South West Brands Limited (SWB), a London-based group targeting the cannabidiol (CBD) market, is aiming to take advantage of burgeoning investor interest in the global cannabis sector, which is estimated by some analysts to be worth US$97.4bn (£71bn) by 2026.
CBD is a compound found in cannabis plants that is non-psychoactive and is used in multiple countries to treat a variety of medical conditions including chronic pain, insomnia and anxiety.
The company’s chief executive, former City banker Rebekah Hall, said that SWB will bring “scale and purpose-led products to a segment that lacks real consumer cut through”, telling the Evening Standard on Monday that the company is aiming to “leverage celebrity and retail partnerships” to bring cannabis into the mainstream through the launch of various consumer products.
The first of these, which is aimed at helping women through the stages of their menstrual cycle, is scheduled for release in April this year alongside other planned brands in the beauty segment.
The CEO also told the Standard that the company is aiming to “launch The Hut Group of cannabis”, referring to THG PLC (LON:THG), an e-commerce firm that operates over 100 websites selling fast-moving consumer goods and carries a market cap of around £7bn.
Hall already has prior experience in the cannabis space, having previous launched CBD-infused soft drink Botanic Lab which is currently stocked in multiple chains including Waitrose, Superdrug and Holland & Barratt.
“My own experienced team combines a wealth of consumer brand and cannabis-sector knowledge. Our recent successful funding round involves experienced institutional investors and validates our vision to elevate the CBD segment to the next level of powerful consumer relevance.
We look forward to introducing new brands to the market in 2021 and playing an active role in the process of market consolidation over the coming months”, Hall said in a statement.
SWB has already raised £500,000 through a convertible loan note, half of which was invested by investment firm FastForward Innovations Ltd (LON:FFWD), while it also has plans to raise a further £5mln.