Today, I am very happy to be joined by Marty Sumichrast and Caryn Dunayer. Marty is Chairman and CEO and Caryn is Co-founder & President of cbdMD (NYSEMKT:YCBD), the first American NYSE-traded CBD company.
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- 1:10 – Why the company pivoted from Level Brands to cbdMD. CBD market was about to explode with implementation of the Farm Bill. “The biggest deal I’m ever going to do.”
- 3:25 – Inconsistent policing of CBD products is a challenge, but YCBD sells in all 50 states. Regulations vary state to state which breeds misinformation. Bad actors in the space, with unsupported claims on their products, give the sector a bad name.
- 6:35 – Quality and efficacy of US grown CBD vs. CBD grown elsewhere. Tracking from seed to sale and ensuring quality and efficacy is salient, and that’s more difficult to manage outside the US. Overseeing extraction process. Integrated with farming, extraction, and manufacturing out of Montana and North Carolina.
- 8:10 – Detailing recent earnings report where YCBD reported being 78% ahead of projections for quarter and on track for being a year ahead of original revenue estimates. Where YCBD is trending now is where it expected to be in May 2020. Some competitors had no sequential growth between September and March, while YCBD had 55% quarterly growth. But growth brings its own set of issues.
- 11:59 – No plans for further acquisitions and partnerships. Focus is singular – to be the number one CBD brand in the country. Increasing number of customers and building the brand is the main goal right now.
- 13:08 – Branching into pet CBD products for horses, cats, and dogs. Massive spike in pet side of the business. Big focus moving forward. Head of pet division comes from PetSmart – the goal is to make that division 1/3 of YCBD’s business. Veterinarian on staff.
- 17:00 – No plans to branch into food and beverage CBD sector; efficacy and affordability make this a difficult space to get into. CBD, to be effective, needs to be taken every single day.
- 20:18 – Big names on board for sponsorship – Bubba Watson, Steve Arpin, Big 3 League, Rampage Jackson from the UFC – they came on first as customers who got pain relief from an all-natural product. The partnerships all have gone very smoothly. YCBD won’t work with someone who hasn’t used their products for at least a month.
- 26:45 – Words of advice and insight for interested investors in the company and in the space. YCBD focuses on US CBD, traded on an US exchange, no THC and affordable price points. More education on CBD is essential.
- 28:50 – Plans for expansion – interested in expanding globally. From New Zealand to the UK, Canada, and South America – announcements will be coming up in the next few months. Also, looking to get into more brick and mortar stores. To gain significant market share, that needs to be a focus.
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