Canada may have been the first major economy to legalize recreational cannabis but the country has struggled to make the most of its first-mover advantage.
In comparison, American companies have jumped on the opportunities that were opened up in 2018 with the passage of the Farm Bill. Veritas Farms Inc (OTC: VFRM) has secured a partnership with FounderMade to release a line of full-spectrum-hemp beauty products called Veritas Beauty.
Canada’s woes highlight America’s success
Ontario Cannabis Retail is a company that is part of Crown corporations of Canada (a conglomerate of state-owned companies) and the only retailer and wholesaler licensed to sell cannabis in the Canadian state of Ontario. Ontario Cannabis Retail is the dependency of the state’s retail stores.
In the latest earnings release, the company announced losses of $41.90 million (€ 38 million) in the last fiscal year. Total expenses were $106.08 million (€96.2 million) due, according to the company, to the heavy investment needed to start a business like this.
It should be noted that since 17 October 2018 the consumption of cannabis for recreational use is legal in Canada. However, the implementation of this infrastructure is being complicated.
The supply chain has not worked as expected and there has been a shortage of products. A problem to which interventionist solutions are being sought. The first was to limit licenses to 25 retail businesses.
Ontario Cannabis Retail’s poor results have led to the resignation of general manager Patrick Ford. His replacement will be the former vice-president, Cal Bricker, who will seek to find the profitability of the business.
A spokesman for Ontario’s chief financial officer, Rod Phillips, said the company’s losses are due to the start-up costs of this project. “The legalization of cannabis is something new for Ontario.
Investments were needed to establish a system that could achieve our goals: to protect young people and combat the illegal market. OCRC’s revenue prospects reflected the initial costs for the development of this retail system,” says another of those responsible, Emily Hogeveen.
“Ontario Cannabis Retail Corporation (OCRC) needed to make foundational investments to support Ontario’s approach to retailing, which will allow it to establish a broad network of private retail stores throughout the province to effectively combat the illegal market,” Hogeveen added.
Veritas Farms secures partnership with FounderMade for new beauty product line
In the U.S., the cannabis market looks brighter and several cannabis companies experienced growth in the last year. One significant growth area has been the CBD market, which has grown on the back of the significant Farm Bill in December 2018. As 2019 comes to a close a few companies have experienced significant growth.
Veritas Farms Inc (OTC: VFRM) has had a hugely successful 2018 and has seen 500% quarter on quarter growth this year already and generated more than $2.9 million in total revenue.
This has largely been thanks to the company aggressively pursuing new distribution partnerships. In early November, the company secured an agreement with Winn Dixie and Bi-lo supermarkets to supply CBD products to 125 South Eastern stores. Veritas is looking to build on that movement with today’s exciting announcement.
Full-spectrum product line made with hemp
FounderMade has announced that it has partnered with Veritas Farms to produce Veritas Beauty, a full spectrum hemp beauty product line.
The partnership was announced at a dinner which includes top retailers and publications including Saks Fifth Avenue, Macy’s Wegmans, Women’s Health Magazine, and Elle.
The event was designed to give these industry leaders an opportunity to get hands-on with Veritas Farm’s and FounderMe’s line of beauty products.
The new line of products includes:
- Rejuvenating Night Cream (with full-spectrum hemp oil ― 100 mg): With two forms of advanced peptides, this cream boosts immunity and jump-starts the skin’s stress-ﬁghting mechanisms, preparing it for everyday environmental aggressors. 30 mL (1 fluid oz.) $37.99
- Cucumber Eye Cream (with full-spectrum hemp oil ― 100 mg): Enhanced with cucumber extract, this 3-in-1 Cucumber Eye Cream formula contains vitamins A and E, and neem extract to help skin appear more youthful and to address dark circles, fine lines, and puffiness around the delicate eye area. 15 mL (.5 fluid oz.) $33.99
- Hyaluronic Day Cream (with full-spectrum hemp oil ― 200 mg): This custom emulsiﬁcation of hyaluronic acid, squalane, jojoba seed oil, and apricot kernel oil provides multi-layered moisture which hydrates and absorbs quickly. 30 mL (1 fluid oz.) $35.99
- Mattifying Blemish Cream (with full-spectrum hemp oil ― 200 mg): This cream achieves a clear, wholesome complexion with a robust blend of blemish-ﬁghting and skin-rejuvenating ingredients that help purify and ﬁght swelling and irritation of the skin. 50 mL (1.7 fluid oz.) $35.99
Veritas Farms have taken the CBD industry by storm with their commitment to transparency and high-quality products. The company takes care to ensure that customers are able to confirm the contents and quality of any product that bears their brand.
This approach has paid off and it is likely that the newest line of products will help to cap off an astounding 2019 for the company, and the American CBD industry generally.
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.
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