Flora Growth Corp. (NASDAQ:FLGC) confirmed Tuesday that its Vessel brand has signed a distribution agreement with Florida-based Speedy Distribution, one of JustCBD’s core partners. The news comes on the heels of Flora's JustCBD acquisition for $16.0 million in cash and 9.5 million in shares.
This agreement represents Vessel’s first entry into traditional smoke shop channels, a category that offers promising growth for the brand over the short term. The initial product offering will include some of the highest demand SKUs from its vape and dry herb categories. Looking forward, Vessel will continue to innovate and design new products and accessories specifically for this newly formed channel partnership.
“We are excited to bring the Vessel product offering to one of our core distribution partners in Speedy,” commented Hussein Rakine, JustCBD CEO. “The Vessel team designs excellent customer experiences, and whether through e-commerce or traditional wholesale, the products are always well received by customers. We see this agreement as the first of many where we leverage JustCBD’s existing distribution network and Flora’s diverse product portfolio to amplify growth for our combined Company.”
Over the last 15 years, Speedy has grown into one of the leading smoke shop distributors in the U.S., servicing over 1,000 stores with thousands of smoking products, accessories and novelties. With over 20,000 sq. feet of warehouse space, they have one of the largest cash-and-carry locations in South Florida that is stocked with the newest smoking products and accessories.
JustCBD Acquisition
- Flora expects JustCBD’s financial performance to immediately contribute to Flora’s 2022 revenues and earnings.
- The company intends to leverage synergies between its existing brand portfolio, including Vessel, Tonino Lamborghini, and Mind Naturals, with JustCBD’s extensive U.S. distribution network to further amplify revenue growth for these brands.
- With the support of Flora’s strong balance sheet, we believe JustCBD is now positioned to expand into international markets where CBD products are permissible, including Germany, Mexico, and Colombia.
- JustCBD’s database of over 300,000 customers increases Flora’s existing customer base to over 500,000 customers.
- Members of the JustCBD operations team are expected to join the Flora team as integral leaders of Flora’s U.S. expansion strategy. This includes JustCBD’s CEO Hussein Rakine, who was named to Forbes’ 2022 list of 30 Under 30 list for retail and e-commerce.
