British American Tobacco Group is investing nearly $57 million in Denver-based cannabidiol (CBD) company Charlotte’s Web. The move, which results in BAT having a 20% stake in Charlotte’s Web, represents another stop for BAT in its exploration beyond tobacco and nicotine, BAT Chief Growth Officer Kingsley Wheaton said.
“The appeal of Charlotte’s Web is clear to us: a wide portfolio of high-quality products, strong brand equity, an extensive retail presence and robust [business-to-consumer] e-commerce platform serving a loyal U.S. consumer base and a track record of in-depth scientific research,” Wheaton said.
The funding allows Charlotte’s Web to fund growth initiatives, including expanding its portfolio of botanical wellness products.
“This investment will provide Charlotte’s Web with funding that we anticipate will help unlock deeper and broader research and development that is key to our continued innovation, global footprint and the advancement of our intellectual property portfolio,” Jacques Tortoroli, CEO of Charlotte’s Web, said.
Charlotte’s Web, a Certified B Corporation listed on the Toronto Stock Exchange, has hemp extract wellness products under brands including Charlotte’s Web, CBD Medic and CBD Clinic. Its whole-plant CBD extracts come in full-spectrum and broad-spectrum (THC-free) options. Its products—from CBD capsules to topicals to pet products and more—are distributed to more than 15,000 retail locations.
This isn’t the first time BAT, London, has shown interest in cannabis. The tobacco company, which owns Reynolds American Inc., is also working with a Canadian cannabis licensed products to accelerate its beyond-nicotine strategy.
It entered a strategic collaboration agreement with Organigram Inc. focused on research and product development activities of next-generation adult cannabis products, with an initial focus on CBD.
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