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HempFusion Wellness Inc. (TSX: CBD.U) (OTC: CBDHF) (FWB: 800) Enters China with Probulin Probiotics

  • HempFusion Wellness Inc. has announced the launch of certain Probulin Probiotics products in China to be sold on Alibaba Group Holding’s Tmall Global
  • Tmall offers a number of features and advantages, which will be pivotal in helping HempFusion earn significant revenue
  • Probulin Probiotics is recognized as one of the fastest-growing probiotics brands in the United State Natural Products Industry, according to SPINS syndicated data, and by entering the Chinese market, HempFusion hopes to replicate this growth in the vast Chinese marketplace

The Chinese probiotics market is booming and is expected to reach $12.75 billion in 2022, up from $6.47 billion in 2017 (https://cnw.fm/12ijU). Moreover, with more and more people in China appreciating the health benefits associated with the use of probiotics, according to a 2020 survey (https://cnw.fm/gnJrj), the conditions seem favorable for HempFusion Wellness (TSX: CBD.U) (OTC: CBDHF) (FWB: 800) through its wholly-owned subsidiary, Probulin Probiotics, LLC, to thrive.

In a recent news release, HempFusion, a leader in the health a wellness cannabidiol (“CBD”) industry, announced that it would target this Chinese market through Probulin (https://cnw.fm/1YpDR).

Probulin will offer certain products on Alibaba Group Holding’s Tmall Global, with shipments expected to commence in late March. Thereafter, HempFusion’s Probulin products will be available for purchase – the go-live date is currently set at March 29. The choice of this date is strategic for HempFusion as it will ensure that the Probulin products are purchasable before the mid-year 618 shopping festival, one of China’s largest single-day shopping extravaganzas, which is usually held in June. In 2020, it shattered records with over $98.52 billion in sales in 24 hours.

By tapping into the massive Chinese market, HempFusion anticipates a significant revenue increase. “This strategic launch provides us with a tremendous opportunity to reach one of the largest online consumer bases in the world and drive significant revenue for the company,” said Jon Visser, HempFusion’s Chief Revenue Officer. This is thanks, in part, to the features and benefits offered by Tmall Global.

Tmall Global is the world’s largest cross border online marketplace that enables foreign-based vendors to access the Chinese market, reaching more than 750 million potential consumers in mainland China, Hong Kong, Macau and Taiwan. The platform provides a win-win situation for both the sellers and consumers as the Chinese consumers, whom the vendors target, have a high affinity for imported products, which they consider as being high-quality. Tmall also leverages Alibaba’s elaborate consumer analytics tools to provide the sellers with insights into Chinese consumers’ shopping behavior (https://cnw.fm/FHqjt).

While these features and benefits are some of the reasons why HempFusion may have chosen Tmall, perhaps the most significant – because of its potential to influence sales and revenue – is that the platform regularly engages consumers with brands through live streaming, educational videos and group chats. HempFusion and Probulin could take full advantage of this, given that most Chinese consumers lack product understanding of probiotics despite acknowledging their health benefits.

“Although China’s probiotics market is booming, consumers are not well-equipped in terms of scientific knowledge,” reads an article summarizing the findings of a report on the probiotics market in China. “One of the major knowledge gaps is not knowing the differences between probiotics, prebiotics and lactic acid bacteria.” With the interactive tools on Tmall, it would be befitting for Probulin to use the platform to bridge the knowledge gap. By creating awareness, HempFusion would surely appeal to more buyers, translating to additional revenue.

“Probulin looks forward to utilizing our growing team of celebrity influencers to take advantage of these innovative, interactive opportunities to reach new consumers in a fun and entertaining way,” Visser continued. On his part, Dr Jason Mitchell, N.D., HempFusion’s co-founder and CEO, hailed the launch as a tremendous milestone that would also be an opportunity to educate the Chinese market on the many health benefits of probiotics.

“We believe Probulin to be the first American company to deliver cold and protected probiotic supplements direct to Chinese consumers,” Dr Mitchell stated. “In addition, our scientifically validated MAKTrek® 3-D Probiotic Delivery System is designed to protect and nourish the probiotics so that more can arrive alive in the gut. These two distinguishing factors result in a positive influence on the microbiome and overall wellness.”

HempFusion’s Probulin is recognized as one of the fastest-growing probiotics brands in the United States Natural Products Industry according to SPINS syndicated data. With its strategic entry into the Chinese market and the favorable conditions therein, the company may replicate this growth in the new territory.

HempFusion also recently announced that its OTC Topical Products were ranked number one in both sales dollars and units sold at a major Food & Drug Mass (“FDM”) retailer according to a recent NielsenIQ share report (https://cnw.fm/nS2Pm).

For more information, visit the company’s website at www.HempFusion.com/corporate-information.

NOTE TO INVESTORS: The latest news and updates relating to HempFusion are available in the company’s newsroom at https://cnw.fm/CBDHF

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