CBD firm Cann Global targets NPD, Asian growth and substantial savings with Bio Health MoU

By Cheryl Tay contact

- Last updated on GMT

Cann's nutraceutical hemp products will be manufactured commercially at Bio Health's Sydney facilities, as part of a deal in which the firm will act as a contract manufacturer. ©Getty Images
Cann's nutraceutical hemp products will be manufactured commercially at Bio Health's Sydney facilities, as part of a deal in which the firm will act as a contract manufacturer. ©Getty Images

Related tags: Cbd, Nutraceutical, Australia

Australian company Cann Global says it will be able to bring forward its production schedule and cut costs after signing a memorandum of understanding (MoU) with Bio Health Pharmaceuticals.

Cann has moved the production schedule for its nutraceutical hemp food consumables and medical cannabis formulations forward to H1 2019, with the aim of attracting lucrative short-term revenue.

Bio Health will manufacture Cann's proprietary medical products and medical cannabis formulations. The MoU will facilitate Cann's higher production volumes for distribution in Australia and Asia.

This translates to immediate mass production of Cann's medical cannabis products under the Canntab and Pharmocann brands, as well as high volumes of co-branded Hemp Seed oil capsules and nutraceuticals under the Bio Health and VitaHemp banners.

The nutraceutical hemp products will be manufactured commercially at Bio Health's Sydney facilities, as part of a deal in which the firm will act as a contract manufacturer.

The MoU is also expected to result in multimillion-dollar savings in manufacturing costs for Cann, and to remove the possibility of a further one- to two-year delay normally needed to secure the relevant TGA and GMP licences typically required for new manufacturing facilities.

At the same time, there will be opportunities for both companies to explore collaborations with health food conglomerates, chemists, and supermarket food chains in Asia-Pacific.

Story behind the strategy

Cann Global's head of food production, Peter Edwards, met with Bio Health GM Samuel Heng at the latter's Sydney facility sometime ago, and both companies have been working closely since.

Speaking to NutraIngredients-Asia​, Cann Global MD Sholom Feldman said: "Bio Health has been producing our Hemp Oil Capsules from the beginning. Recently, the opportunity arose to take that relationship to the next level.

"After some formal meetings, where the Cann Global team received the grand tour of the facilities and was shown some of the rigorous paperwork that accompanied the high-quality production, an MoU was signed for us to work closer together, not only on the hemp foods side but also with the intent to produce medical-grade pharmaceuticals together at Bio Health’s GMP- and TGA-approved facilities."

At the moment, Cann produces hemp products free from THC, or containing below 0.3% THC (as permitted by Australian law for over-the-counter supplements). Coming under the VitaHemp banner, these consist of hemp flour, hemp protein, raw hemp seed oil, hulled hemp seeds, and hemp seed oil capsules.

The firm is looking to expand this product line to include more varieties of health supplements, though it declined to reveal more details in this area.

In addition, Cann Global has a joint venture with Israeli firm Pharmocann to produce their CBD skin care products, something Bio Health is able to do at its current facilities.

Area-specific plans

Outside of Australia, Cann has its eye on expansion in Asia, where it has prioritised more mature markets — namely, Japan, Hong Kong and South Korea.

Feldman said, "The company already has established contacts in these places, and they are vicinities where hemp products have a growing market demand.

"As demand grows in other areas, we will continue to pursue opportunities wherever we can help people to gain access to premium Australian-processed health products."

With regards to how Cann intends to differentiate itself from other companies producing hemp and CBD supplements, he said: "We have a high focus on Australian-grown products, though not exclusively among our various brands.

"The quality of our Australian processing for all our brands and the rigorous standards that we have in place ensure that we only supply top-quality products of the highest standards that appeal to a broad spectrum of clientele."

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