PALM SPRINGS, Calif. — Almost a month after it started trading on Toronto’s stock exchange, the Hempshire Group Inc. is sharing its strategy to accelerate growth in the smokeable alternatives market.
Hempshire is a non-tobacco and non-nicotine smokeable alternatives company that formulates and sells its proprietary brand of cannabidiol (CBD) hemp smokes under the Mountain Smokes label. The company started trading on the TSX Venture Exchange on Aug. 11 with the trading symbol “HMPG.”
The smokes come in Natural, Pineapple Squeeze and Mint Squeeze flavors, and are designed to look, feel, burn and be packaged like traditional tobacco cigarettes but without the harmful effects, according to the Palm Springs, Calif.-based company. The Mountain Smokes brand includes Mountain Originals, which have less than 0.3% tetrahydrocannabinol (THC), and Mountain Zeros, which have non-detectable less than 0.001% THC, the company said.
“The Mountain Zeros line allows Hempshire to service certain global jurisdictions that have stricter THC regulations, and this line is also expected to be launched in the United States for those who may desire a Hemp Smoke without the risk of testing positive for THC,” Hempshire said.
Hempshire’s strategic initiatives are centered around targeting three global addressable markets: the global tobacco market, CBD market, and e-cigarette and vape market.
“The tobacco market is of particular interest and significance to Hempshire due to its immense size, shifting user preferences and tightening governmental regulations,” the company said.
Demand for e-cigarettes and vape has also grown due to manufacturer-sponsored studies presenting these nicotine-based products as a safer alternative to traditional cigarettes, Hempshire said, however, these products are also being restricted in countries like the United States. Mountain Smokes provide e-cigarette and vapor users with the same hand-to-mouth experience, are also available in multiple flavors, and can be sold at the same locations, Hempshire said.
the company is also capitalizing on the global CBD market, which is expected to expand at a compound annual growth rate of nearly 17% from 2022 to 2030, the company said.
To expand in those three markets, Hempshire plans to follow these four strategic initiatives:
- Establish brand awareness and sales growth in the Unites States
- Position itself for international growth
- Build out white labelling and contract manufacturing collaborations by pursuing partnerships with well-known brands and celebrities
- Position its production capabilities to scale quickly and profitably
It will do this under the leadership of Hempshire President and CEO Martin Marion, formerly a senior executive at multiple Madison Avenue advertising agencies responsible for the marketing strategy of several global brands, and CMO Eric Starr, who previously worked for Apple’s ad agency Media Arts Lab.
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