CBD Brand with a 41% Recurring Customer Rate

Not Disclosed, FL

Relocatable


Asking Price: Annual Revenue:
$5,000,000 $4,493,090

Retail: E-Commerce, Retail Websites


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RE: CBD Brand with a 41% Recurring Customer Rate Broker: Ron Matheson
Owner Financing is Available!
Negotiable

Quick Facts

Asking Price: $5,000,000
Annual Revenue: $4,493,090
Net Profit: Not Disclosed
Cash Flow: $904,580
Total Debt: Not Disclosed
FF&E: Not Disclosed
Real Estate: Not Disclosed
Year Established: 2016
Employees: 25
BBN Listing #: 58359418
Broker Reference #: WC2305

Email or Print Listing

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Business Overview:

Website Closers® presents a relaxing and healing eCommerce Brand that has become a leader in the field of high potency CBD Products and Natural Supplements. This leadership has been corroborated by an amazing 41% Return Customer Rate. This cutting-edge company has brought in skyrocketing sales for its exclusive, hemp derived products, including topicals and skin care, tinctures and oils, supplements, foods, and even specialized pet products.

The brand has done exceptionally well on both direct-to-consumer sales and B2B partnerships, with powerful recurring revenue rates in each category. Carrying more than 250 SKUs, this brand has an average order value of $85 for its B2C orders. The average order value on B2B sales is a whopping $5,000.

Successfully leveraging organic growth through social media, this company has a growing Instagram account. They also receive more than 30,000 visitors per month to their website, where the bulk of sales are completed. The brand has also started marketing new SKUs on Amazon, where sales have risen to 10% of their overall orders. Expanding this storefront through adding products and entering the international market, could drive monumental growth.

The brand has developed several top selling CBD products including gummies, which make up 40% of total sales, and tincture oils, which make up another 30%. These products have attracted overwhelmingly positive reviews from customers, who are particularly eager to cite the health benefits and pain relief they’ve experienced while using these products.

While the brand has experienced massive growth over the past 5 years, there remains plenty of additional opportunities to scale. The company is poised to launch a new subscription-based/recurring revenue model in May of 2021, which is expected to increase sales dramatically. Continued product innovation also offers additional paths to expand the customer base, along with new PPC strategies to build awareness and growth.

This family-owned company was launched in 2016 by a team with a passion for cultivating the best quality CBD on the market. The company was launched just as cannabis products were becoming increasingly legal across the United States. With medical use of cannabis now legal in 36 states, and recreational use of cannabis fully legalized in 17 states, this business has grown swiftly to lead this booming market. CBD products, which are known to help customers feel relief from ailments like anxiety, depression, chronic pain, and migraines without the high that comes from marijuana use, have become enormously popular for their health benefits.

Studies indicate that 12% of Americans are active cannabis users while 14% use CBD products, and that support for legal marijuana is now at an all-time high of 68%. This translates into a lot of sales. Nationwide, cannabis sales increased 67% in 2020, alone and the U.S. cannabis industry is worth an estimated $61 billion, while CBD products have brought in $2.8 billion.

This brand has focused on hemp derived products that include oils, foods, and topicals, with Co2 extracted CBD Crude Oil grown from hemp but containing less than 0.3% THC, the component that causes the cannabis high. While their hemp originates from California and Oregon, this company has created proprietary products that are sold under their own brand. The company emphasizes that they cultivate the highest potency CBD goods on the market today by ensuring that they never overheat or overprocess their raw crops. This helps them make products that are as close to the hemp plant’s array of cannabinoids as possible. It also makes their products highly unique, offering a level of benefits that cannot be purchased elsewhere.

With several hundred specialized SKUs that include 40 parent SKUs, the brand has developed a following with highly desirable demographics. About 20% of their customers are in the prime buying age group of 35-44, while an additional 15% are between the ages of 18-24 and 45-54. There is close to an even split along genders, with 56% of customers being men and 44% women.

About 90% of sales are completed through the brand’s website, although sales on Amazon are rising fast. The company has used Amazon to launch new non-CBD products that complement their core CBD SKUs. One new product in particular, featuring highly beneficial mushroom powders, has gained considerable traction on Amazon. Meanwhile, natural health supplement offerings such as Green Coffee Powder and Barley Grass are helping to generate spillover traffic to the brand’s own website.

Sales remain steady year-round, and the brand now ships a minimum of 70 orders per day. All orders are shipped from the company’s 5,000 square foot warehouse in California, where they stock about 180 days’ worth of inventory.

The company carries a fast-growing B2B base, with 150 wholesale customers, and 500 qualified leads for new prospective customers. To facilitate that growth, the company is now optimizing a new Wholesale Landing Page on their website, developing a new Wholesale Catalog Landing Page, and enhancing its email marketing campaigns. This is a particularly effective channel as the company has accrued an impressive email database of 25,000 B2C customers, 10,000 private label subscribers, and 12,000 retail contacts, this number is ever-growing as the brand continues their engagement efforts. Their successful email marketing practices have provided 40% of online sales to date.

A considerable amount of their massive growth has been earned organically through social media, which in the first quarter of 2021 yielded an estimated 39% increase in engagement across all active channels. The brand also leverages a powerful SEO optimization strategy with a popular, informative blog that has helped to bring more than 30,000 visitors to the website each month.

With such enormous success within just five years, this company is expected to continue its strong growth patterns. There are a couple of different ways this business can scale. Continued research and development to develop unique formulations for topicals and food products will boost sales by expanding the product line. The company now uses its 200 most loyal customers as a focus group prior to launching anything new to be certain they are offering something that’s going to be successful.

The brand could also be expanded into the retail space of Hemp businesses, and the customer base could grow significantly by posting videos on sites like YouTube and Vimeo, as well as by introducing podcasts as well.

The company could also employ PPC ads with a focus on search and social media outreach as an alternative marketing source. The company has so far only done a minimal amount of PPC marketing. The company could also start attending tradeshows, which represent a strong growth opportunity, particularly toward the B2B side of the business.

The owner now spends about 5 hours be week on this business, with a focus on eCommerce and business development. The owner has a dedicated team in place that includes a vice president of production who oversees the development and manufacturing of their products. There is also a vice president of sales who manages daily sales activities, a vice president of marketing, a vice president of operations, a director of quality assurance, a logistics manager, and a content strategy manager. The company also employs freelancers to oversee web development, eCommerce coordination and visual designs for social media and listings.

As the cannabis industry continues to see exponential growth, innovative CBD products like these are discovering a massive customer base for their SKUs. Which is exactly how this company has grown so successfully. This is an outstanding opportunity to own a business that has not only been riding the wave of popularity for CBD products, but has

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Additional Details:

  • The property is owned.
  • The owner is not willing to train/assist the new owner.
  • This is not a homebased business opportunity.
  • This is not a franchise resale opportunity.

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