Hemp Health Products Maker Vertical Wellness Buys Organic Candy Factory
Hemp-derived health products maker Vertical Wellness Inc said it was buying California-based sweet maker The Organic Candy Factory, creating a cannabis-infused edibles maker worth around $110 million.
Pot edibles, especially gummy bears, brownies and drinks, have been the biggest beneficiaries of a demand windfall for cannabis-related companies this year, as consumers locked down under coronavirus restrictions spent more on their products.
The Organic Candy Factory does not currently make any pot-infused candies, but it will now expand into cannabidiol (CBD) variants and become a key revenue driver for the combined company, a Vertical Wellness spokesman told Reuters on Wednesday.
A non-psychoactive compound derived mainly from the hemp plant, CBD is being researched for various medical applications and has found increased use as a relaxative.
A 'Perfect Segue'
Vertical Wellness Chief Executive Smoke Wallin said the deal is a 'perfect segue' for his company to expand into gummies, which he said are among the most in-demand products in the CBD market.
His company is targeting over $22 million in sales in its fiscal 2021 and hopes to more than triple that to $78 million in fiscal 2022, the spokesman said.