Health and Wellness Company Perrigo Enters CBD Market With a Partnership Investment of $50 Million
- Perrigo Company has partnered with Kazmira LLC in a $50 million investment to enter the U.S. CBD market.
- The two companies formed a partnership with a two-phase approach to its entrance in the market.
- Together, the partnership’s goal is to provide consumers with healthy and safe over-the-counter health and wellness CBD products that are THC-free.
Perrigo, a major global provider of health and wellness products, has partnered with Kazmira LLC, a CBD manufacturer in Colorado, in order to enter the growing U.S. CBD market.
Perrigo, which is based in Dublin, Ireland, invested a total of $50 million to acquire a 20% equity stake in Kazmira, who are known for their hemp-based products that are free of THC.
The partnership comes with a two-phased scientific approach for entering the CBD market, and how both companies will contribute to their collective growth.
“We are proud to launch a strategic relationship with Perrigo, the industry leader in delivering safe and effective OTC self-care products,” stated Kazmira’s Co-CEOs Dr. Priyanka Sharma and Pulak Sharma.
“As we continue to grow our business, we look forward to leveraging Perrigo’s regulatory and manufacturing expertise in concert with Kazmira’s proprietary technology for large-scale biomass processing and our established reputation for producing and marketing the highest quality THC-free CBD products.”
The first phase of the two companies’ strategic approach involves a scale-up of Kazmira’s facilities and labs, in accordance with current Good Manufacturing Practices (cGMP), to have the ability to produce CBD from industrial hemp that is free of THC and that meets Perrigo’s standards in regard to consistency and reliability.
The second phase of their approach is where Perrigo will strive to launch hemp-based CBD products that contain no THC to a number of different global markets. They will also leverage their partnership with Kazmira, which exclusively deals with the U.S. store brand market.
Murray S. Kessler, CEO and President of Perrigo, stated in a news release:
“Science-based natural products are one of Perrigo’s 5 core growth pillars and THC-free CBD products fit perfectly into our self-care strategy. Until now, this emerging industry has lacked the regulatory expertise necessary to bring a trusted supply of CBD to market. Some have even described it as the wild, wild west. We believe that Kazmira’s deep understanding of CBD science, combined with Perrigo’s regulatory expertise and investment, allows us to lead the industry through the next phase of development of rigorous quality standards and proactive engagement with regulators.”
Kessler continued, “Consumers and retail customers want CBD products and we believe they deserve a reliable source of broad-spectrum, THC-free CBD they can depend on. Whether it is the specific concentration of CBD or a THC-free claim, consumers must be able to trust statements made on the label of a product and we believe Perrigo can provide this to the marketplace.”
It makes sense for Perrigo and Kazmira to partner up in an attempt to enter the U.S. CBD market. Separately, the two companies possess strong market assets, such as Perrigo’s ability to reach global markets and Kazmira’s numerous facilities and labs for production. Working together, they should be able to enter the CBD market with momentum.
One potential outlet for the partnership’s THC-free hemp-derived CBD products is in marijuana dispensaries, which have been gaining popularity as a CBD sales outlet across the country. This would help give their product credibility and would put it on the shelves of some of the highest-grossing brick-and-mortar stores in certain states.