- SinglePoint Inc. announced that its range of pre-rolled hemp cigarettes, 1606 Hemp Direct, saw revenues growth by 133% quarter-on-quarter
- CBD-infused cigarettes target smokers looking for smoother alternative to tobacco, with CBD-infused product market set to reach $23.7 billion by 2023
- 1606 Hemp Direct cigarettes currently sold by network of 400 retailers across 19 states, with the company seeking to expand its number of vendors in near future
- SinglePoint forecast that its 1606 Hemp product could generate between $2.75 million – $5.5 million in annual revenues per 1,000 stores
As public opinion of nicotine cigarettes continues to sour with each increasingly health-conscious generation, consumers are seeking safer alternatives to smoking—and hemp cigarettes have taken center stage. SinglePoint (OTCQB: SING), a publicly traded company dedicated to acquiring businesses focused on emerging technologies, recently reported that its hemp cigarette brand 1606 Original Hemp had posted a remarkable 133% growth in sales this quarter relative to the previous one—a growth figure that points to the public’s increasing interest in the safer alternative (http://cnw.fm/J7Lfv).
The 1606 Original Hemp product range (http://cnw.fm/G0oG9), which consists of pre-rolled organically cultivated hemp cigarettes, was launched December 2019 at the MJBizCon Conference in Las Vegas (http://cnw.fm/BZzd3) targets a rapidly growing market of smokers looking for smoother alternatives to conventional tobacco products. Since then and within a few short months, the product has gained widespread popularity, with over 400 retailers across 19 states now marketing the brand.
SING’s hemp cigarette offering has been meticulously designed to be both nicotine and tobacco-free and is crafted from broad spectrum American grown, harvested and cured hemp flower. Moreover, with less than 0.3% THC and nearly 20% cannabinoid oil (CBD) content, the pre-rolled cigarettes have quickly consolidated a domineering position within the largely untapped yet rapidly growing smokable hemp market segment. In an insightful recent survey of 5,000 US-based CBD users carried out by the Brightfield Group, tobacco users were revealed to have increasingly turned to CBD products in an effort to quit smoking, with 24% opting to smoke hemp cigarettes as a replacement to cigarettes. Meanwhile, 41% of former smokers were found to have entirely replaced traditional smoking with hemp-derived CBD (http://cnw.fm/It4oF).
The use of industrial hemp products has gained particular prominence in recent years, with a June 2019 market research report by MarketsandMarkets projecting the sector to grow in size from $4.6 billion in 2019 to $26.6 billion by 2025, recording a compound annual growth rate of 34.0% during the period (http://cnw.fm/V01Qw). Meanwhile, a recent study showed that nearly 4 million Americans were choosing to consume non-psychoactive cannabinoid oil (CBD) infused products (http://cnw.fm/mZ8ya), with CBD-infused topical and supplement products now found across a range of mainstream retailers, including the likes of Abercrombie & Fitch and Kroger.
SinglePoint Inc. has chosen to distribute its pioneering product in a novel manner, opting to do so through a targeted direct-to-store (DSD) sales initiative rather than through a conventional distributor. The initial phase of the DSD sales strategy has been largely centered on self-generated store acquisition, during which the company sought to contact a number of retail accounts—ranging from convenience stores to smoke shops scattered across the United States—in a bid to gain at least 250 retailers marketing their products. Within a few months, the company announced that they had already put in place a network of 400 stores across 19 states, surpassing their 250-store goal in a matter of weeks with a number of the new retail accounts reportedly placing reorders for 1606 Original Hemp product.
The growth in scale within SinglePoint’s distribution network has been increasingly apparently in recent weeks. In the last month alone, orders for 1606 Original Hemp have risen by 64% relative to the previous four weeks while average sale sizes have grown by 42%. However, the company’s management has recently revealed an ambitious plan to embark on a new growth phase focused around the acquisition of 2,500 new vendors while simultaneously seeking to increase and enhance the reorder rate from existing accounts. In a statement, SinglePoint announced its anticipation of the 1606 Hemp product generating $2.75 million to $5.5 million in annual sales revenue per 1,000 active accounts (http://cnw.fm/apH9p). That figure could prove to be even more remarkable given that it could single-handedly enable SinglePoint to double its 2019 revenues of $3.34 million.
For more information, visit the company’s website at www.Singlepoint.com.
NOTE TO INVESTORS: The latest news and updates relating to SING are available in the company’s newsroom at http://cnw.fm/SING
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