EuroLife will have a consistent supply of hemp filler from a hemp cultivation plant on the outskirts of Dresden, Germany
Inc () (OTCMKTS:CANVF) revealed Tuesday that it plans to launch its own exclusive hemp cigarette brand, "HANF SWISS" and focus distribution efforts around the European market.
The Canadian company said it will initially distribute the brand through various brick-and-mortar outlets in Europe, alongside its own CBD consumer package goods in the e-commerce marketplace once fully operational.
Significantly, is on its way to becoming a player in Europe’s hemp market after signing a binding letter of intent, which awards the Canadian cannabis group the right to purchase 20% of a yet-to-be-formed German company called German HempCo, which will control a hemp cultivation plant on the outskirts of Dresden, Germany.
READ: EuroLife Brands pushes into Europe's hemp market with new stake in Germany
Through its stake in the German company, EuroLife said it will have a “consistent supply of hemp filler” from the Dresden cultivation project.
EuroLife said HANF SWISS hemp cigarettes will be tobacco-free, nicotine-free, and will be rolled in organic hemp paper with a natural wood pulp filter.
Rolling out synergistic brands
"As we work towards closing on our interest in the Dresden hemp cultivation project, we will continue to proactively incubate down stream business verticals with the aim of maximizing margin capture on cultivated feed-stock supply," said CEO Shawn Moniz.
"Upon finalization of our ownership position, EuroLife intends to aggressively roll-out synergistic and high-value brands for distribution into the European marketplace. The introduction of HANF SWISS hemp cigarettes signals the foray into one of the fastest growing market segments of the cannabis industry: dried and smokable hemp flowers,” he added.
Weaning away smokers from tobacco
The EuroLife Brands boss noted that recent market reports suggest more-and-more smokers are turning to hemp because it contains “no tobacco, no nicotine, and is rich in various potentially beneficial compounds such as CBD and terpenes.”
An industry report from Research and Markets pegs the value of the global cigarette market at $1,124 billion by 2024, and it is expected to grow at a 4% compound annual growth rate over the next five years.
“With the recent marked increase in cases of health problems associated with electronic cigarette and vaporizer use, natural hemp cigarettes afford consumers another modality of ingestion from which to choose,’ said the company.
According to data from Brightfield Group, a survey of more than 5,000 CBD users found that 24% have used CBD to quit smoking and replace cigarettes with smoking hemp or vaping. Additionally, 41% of quitters have replaced tobacco entirely with hemp CBD. The growing availability of hemp cigarettes in cannabis-friendly countries like Germany and much of the European Union will likely see the dried and smokable hemp flower market continue to grow impressively.
EuroLife has recently been on a mission to migrate all of its cannabis and hemp-related business to Europe and away from North America.
In recent weeks, the group has struck relationships with three important partners to bring new products to the European marketplace, namely, with The Yield Growth Corp, Champignon Brands Inc, and AgraFlora Organics International Ltd, the firm noted.
Contact Uttara Choudhury at [email protected]
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