The development comes as Bod Australia’s proprietary CBD and hemp oil extracts have received the self-affirmed Generally Recognised as Safe (GRAS) status from the US FDA.
Achieving the status means that the ingredients could be used in food supplement and beverages. Having spent nine months of preparation, Bod Australia is also the first ASX-listed company to attain the status.
The CBD and hemp oil extracts, which are patent pending, will be incorporated into 10 new products, including oil and soft gel capsule formats.
The products will be sold under H&H Group’s ‘CBII’ brand and will be available in the US via e-commerce as well as offline retail.
The ‘CBII’ brand is already retailing in the UK since last December. It features a range of CBD oil with CBD levels at 50mg per ml, 20mg per ml, and 10mg per ml.
The brand also includes capsules that combine CBD with other ingredients such as vitamin B3, C, D, and zinc.
“The US is a large and important market for us, and we look forward to our expansion into this market.
“We expect to launch approximately 10 new products under H&H Group brands with production commencing and first revenues materialising from initial purchase orders in the coming months,” Bod Australia CEO Jo Patterson said.
The US’s CBD market, including topicals, supplements, pet products, and pharma products, is forecast to hit US$18bn by 2025, according to cannabis market research firm BDS Analytics.
Aside from the US, Bod Australia and H&H Group also intend to enter France, Italy, and the Netherlands for the sale of CBD and hemp products.
H&H is Bod’s exclusive global partner for the distribution of CBD healthcare products.
In fact, the partnership with H&H had contributed to over 75% of its product sales, Bod said in its FY2020 financial results.
Earlier in March, the two have launched a series of hemp-based soft-gel capsule supplements and skincare products in Australia’s Chemist Warehouse, Coles, and Priceline Pharmacy.
Bod also expressed its interest in the domestic Australian CBD market after the Therapeutic Goods Administration (TGA) announced its interim decision to down-schedule CBD to a schedule 3 substance.