As PureKana broadens route to market, it expands the portfolio to innovate beyond CBD into a wellness brand addressing diverse consumer need states
Innovation
Loop
VANCOUVER, British Columbia, Sept. 26, 2022 (GLOBE NEWSWIRE) — Simply Better Brands Corp. (“SBBC” or the “Company”) (TSX Venture: SBBC) (OTCQB: PKANF) is pleased to announce its PureKana wholesale distribution expansion into the four large U.S. Markets of California, Texas, Florida, and Illinois. Building upon its large, direct to consumer presence, the expanded brick and mortar retail footprint now reflects wholesalers, drug stores, convenience stores, as well as CBD specialty retail.
After PureKana was recognized by Brightfield Group as one of the fastest growing brands in the category in their 2022 Mid-year US CBD report, it is accelerating growth through online customer acquisition of 13,000+ consumers per month, the new wholesale channel expansion and consumer-centric innovation in a broader set of consumer need states. These sources of growth are the drivers of our 362% growth versus year ago at a 68% gross margin in the first half of 2022.
Innovation Need States
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“Through extensive consumer research, we identify innovation hunting grounds for the ever-evolving wellness consumer. With a more diverse set of active ingredients, new form factors, and/or emerging cannabinoids, the PureKana brand is now addressing consumer problems agnostic of CBD. For example, our recent keto gummy launch and upcoming nootropic offering do not contain CBD and the old staples of gummies and oils, will be supported by sublingual oral strips and hard candies for quick onset, portability, and discreet use,” says Kathy Casey, Simply Better Brands CEO.
The expanded PureKana wholesale team has made significant progress in expanding its national distribution footprint while focusing on their new alternative innovation cannabinoid portfolio. In addition to the current footprint, the company has expanded distribution in eight states to include: IL, WI, MN, FL, GA, NC, SC, and CA. The eight-state expansion is driven by entry into three new convenience gas and specialty distributors in the past six months.
Additionally, PureKana launched into the convenience trade channel in 58 premium, Loop Neighborhood Market California locations in September 2022. The new distribution will focus on our new alternative cannabinoid convenience portfolio and will be merchandised in PureKana-branded counter displays to meet the needs of the on-the-go consumer as retailers look to offset decreasing tobacco sales. “The convenience trade channel adapts quickly to consumer demand trends, and our new launch plan will provide an opportunity for us to interact with thousands of consumers looking for new hemp-based wellness products,” says Simply Better brands Vice President, Sales, Joe Wichser. “California is one of our biggest markets for our direct-to-consumer business, which allows us to leverage our localized, marketing capability to drive more wellness consumers into the doors of Loop Neighborhood market.” Loop Neighborhood Markets ranks No. 57 on CSP’s 2022 Top 202 ranking of c-store chains.
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The PureKana wholesale team anticipates that the convenience store trade channel will lead the growth in driving innovation throughout the category. As consumers begin to get back to their pre-COVID shopping trends, the convenience trade channel continues to evolve in its product offerings and adoption.
SBBC further announces today that it intends to pay the first two payments to Julianna Peña, for services rendered pursuant to an ambassador agreement effective as of May 1, 2022 (the “Agreement”) which include online posts, endorsements and social media content. Pursuant to the Agreement, the Company has agreed to pay the first two payments in the aggregate amount of CAD$66,380 through the issuance of 213,097 common shares (“Common Shares”) at a deemed price of CAD$0.30 which is determined based off of the 10-day volume weighted average price of the Common Shares as of the date of this news release, the Agreement and issuance of Common Shares are both subject to approval of the TSX Venture Exchange. The Common Shares are subject to a four-month hold period from the date of issuance in accordance with applicable securities laws. For further information on the Agreement, SBBC refers the reader to its news release dated March 10, 2022.
About Simply Better Brands Corp.
Simply Better Brands Corp. leads an international omni-channel platform with diversified assets in the emerging plant-based and holistic wellness consumer product categories. The Company’s mission is focused on leading innovation for the informed Millennial and Generation Z generations in the rapidly growing plant-based wellness, natural, and clean ingredient space. The Company continues to focus on expansion into high-growth consumer product categories including plant-based food, clean ingredient skincare and plant-based wellness. For more information on Simply Better Brands Corp., please visit:
https://www.simplybetterbrands.com/investor-relations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information
Simply Better Brands Corp.
Brian Meadows
Chief Financial Officer
+1 (855) 553-7441
ir@simplybetterbrands.com
