Biotechnology company Creso Pharma (ASX: CPH) has signed a bilateral commercial agreement with South African skincare company Cannabis Queen to market and distribute its range of cannabidoil-based nutraceutical and tea products.
Under the terms of the initial one-year deal, Cannabis Queen will market CannaDOL topical gels to treat arthritis and sports-related muscle injuries, as well as Creso’s recently-launched CBD-based tea range sold under the established cannaQIX brand to over 1,000 points of sale within its wholesale and retail network.
Products will be sold to Africa’s consumer market on Cannabis Queen’s online store, and via direct-to-consumer sales, retail distributors, specialist wellness shops, beauty salons and pharmacies.
The agreement will also give Creso the rights to market Cannabis Queen’s anti-aging facial serum and argan oil and cannabis-based hair treatment products to more than 2,100 of its distributors across Switzerland.
These include major wholesalers such as pharmaceutical products and medical technology distributor Galexis AG, healthcare logistics provider Amedis-UE AG and pharmaceutical supply chain provider Voigt Group.
Creso has earmarked additional European territories for expansion in the near term.
Creso chief executive officer (Swiss international operations) Jorge Wernli said the new deal would provide an established footprint into the African market and de-risk the launch of future new products.
“Cannabis Queen has an established footprint and reputation which we will be able to leverage to drive growth and increase visibility in a strategic and emerging market,” he said.
“We also look forward to initiating marketing and distribution initiatives for Cannabis Queen’s own skin and hair products, further optimising that company’s high-quality value proposition to our end-customers.”
Cannabis Queen was established in 2019 following a historic decision by South Africa’s Department of Health to make cannabis derivative CBD available for local consumer use.
The company sells a range of topical products made from full-spectrum CBD oil as well as advanced formulas with enriched botanicals, all of which are manufactured using locally and ethically-sourced raw materials.
Creso’s new CBD-based tea products were unveiled this month and are based on technology which optimises the CBD content in compliance with regulations and allows for a better taste.
Three varieties have been produced targeting stress management, sleep management, and general well-being.
The technology used to make the teas will also be used in the manufacture of Creso’s cannaQIX lozenge flagship products.