Charlotte's Web Holdings, Inc. and Tilray Brands, Inc. have entered into a strategic alliance that includes licensing, manufacturing, quality, marketing and distribution of Charlotte's Web CBD products in Canada.
For the first time, Canadians will have nationwide access to Charlotte's Web full-spectrum CBD products through Tilray's distribution network. Previously, Charlotte's Web hemp extract had only been available to Canadian families that qualified for a special access medical exemption through Health Canada.
"Charlotte's Web is thrilled to be partnering with Tilray, a respected global category captain,” said Charlotte’s Web CEO Jacques Tortoroli. “This underscores our strategic expansion into international markets with leading domestic partners by leveraging well-established infrastructure, co-production, and route-to-market capabilities. Our collective goal is to bring full-spectrum CBD wellness options to the Canadian market that will answer consumers' demand for safe, high quality, trusted CBD products."
Under the arrangement, Tilray will acquire and extract Charlotte's Web proprietary hemp biomass, harvested from Canadian-grown hemp cultivars, and will manufacture final product at its production facilities in Canada. Manufacturing by Tilray will follow the same proprietary methods and specifications Charlotte's Web employs in the U.S. Tilray will manage distribution through Health Canada's regulated channels across Canada.
First availability is expected in early 2023 for hemp extract oil tinctures, followed by gummies and topicals. Charlotte's Web products will be available through traditional Canadian cannabis sales channels.
Establishing its supply chain and distribution in Canada also prepares Charlotte’s Web for the contemplated introduction of natural health products regulations and potential ability to sell CBD products through traditional pharmacies in Canada.
"This is an exciting time for the Canadian CBD market as more Canadians seek natural wellness options,” said Blair MacNeil, president, Canada at Tilray. “Partnering with Charlotte's Web, the market leading CBD brand, opens new opportunities for Tilray Brands in Canada as we evolve our distribution channels from the dispensary model to natural wellness retail channels and eventually mass retail opportunities. We look forward to launching Charlotte's Web's trusted, certified, and tested products across Canada in 2023."