NEW YORK — Following Better Choice Company’s acquisition of Halo, Purely for Pets in December 2019, Better Choice on Feb. 10 announced its intention to form a joint venture with cbdMD, Inc. to develop a hemp based product under the Halo brand.
The joint venture’s main priority will be launching Halo Hemp, which will be Halo’s first line of CBD-based pet products. Halo Hemp will be manufactured by Better Choice but “powered by cbdMD,” meaning Better Choice will leverage cbdMD’s CBD supply to formulate and develop the products.
Better Choice and cbdMD will leverage both of their sales, marketing, digital and distribution capabilities to “maximize the economies of scale of the partnership,” they stated. Each company will own 50% stake in the joint venture.
“Better Choice’s entry into the hemp derived CBD pet market, through our brands, including recently acquired Halo, could be accelerated through a partnership with the cbdMD team. In doing so, the to-be-formed JV will benefit by integrating our sales capabilities into well-established distribution channels, which includes major retailers,” said Michael Young, chairman of Better Choice’s board.
“The CBD pet market is at the very early stages and there is more than enough room for several brands to become leaders in the marketplace. In working together, we can leverage each other’s strengths,” Young added.
The companies also said they intend to expand their respective hemp-based CBD pet brands under the joint venture. Currently, cbdMD offers a line of CBD-based tinctures, treats, chews, topicals and a CBD-infused peanut butter line for dogs.
“We are proud to have established a secure supply chain with dedicated, 2018 Farm Bill compliant, hemp farms and extraction facilities to ensure the highest quality and integrity of the raw materials we use,” said Martin Sumichrast, chairman and co-CEO of cbdMD.
We are also in the process of obtaining our NASC certification, which many larger retailers in the pet industry require for product placement. We believe this potential joint venture with Better Choice will help accelerate our goal of big box retail deployment,” Sumichrast continued.
Better Choice Company currently owns five other pet brands, including TruDog, TruCat, TruGold, Orapup and Rawgo!
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