CALGARY, AB, Aug. 24, 2022 /PRNewswire/ – The Hempshire Group, Inc. (TSXV: HMPG) (“Hempshire” or the “Company”) is a California-based non-tobacco and non-nicotine smokable alternate options firm that formulates and sells its personal proprietary model of cannabidiol hemp smokes (“Hemp Smokes”) beneath the MOUNTAIN® Smokes label in Natural, Pineapple Squeeze™ and Mint Squeeze™ flavors. MOUNTAIN® Smokes look, really feel, burn, and are packaged like tobacco cigarettes, however with out the dangerous results and addictive properties of tobacco and nicotine, and with out components or chemical preservatives.
HEMPSHIRE GROUP PROVIDES CORPORATE OVERVIEW AND ANNOUNCES STRATEGIC INITIATIVES TO ACCELERATE GROWTH IN THE SMOKABLE ALTERNATIVES MARKET (CNW Group/The Hempshire Group, Inc.)
Hempshire just lately commenced buying and selling on the TSX Venture Exchange and is happy to offer an summary of the Company and its strategic initiatives to assist progress in 2022 and 2023.
THE HEMPSHIRE GROUP, INC – AN OVERVIEW
The Team
Hempshire has established a workforce of profitable executives and companions who’ve been instrumental in creating, constructing and executing launch and advertising methods for a few of the world’s most iconic manufacturers, together with Apple’s Mac, iPod and iPhone, Pfizer’s Viagra, Mars’ M&Ms and Snickers, a number of healthcare merchandise for Bayer AG, GlaxoSmithKline, and different main pharmaceutical corporations, in addition to for corporations together with Coca-Cola, Disney, Nickelodeon, and Diesel.The Company’s President and CEO, Martin Marion, was previously a senior govt at a number of Madison Avenue promoting businesses liable for the advertising technique of a number of world manufacturers. The Company’s CMO, Eric Starr, beforehand labored for Apple’s advert company (Media Arts Lab) as Creative Strategy Director. His work acquired a number of honors, together with ‘iPod Silhouettes’ receiving ‘Outdoor Campaign of the Decade’, ‘I’m a Mac, I’m a PC’ receiving ‘Campaign of the Decade’, and Media Arts Lab received the honour of ‘Agency of the Decade’.Hempshire’s prime expertise was drawn to the Company due to the standard and smokability of MOUNTAIN® Smokes, the addressable market potential, tightening regulatory pressures on tobacco and nicotine, and shifting smoker preferences.
The Products
Hempshire is devoted to transparency in its elements – its Hemp Smokes are formulated with solely natural full-flower hemp, natural mullein, and natural sage, with no tobacco, nicotine, fillers, preservatives or added chemical substances.The MOUNTAIN® Smokes model consists of MOUNTAIN® Originals (<0.3% THC) and MOUNTAIN® Zeros (non-detectible <0.0001% THC). The MOUNTAIN® Zeros line permits Hempshire to service sure world jurisdictions which have stricter THC laws, and this line can also be anticipated to be launched within the United States for many who might want a Hemp Smoke with out the danger of testing optimistic for THC.To date, the Company's MOUNTAIN® Smokes merchandise have been displayed in social media posts from a whole bunch of great influencers within the music, TV/movie, and social media industries. These posts have been made with none paid endorsements.
Addressable Markets
Hempshire's strategic initiatives are centered round concentrating on three world addressable markets with an combination annualized spend of over US$850 Billion.(1) US$849.9 Billion Global Tobacco Market1Hempshire smokable various merchandise provide tobacco cigarette people who smoke the identical acquainted consumption expertise and rituals which have contributed to the large private and social attraction of smoking and, in most jurisdictions, might be offered wherever tobacco cigarettes can be found. However, they include no tobacco and no nicotine, are non-addictive, are created from 100% natural elements, and usually have a retail value at parity or decrease than most name-brand cigarettes.The tobacco market is of explicit curiosity and significance to Hempshire on account of its immense dimension, shifting consumer preferences, and tightening governmental laws. These shifts are highlighted within the following assertion taken from British American Tobacco's web site in September 2021:"Generational variations and shifts in style are persevering with to emerge, as well being and wellness develop into ever-more essential. We anticipate progress in new classes of merchandise, together with – and past – tobacco and nicotine. Consumers count on these to offer stimulation and pleasure, in methods beforehand related to cigarettes. We imagine such progress will offset the expected decline in cigarette consumption."(2) US$18.1 Billion Global E-Cigarette and Vape Market2Demand for e-cigarettes and vapes has grown on account of manufacturer-sponsored research presenting these nicotine-based merchandise as a safer various to conventional cigarettes and a social affiliation psychology round vaping. However, regulatory authorities in a number of international locations proceed to limit vaping and flavored nicotine-based vape juice, presenting a major alternative for Hempshire's smokable alternate options.Hempshire's MOUNTAIN® Smokes present e-cigarette and vape customers the identical hand-to-mouth expertise, are additionally accessible in a number of flavors, and might be offered in the identical handy places, however they don't include addictive nicotine or different dangerous chemical substances, are less expensive, and extra environmentally pleasant.(3) US$5.2 Billion Global CBD Market3The world CBD market is predicted to increase at a compound annual progress price of almost 17% from 2022 to 2030 on account of its robust demand for well being and wellness merchandise and growing authorities acceptance. Hempshire's Hemp Smokes present customers searching for CBD a type of consumption that has a comparatively low value per CBD dose and is extra bioavailable than most ingestibles.
Regulatory Tailwinds
Recently, the standard tobacco and nicotine industries have come beneath growing regulatory pressures within the United States. The Company believes that, though it expects stricter laws to take time, the non-tobacco and non-nicotine smokable alternate options class, and Hempshire because of this, will profit from these altering regulatory shifts. Three current examples embrace:(1) "FDA Advances Ban on Menthol Cigarettes" The Wall Street Journal, April 28, 2022.(2) "Biden administration says it plans to chop nicotine in cigarettes" The Washington Post, June 21, 2022.(3) "FDA Bans Juul From Selling E-Cigarettes in U.S." The Wall Street Journal, June 23, 2022.
STRATEGIC INITIATIVES
Based on its advertising and branding experience, product high quality, addressable goal markets, tightening authorities restrictions for tobacco and nicotine, and altering shopper preferences, Hempshire has laid out 4 preliminary strategic initiatives in its effort to penetrate the smokable alternate options market.(1) Establish Brand Awareness and Sales Growth within the United States – With the usage of proceeds from the current fairness financing, Hempshire's focus shall be to proceed to construct model consciousness of, and shopper demand for, its flagship MOUNTAIN® Smokes line of natural Hemp Smokes. The Company shall be focusing these efforts via the next main gross sales channels:(i) Domestic Wholesale B2B Sales – The Company plans to leverage its {industry} main retail relationships in key designated market areas to facilitate wholesale gross sales applications that end in MOUNTAIN® Smokes on cabinets throughout the United States.(ii) Ecommerce – In July 2022, Hempshire launched a completely featured, conversion-optimized ecommerce web site (https://mountainsmokes.com) that enhances the shopper expertise, offers compelling incentives for quick path-to-purchase, and features a important loyalty rewards program. The web site facilitates direct-to-consumer gross sales and features a personal portal for wholesaler, distributor, and retailer gross sales. The Company's targets via the web site are to (i) facilitate preliminary D2C gross sales progress, and (ii) to acquire actionable knowledge about this rising shopper market which shall be utilized to refine ongoing advertising and gross sales ways. Specifically, the Company is concentrated on the customers' skill to expertise the product rapidly, whereas capturing upsell alternatives to maximise Average Order Value (AOV) and Lifetime Value (LTV), two key ecommerce metrics.(2) Position for International Growth – Building upon earlier gross sales in Switzerland, Hempshire will deal with increasing its presence in Europe via its current worldwide distribution relationships. Hempshire will proceed with its preliminary goal of reaching first mover benefit throughout the big European and EU markets.(3) White Label and Partnerships – Hempshire will proceed to construct out its white labelling and contract manufacturing collaborations by pursuing partnerships with well-known manufacturers and choose artists and celebrities. The Company believes that its inside advertising and branding experience, together with its skill to formulate prime quality smokable alternate options, will entice these alternatives.(4) Position Production Capabilities to Scale Quickly and Profitably – The Company will focus on increasing its provide chain community, changing into incrementally targeted on demand-driven planning. Hempshire will search to adequately provide its progress plan with out over-extending stock ranges to keep up optimum use of money. Hempshire administration believes that the Company will have the ability to additional enhance margins via economies of scale.Hempshire believes it has established the inspiration and infrastructure to pursue its long-term imaginative and prescient of changing into a worldwide chief within the non-tobacco and non-nicotine smokable alternate options market. Martin Marion, Hempshire's President and CEO, said, "In my greater than 35 years creating technique and directing advertising applications for a few of the largest manufacturers on the earth, I've solely seen a handful that have been really class disruptive and backed by a essentially superior product that has the potential to de-position a multi-billion-dollar {industry}. MOUNTAIN Smokes has the power to attain aggressive business dominance and concurrently create a happier and more healthy world. This mixture permits us to scale considerably by outsmarting and de-positioning our opponents, not out-spending them."
About Hempshire
Incorporated in 2019, Hempshire formulates and markets its personal proprietary manufacturers beneath the MOUNTAIN® Smokes model title, together with MOUNTAIN® Originals cannabidiol hemp smokes ("Hemp Smokes") with <0.3% THC, and MOUNTAIN® Zeros Hemp Smokes with non-detectible, <0.0001% THC, and has extra proprietary manufacturers beneath growth. Hempshire additionally presents personal white-labeling providers and contract manufacturing providers, via its companions, for important non-owned Hemp Smoke manufacturers within the United States and internationally.Information in regards to the Company's MOUNTAIN® Smokes line of Hemp Smokes might be discovered on the Company's ecommerce web site at https://mountainsmokes.com.
Reader Advisory
Neither TSX Venture Exchange nor its Regulation Services Provider (as that time period is outlined in insurance policies of the TSX Venture Exchange) accepts duty for the adequacy or accuracy of this launch.Forward-Looking Statements This information launch comprises forward-looking statements and forward-looking info throughout the that means of relevant securities legal guidelines. The use of any of the phrases "count on", "anticipate", "proceed", "estimate", "goal", "ongoing", "might", "will", "mission", "ought to", "imagine", "plans", "intends" and related expressions are supposed to determine forward-looking info or statements. More notably, and with out limitation, this information launch comprises forward-looking statements and knowledge regarding Hempshire's enterprise, methods, expectations, deliberate operations and future actions and Hempshire's intention and talent to develop its enterprise, operations and product choices via ecommerce, B2B gross sales and bodily retailers, together with establishing model consciousness within the US and internationally and growing white labeling and contract manufacturing collaborations. The forward-looking statements and knowledge are primarily based on sure key expectations and assumptions made by Hempshire, together with expectations and assumptions regarding: the securities markets and common enterprise and financial circumstances, together with the continuing impression of COVID-19; the long run operations of, and transactions accomplished by, Hempshire, together with its skill to efficiently implement its progress methods and marketing strategy; ongoing skill to conduct enterprise within the regulatory environments through which Hempshire operates and will function sooner or later; and relevant legal guidelines not altering in a fashion that's unfavorable to Hempshire. Readers are cautioned that the foregoing record just isn't exhaustive of all components and assumptions which have been used. Although Hempshire believes that the expectations and assumptions on which such forward-looking statements and knowledge are primarily based are affordable, undue reliance shouldn't be positioned on the forward-looking statements and knowledge as a result of Hempshire may give no assurance that they are going to show to be right. By its nature, such forward-looking info is topic to inherent dangers and uncertainties, which might trigger the precise outcomes and expectations to vary materially from the anticipated outcomes or expectations expressed. Without limitation, these dangers and uncertainties embrace: dangers related to the hashish or hemp industries normally; the dimensions of the rising industrial hemp market; constraints on advertising merchandise; dangers inherent within the agricultural enterprise; actions and initiatives of federal and provincial governments and modifications to authorities insurance policies and the execution and impression of those actions, initiatives and insurance policies; Hempshire's interpretation of and modifications to federal and state legal guidelines pertaining to hemp; incorrect interpretation of the United States' Agricultural Improvement Act of 2018; worldwide regulatory dangers; uncertainty brought on by potential modifications to regulatory framework; regulatory approval and permits; environmental, well being and security legal guidelines; anti-money laundering legal guidelines and laws; banking issues; skill to entry private and non-private capital and banking providers; denial of deductibility of sure bills; legal responsibility for actions of staff, contractors and consultants; product viability; accuracy of high quality management methods; product remembers, product legal responsibility and product returns; optimistic assessments for THC or banned substances; provide danger; reliance on third occasion suppliers, service suppliers and distributors; failure of counter-parties to carry out contractual obligations; {industry} and intra-industry competitors; altering shopper preferences and buyer retention; unfavorable publicity or shopper notion; incapacity to maintain pricing fashions; reliance on key inputs; effectiveness and effectivity of promoting and promotional expenditures; retention and recruitment of key officers and staff; incapacity to resume materials leases; acquiring insurance coverage; administration of progress; dangers associated to buying corporations and getting into partnerships; infringement on mental property; incapacity to guard mental property; mental property claims; litigation; commerce secrets and techniques could also be tough to guard; knowledge safety breaches; world financial uncertainty; geo-political dangers; rising industries; restricted marketplace for securities; monetary reporting and public firm obligations; and different components extra totally described now and again within the experiences and filings made by Hempshire with securities regulatory authorities. In addition, Hempshire cautions that present world uncertainty with respect to the unfold of the COVID-19 virus and its impact on the broader world economic system might have a major destructive impact on Hempshire. While the exact impression of the COVID-19 virus on Hempshire stays unknown, speedy unfold of the COVID-19 virus might proceed to have a fabric antagonistic impact on world financial exercise, and will proceed to end in volatility and disruption to world provide chains, operations, mobility of individuals and the monetary markets, which might have an effect on rates of interest, credit score rankings, credit score danger, inflation, enterprise, monetary circumstances, outcomes of operations and different components related to Hempshire. Readers are cautioned that the assumptions used within the preparation of forward-looking info, though thought-about affordable on the time of preparation, might show to be imprecise. Actual outcomes, efficiency or achievement might differ materially from these expressed in, or implied by, these forward-looking statements and accordingly there might be no assurance that such expectations shall be realized. Hempshire undertakes no obligation to replace publicly or revise any forward-looking info, whether or not because of new info, future occasions or in any other case, besides as required by regulation. The forward-looking info contained herein is expressly certified by this cautionary assertion.Certain info contained herein has been obtained from printed sources ready by impartial {industry} analysts and third-party sources (together with {industry} publications, surveys and forecasts) ), together with sure experiences printed by Grand View Research, Inc. While such info is believed to be dependable for the needs used herein, Hempshire doesn't assume any duty for the accuracy of such info. Some of the sources cited on this information launch haven't consented to the inclusion of any knowledge from their experiences, nor has Hempshire sought their consent.
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1 Grand View Research, Inc. "Tobacco Market Size, Share & Trends Analysis Report By Product (Smokeless, Cigarettes, Cigar & Cigarillos, Next Generation Products, Waterpipes), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2022 - 2030."
2Grand View Research, Inc. "E-cigarette And Vape Market Size, Share & Trends Analysis Report By Product (Disposable, Rechargeable), By Distribution Channel (Online, Retail), By Region, And Segment Forecasts, 2022 - 2030."
3Grand View Research, Inc. "Cannabidiol Market Size, Share & Trends Analysis Report By Source Type (Hemp, Marijuana), By Distribution Channel (B2B, B2C), By End-use (Medical, Personal Use), By Region, And Segment Forecasts, 2022 - 2030."
SOURCE The Hempshire Group, Inc.
https://www.prnewswire.com/news-releases/hempshire-group-provides-corporate-overview-and-announces-strategic-initiatives-to-accelerate-growth-in-the-smokable-alternatives-market-301611594.html
