Connect with us

Cannabis

Cannabis investors turn to CBD as Love Hemp’s online sales figures soar

As COVID-19 threatens to plunge us into an economic winter certain sectors have proven themselves able to weather the storm. Online sales have continued to grow despite the downturn and World High Life PLC wholly owned subsidiary Love Hemp have proven resistant to the troubles faced by comparative industries with rapidly growing sales.

Published

on

This picture show some medical cannabis.

The cannabis industry had already been facing significant challenges even before COVID-19 threatened to derail decades of growth. The likes of Aurora Cannabis (NYSE:ACB), Tilray Inc. (NASDAQ: TLRY), and Hexo Corp. (NYSE: HEXO)  have faced extreme challenges in April and the trend looks set to continue. As big Canadian producers continue to suffer, online focused CBD companies such as World High Life PLC (OTC: WRHLF, AQSE: LIFE) are somehow thriving. 

COVID-19 lockdowns are beginning to bite 

The key driver is, of course, COVID-19. States around the world have imposed heavy lockdowns that have had adverse effects for many businesses. For cannabis companies in particular the Canadian lockdowns have proven to be a huge challenge. Retailers were forced to close their doors on April 4th and even now can only accept online or phone orders. This has further squeezed the supply chain making it difficult for Canadian giants like Aurora to shift their stock. 

Of course COVID-19 alone doesn’t kill a business. Aurora, Hexo, and Tilray were all in precarious positions before the pandemic. All three producers have struggled with cash flow problems and have been forced to make major cutbacks, making them unattractive prospects for most investors. 

This doesn’t mean the cannabis sector is dead, far from it. While recreational cannabis focused companies are struggling, CBD companies have been able to continue operations in a large part thanks to less burdensome regulations and the fact that 60% of all CBD sales are online already, allowing these companies to mitigate the challenges posed by lockdowns. 

CBD companies could offer cannabis investors safe harbor

While Tilray has been shifting its focus to the potentially lucrative European market they’ve found themselves hampered by regulations. The sudden shift towards recreational cannabis legalization is taking longer than expected and this is a big problem for recreational cannabis producers. CBD companies on the other hand are able to take advantage of a market that is predicted to be worth 58 billion Euro by 2029. This is a big part of why World High Life PLC (OTC: WRHLF, AQSE: LIFE) and its wholly owned subsidiary Love Hemp represent such a great opportunity. 

On May 6th the company announced that it has achieved a 39% increase in sales month-on-month since January 2020. This is an impressive achievement in a difficult time and is largely down to the impressive groundwork that the company laid over the course of 2019. Love Hemp is the fastest growing, and most trusted, CBD brand and the company made significant efforts to shift to online sales as the COVID-19 crisis worsened in an effort to help its customers. 

SEE ALSO  What does the US sanction on Venezuela mean for the oil sector?

In addition the brand has secured listings with leading retailers, including Boots, Ocado, Holland Barret and Sainsbury’s. It is also now the best selling CBD brand for Alliance Healthcare, the UK’s leading distributor for pharmacies and independent retailers. 

Beyond Love Hemp 

While the Love Hemp story is already impressive the company isn’t sitting on its laurels. It is working hard to develop new products and Love Hemp Immune launched in April 2020 more than six months ahead of schedule. There are a range of new products already in development, including confectory, drinks, oils and sprays. 

World High Life is also seeing success with other assets, including its global online retailer CBDoilsUK. The brand will expand its product portfolio with new brands within the next couple of months. Additionally the company’s wholesale production unit LH Botanicals is expanding its production capacity in order to meet rising consumer demand during the COVID-19 lockdowns. 

Communication is the key 

The challenge that World High Life has overcome is one of communication. Many people are still unclear on the benefits of CBD and there is a lot of misinformation out there. The company has taken strong steps to become a thought leader in the CBD space and ensuring that their customers are provided with realistic claims. 

This sets the company apart from many other CBD brands, who like to bend regulations to make unverified claims about the efficacy of their products. Everything Love Hemp says its products can do is based on testing and real information. For example the company offers a first time buyers guide to help CBD novices decide if it is the right solution for them. 

This communications led approach has helped the company build a lot of goodwill and places them in a strong position to help guide the conversation about CBD in the UK, and hopefully beyond. 

SEE ALSO  The crypto market is on the rise, while the U.S. GDP suffers the biggest slump in its history

A business built the future 

Whether we like it or not, the effects of the COVID-19 lockdowns are likely to continue to echo long after we’re allowed to leave our homes. People will be reluctent to return to their normal lives and there will be an ever-larger focus on online shopping. Big recrational cannabis companies will struggle to cope with this but online focused CBD companies, like World High Life PLC’s (OTC: WRHLF, AQSE: LIFE) wholly owned subsidiary Love Hemp are well placed to thrive in this new world. 

Five Reasons investors are interested in World High Life 

  1. The company has consistently improved sales month on month over the course of 2020
  2. Its education efforts have helped build trust in the UK CBD industry and the Love Hemp brand 
  3. The company is at the forefront of the conversation regarding CBD regulations and seeks to be a thought leader, not a rule taker 
  4. Love Hemp is resistant to the decline of brick and mortar business and is able to take advantage of rising online sales 
  5. CBD companies like World High Life are more resistant to adverse market conditions than big Canadian cannabis producers, making them an excellent hedge for your cannabis portfolio

(Featued image via World High Life)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

Saul spends his days searching for the latest breakthrough Fintech technology, he also has a keen interest in social investing and how it can help developing economies stand on their own two feet.