Canzon (TASE: CNZN), which markets CBD-based (the cannabis ingredient that has no psychoactive influence) products in Europe, mainly through online marketing, has reported that its second-tier subsidiary Canzon Europe has signed a distribution agreement in Bulgaria. Bulgarian distributor CAN Health OOD will distribute Canzon's products to hundreds of pharmacies in Bulgaria. As part of this agreement, the distributor has been given up to five years exclusivity to distribute the company's products in Bulgaria, subject to meeting sales targets of at least 15,000 of the company's products during the period, which reflects, on the assumption of meeting the exclusivity terms by the distributor, estimated revenue of at least €450,000 for Canzon Europe.
As part of the agreement, and in order to retain exclusivity, the quantity of products that the Bulgarian distributor must buy from Canzon Europe each year, will increase from year to year. This step towards distributing Canzon Europe's products through partners, and not only over the Internet, is part of the company's strategy to develop the Canzon brand by using additional marketing elements.
Canzon founder and chairman Alon Carmeli said, "The CBD industry is a growing industry that is developing rapidly and it is important that we will develop together with it and expand accordingly. The deal that our second-tier subsidiary Canzon Europe has signed will allow from now the physical presence of our products in hundreds of points-of-sale throughout Bulgaria, something that will help us significantly in positioning the company as a leader in the industry."
Canzon develops, through its European subsidiary, product brands based on CBD, for online marketing. Canzon develops a line of cannabis-based products made in European laboratories, possessing the strictest standards required, which do not require a medical prescription. The products are designed for use as cosmetics and paramedical use (acne, psoriasis, treating problems with joints for dogs, and more).
Published by Globes, Israel business news - en.globes.co.il - on June 28, 2020
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