Hemply Balance initiates sales in Japan through the signing of a distributor agreement
Hemply Balance Holding AB (publ) ("Hemply Balance" or the "Company") subsidiary Hemply Services AB has today signed an agreement with the Japanese distributor Life Activation Co. Ltd. The signing means an initial order of products worth SEK 500,000 (€ 50,000) and sales to commence in Japan.
Background
In October 2021, Hemply Balance announced the signing of a letter of intent with Japanese distributor Life Activation. The company has since worked with Life Activation and Hemply Balance suppliers to ensure that the Company's products meet the rigorous requirements of the Japanese market on CBD products. The work was successfully completed in February 2022 and today the parties have agreed to enter into agreements.
The agreement
The agreement between the parties is subject to an exclusivity of one year, limited to the Japanese market. The initial order entails a gross turnover of approximately SEK 500,000 (€50,000) and Life Activation will spend a minimum of SEK 190,000 (€19,000) on marketing in Japan in 2022. The order includes the complete product portfolio of the Hemply Balance brand.
The Japanese CBD market
The Japanese CBD market has enjoyed solid growth since the country permitted the marketing of CBD oils in 2016. The Japanese CBD market is expected to have an annual growth rate of 100% and the market value is expected to reach SEK 19 billion in 2024 (€1,9bn).[1]
About Life Activation
Life Activation is a distributor and reseller that has been operating in the Japanese market for about five years. Hence, they have an extensive clientele including both retailers and consumers. Life Activation has a long and successful experience of working with Scandinavian brands and also experience of representing other CBD brands.
Comments
We are very proud to announce the distributor agreement with Life Activation in the Japanese market. The sales launch will commence shortly, as we have just received the first order. The Life Activation company has a great and experienced team ensuring us a solid partner as the CBD market in Japan is blossoming," says Jonas Lenne, CEO Hemply Balance.
For further information, please contact:
Jonas Lenne
CEO.
Email: investor.relations@hemplybalance.com
Pingis Berg-Hadenius
Chair
Email: hadenius@economista.se
About Hemply Balance Holding
Hemply Balance Holding AB (publ) is an e-commerce-focused health supplement company that sells safe and high-quality products in three categories: cosmetics, dietary supplements, and supplements for pets. The focus is mainly on CBD supplements and adaptogens. We add what we call "The missing ingredient" to our customers. The business model is focused on the companies’ e-commerce with elements of strategic retailers for brand building. The company owns two brands, Hemp Juice and Hemply Balance. The former was acquired in the first quarter of 2022 and the Group's goal is to continue with further acquisitions.
Augment Partners AB, tel. +46 8 604 22 55, e-mail: info@augment.se is the Company's Mentor.
For more information, see the Hemply Balance website www.hemplybalance.com
[1] Swiss Business Hub Japan (Switzerland Global Enterprise), The CBD market in Japan. https://swissbiz.jp/wp-content/uploads/dlm_uploads/2020/03/CBD-Market-in-Japan.pdf