CanaFarma entered into this exclusive agreement with Nutracosmetic of Bernau, Germany, to provide fulfillment and production services. CanaFarma will leverage Nutracosmetic’s operations to facilitate both Businesses to Business and Business to Consumer channels across the European Union, Asia, and South America. Nutracosmetic and its subsidiaries are a high-end professional cosmetics manufacturer and operate a sophisticated global distribution system from their 15,000 sq ft of facilities. CanaFarma will be the sole hemp-related client for Nutracosmetic, and Nutracosmetic represents the ideal partner for CanaFarma to build out its global distribution network.
As CanaFarma focuses on the further extension, development, and marketing of its YOOFORIC™ brand line of chewing gums, European consumers will become a point of major focus.
In January 2019, the European Union officially changed the status of CBD, or cannabinoid, to a Novel Food requiring pre-market authorization. Novel Food is defined by the European Commission as “food that had not been consumed to a significant degree by humans in the EU before 15 May 1997, when the first Regulation on novel food came into force. ‘Novel Food’ can be newly developed, innovative food, food produced using new technologies and production processes, as well as food which is or has been traditionally eaten outside of the EU.” Looking beyond this new definition, the growth rate of CBD continues to advance in popularity and sales in the European market.
According to an article published in Health Europa, “over the next five years, the global CBD market is expected to accelerate to $23.6bn, and Europe’s CBD market is set to grow by 400%.” The growth of the CBD market in Europe is due to the growing sales of CBD infused products sold in industries such as pharmaceuticals, personal care, cosmetics, nutraceuticals, and medical entities paralleling CanaFarma’s success in the United States.
CanaFarma’s German partner company, Nutracosmetic GmbH will be responsible for all YOOFORIC™ product deliveries to Northern Europe and Asia, and its two subsidiaries will handle the following additional geographical regions:
- Brandics GmbH, based in Lohmar, Germany, will be responsible for Germany, Austria, Switzerland as well as overseeing CanaFarma’s distribution relationship with Amazon.
- Nutracosmetic Srl, based in Verona, Italy, will handle deliveries to Southern Europe and South America.
David Lonsdale, CEO of CanaFarma said, “This is another substantial step forward for CanaFarma, as we continue to execute on our overall strategic plan to deliver products to our customers on a global basis. We are very pleased to be working with Nutracosmetic.”