Hemp and medical cannabis company Cann Global (ASX: CGB) has reported an expansion in its sales and distribution activities in both Australia and overseas.
Earlier today, Cann updated the market with respect to its exclusive supply deal signed with Vietnamese company EPCO Foods and its parallel supply agreement to provide its T12 product range to Costco Australia, one of Australia’s most prominent retailers.
Costco will soon stock T12’s hemp protein powder, the first time the multinational chain has chosen to stock hemp powder as the brand continues to embrace hemp products to supplement its already vast array of perishable goods.
In September last year, Cann’s T12 food division signed an exclusive distributorship contract with EPCO Foods, and at the time, said the deal would “significantly increase its supply of product” to the Vietnamese company.
As part of the deal, T12 intends to export 20 tonnes of “AGN packaged” chia seed products to EPCO Foods as an on-going monthly order.
Cann has confirmed that the supplied products will consist of 250g, 500g and 1kg Australian-grown chia seed satchels and bottles. T12 has already supplied 26t of chia seeds as its first order, processed and shipped during September and October.
In a statement to the market, Cann said that its newly signed contract would now be amended to allow a 50% increase in supply volume. Moreover, EPCO is considering including other T12 products such as its nutraceutical capsules containing chia, fish oil and flax.
“T12’s work ethos of setting high standards in both production and manufacturing, with organic certification and ‘best practice’ Australian farming techniques will continue to ensure that Cann’s partnerships with global food retailers such as Costco and EPCO Foods Vietnam will only grow, making T12’s food range the product of choice for the discerning health-food conscious Australian and Global consumer,” said Pnina Feldman, chairperson of Cann.
In Australia, T12’s hemp products are also seeing spurred demand with an additional distribution request received from Costco, according to Cann.
Costco has asked T12 to supply its entire Australian store network with its organic hemp protein powder and now has three stock-keeping units with Costco for its hemp seed food products.
Cann said that its VitaHemp premium hemp seed oil capsules “continue to be well-received” with T12 receiving a further purchase order to supply its capsules through Costco. The 2 new stock-keeping units will be for the Blanck & Co organic hemp protein natural and organic hemp protein vanilla flavours.
Additionally, T12 has been invited to work with Costco on a promotional campaign that includes Costco Member Magazine advertising and in-store promotions, beginning with Sydney.
This morning’s news helped Cann shares to gain almost 19% up to $0.019.