19 Nov 2020 07:00
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information for the purposes of Article 7 under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
19 November 2020
Zoetic International plc
("Zoetic" or the "Company" or the "Group")
Trading Update
Zoetic International PLC (LSE: ZOE), London-listed international CBD company, is pleased to provide the following update on its operations.
Highlights
· | Positive response to Chill products following commencement of US roll out with new distributor. |
· | Continued uplift in online sales month to month for the Chill brand. |
· | Improvements made to popular CBD gummies as Food Standards Agency novel foods submission prepared. |
· | Zoetic's Zesty Blood Orange CBD Oil highly commended in GQ's Grooming Awards 2021. |
Promising response to Chill products under new distribution agreement
Following previous announcements that Zoetic had secured a new US distribution agreement (the "Agreement"), the Company is happy to report that the initial roll out of its products is ahead of schedule and has been met with an overwhelmingly positive response.
The Agreement, which concerns the sale of Zoetic's Chill brand of tobacco alternative CBD products, has already seen distribution begin across 125 new US stores in the first week alone. Whilst the Company is still at an early stage in the execution of a broader roll out, the speed and extent of distribution has exceeded expectations and stands the Company in good stead to beat launch targets should this pace continue.
The Company looks forward to reporting on distribution sales numbers once they are suitably established, and fully anticipates that retailers will place repeat orders in the coming months.
As previously reported with Zoetic online sales, Chills online orders are showing very positive results. New orders were up 190% in October, compared to September, which gives strong credence to the fact that the brand is really starting to catch traction online.
Trevor Taylor, Co-CEO of Zoetic, commented, "As we watch and learn from our distribution partners, we couldn't be any happier with the progress of this further roll out. We now seek to accelerate our distribution plans and look forward to reporting on the continued success of the Chill brand in the US and across the world."
Improvements made to Chill brand CBD Gummies as preparations made for Food Standards Agency novel foods application
The Company is pleased to report that constructive progress has been made in the preparation of its novel foods application to the UK Food Standards Agency (the "FSA"). Following the FSA announcement that CBD companies must have a validated novel food application for each of their products, Zoetic is making good progress towards meeting this regulatory obligation and anticipates doing so well ahead of the deadline on 31 March 2021.
Working closely with the dedicated CBD division of leading international law firm CMS, the Company intends to use this opportunity to demonstrate its expertise in the field of compliance, thus building on its competitive advantage, whilst recognising the opportunities that may arise should competitors fail to meet the regulatory hurdle, potentially causing their products to be withdrawn from the market.
As Zoetic moves towards the final stages of the application process, the Company is focusing its efforts on continuing to source organic ingredients for all of its branded products. Zoetic is continuously striving to use the most sustainable and, where possible, organic ingredients for all of its products, with transparent and honest ingredients lists.
Antonio Russo, Co-CEO of Zoetic, commented, "As we move towards the submission of a novel foods application to the FSA, we are pleased with the progress that has been made. This process has enabled us to further refine and improve our products, and the interest shown in them throughout demonstrates their popularity amongst consumers. We look forward to restocking our full range of even better tasting gummies in the very near future."
Zoetic CBD oil highly commended in the 2021 GQ Grooming Awards
Zoetic is delighted to have seen its products recognised for their quality in this year's GQ Grooming Awards. Amidst stiff competition from category stalwarts, Dyson and L'Occitane, Zoetic's blood orange CBD oil (1000mg) was "highly commended" by judges for its properties as a market-leading sleep aid.
As a globally renowned lifestyle magazine, GQ has a current worldwide print and digital readership of over 50 million monthly readers and Zoetic's appearance in the publication's grooming awards results is anticipated to generate new interest in the Company's broader range of premium CBD products.
Antonio Russo, Co-CEO of Zoetic, commented, "We are thrilled that GQ's panel of industry expert judges has chosen to recognise Zoetic's blood orange CBD oil as one of the leading sleep aid products. This accolade stands testament to the efficacy of our CBD oils and we will continue to develop and produce high calibre products that deliver great results for consumers."
Enquiries
Zoetic International plc c/o IFC Advisory
Trevor Taylor, Co-CEO
Allenby Capital Limited (Financial Adviser and Broker) +44 (0) 20 3328 5656
Nick Harriss (Corporate Finance)
Nick Naylor (Corporate Finance)
Guy McDougall (Equity Sales)
IFC Advisory Ltd (Financial PR and IR) +44 (0) 20 3934 6630
Tim Metcalfe
Graham Herring
Florence Chandler