Canzon (TASE: CNZN), which markets CBD-based (the cannabis ingredient that has no psychoactive influence) branded products in Europe, mainly through online marketing, has today reported a major deal worth about NIS 6 million annually with the German distribution company Lykos Verde. As part of the deal, the German company will receive exclusivity on the distribution of the Canzon brand in about 7,000 points of sale in Germany. The operations will be conducted through its Luxembourg based subsidiary Canzon Europe.
The German distributor will distribute Canzon's products to about 3,000 pharmacies in Germany and about 1,000 organic food stores in Germany. In the second stage of the deal, Canzon's relevant products will be distributed to about 3,000 sports stores and fitness clubs.
Lykos Verde is a German distributor for CBD products in the areas of cosmetics, suuplements and animal treats, which is operating out of Frankfurt. The growing company is setting up an international distribution network with carefully selected partners.
The deal was completed through mediation by Yuval Soiref, a veteran entrepreneur in the international cannabis sector and the owner PharmaCann International, which serves as an external consultant to Canzon Europe. Soiref said: This is the first deal of its kind in Germany for the company, which I recently joined. At the same time, we are promoting similar deals in other countries."
Canzon founder and chairman Alon Carmeli said, "We are developing a leading brand in the CBD industry, which is a growing industry that is developing rapidly. The deal will allow Canzon to gain a first foothold in physical stores in Germany and thus position itself as a breakthrough company in the sector."
Lykos Verde Managing Director Anna-Sophia Kouparanis added, "We have been very impressed with the quality of Canzon's products as well as with the premium innovative design of the products. I believe that the company can bring something significantly new to the German market and that the initial scale of activities that we have agreed upon will continue to grow."
Through its European subsidiary, 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 company has 24 products in eight categories for cosmetics and paramedical use (acne, psoriasis, day and night anti aging creams, snack bars for treating problems with joints for dogs, and more).
Published by Globes, Israel business news - en.globes.co.il - on July 5, 2020
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