Cronos Australia set to develop CBD-based products in partnership with Sukin co-founders
Cronos Australia pens deal to develop CBD-based skincare products via joint-venture with A&S Branding.
Medicinal cannabis company Cronos Australia (ASX: CAU) backed by multibillion-dollar North American giant Cronos Group, has unveiled plans to launch a range of cannabinoid (CBD)-based products with the help of A&S Branding.
The collaboration was described as a “great deal” by A&S Branding director Simon O’Connor with the two companies agreeing to join forces in developing CBD-based products for the mass consumer market.
According to both parties, the joint venture will seek to leverage Cronos Australia’s expertise in medicinal cannabis and CBD while taking advantage of A&S Branding’s expertise in branding, product development and marketing.
A&S Branding was established by Alison Goodger and Simon O’Connor, the co-founders of Australian brand Sukin Organic Skincare – a synthetics-averse approach that always promotes natural ingredients and sustainable working practises when manufacturing skincare products.
Cronos Australia and A&S have agreed to work together on an exclusive basis for an initial period of two years and have agreed to collaborate on development, branding and marketing of CBD products for the Australian and New Zealand markets.
The overarching goal is to develop effective and popular cannabis-based products that leverage the use of CBD, thereby expediting the pathway to market entry and reducing regulatory oversight given that CBD is considered harmless and does not induce psychoactive effects typically ascribed to THC.
From a branding perspective, utilising natural CBD as a unique selling point could be a superb way of attracting health-conscious consumers that are becoming ever more motivated by natural ingredients rather than artificial pharmaceuticals.
Asia Pacific expansion
As Cronos Australia’s largest shareholder, Cronos Group is already listed on the TSX in Canada and the NASDAQ in the US.
In recent years, the company has established international production and distribution channels across five continents and has been vocal about its intention of building “disruptive intellectual property” by advancing cannabis research, technology and product development including the curation of a proprietary “iconic brand portfolio”.
In Australia, Cronos Group is operating via a controlling stake in Cronos Australia with its admitted mission being to become a leading health and wellness company in the Asia Pacific region through the distribution of premium THC and CBD cannabis products.
Cronos Group’s portfolio currently includes Peace Naturals, a global health and wellness platform, two adult-use brands called Cove and Spinach, as well as two hemp-derived CBD brands, Lord Jones and Peace+.
Once developed and approved by regulators, Cronos intends to make cannabis products developed through the joint venture available to patients in Australia under the SAS-B Scheme or via prescription through authorised prescribers.
“We are excited to be working with the Cronos Australia team to bring CBD products to market. There is significant potential for the inclusion of CBD into a range of products,” said A&S Branding director Alison Goodger.
“The collaboration with Alison Goodger and Simon O’Connor of A&S Branding is an exciting milestone for Cronos Australia and will enable us to harness the collective expertise of both parties for the development of branded CBD products,” said Rodney Cocks, chief executive officer of Cronos Australia.
This morning’s news boosted Cronos Australia shares by almost 5% up to $0.225.