers.”
Rawlins is giving his assurance that CBD is going mainstream – and telling the world it deserves a place in mainstream retailers like DSW.
Lingering federal prohibition is the last major hindrance to public acceptance and business confidence. With the passage of the Farm Bill and its industrial hemp-legalizing provision late last month, the industry finally has the clarity it so desperately needed regarding CBD products. Now that consumers can purchase those products from reputable, nationwide retailers – with absolutely no concern about the legality of the transaction – the industry will never look back.
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Companies specializing in CBD (like Green Growth Brands) and retailers smart enough to get out ahead of the curve (like DSW) were prepared for this eventuality. The rest of the industry will have to play catchup. And they’ll try.
The continuing mainstreaming of cannabis and, especially, CBD at such a rapid pace is only going to draw a wave of additional investment into the market.
After all, there are only a few well-run, publicly traded CBD companies out there – for now.
The Next Big Thing in CBD
Fortunately for retailers – and for in-the-know-investors – the opportunity for success is nearly limitless.
If you had asked anyone even a year ago how cannabis would go mainstream and national, I doubt you would have heard the words “foot cream.” That’s the beauty of the CBD sector. New products that most people would never have even thought of are constantly cropping up, and they are going to make the industry bigger than anyone ever imagined.
Topicals, like those provided by Green Growth Brands, make up 19% of hemp-derived CBD products. That’s a sizeable figure, but it shows there’s plenty room left for brand domination.
Management of mainstream consumer packaged goods and retailers must take note. The partnership between Green Growth Brands and DSW is exactly the kind of opportunity they should be considering.
There are thousands of companies making CBD products – and most of them are yet not publicly traded. Following a CBD company that enters a successful retailer partnership or draws big enough retail-level investment to IPO could make you a fortune with the right branding strategy.
Thanks for being an important part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
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