With intent to return to positive cash flow in 2022, Charlotte’s Web Holdings has completed a reorganization to drive agility and growth as the company prepares to launch new products, channels and markets. The changes follow the company’s new leadership announcement issued on Dec. 16, 2021.
“I’m pleased to share a corporate update on recent actions taken to position the business for long-term growth and profitability,” said Jacques Tortoroli, CEO of Charlotte’s Web. “Structurally, we’ve flattened the organization to reengage the bold, entrepreneurial culture that Charlotte’s Web was founded upon. Strategically, we are leveraging our intellectual property and brand leadership to enter new product categories, markets and partnerships to drive our topline growth. Financially, we have moved to reduce our costs and tie compensation more to equity growth to better align with shareholder interests and accelerate our return to positive cash flow in 2022. We have ceased equity distributions through our at-the-market equity program established last June. I am listening to our investors and grateful for their continued support.”
Reorganization — Charlotte’s Web has transitioned to a horizontal organizational structure to empower employees with increased decision making and accountability. This enables more efficient collaboration and creativity, driving faster response times and better customer service. The simplified structure also reduces costs and aligns employees more closely with business goals.
Mission and culture — Charlotte’s Web began as a mission of compassion before it was a business, with seven brothers helping a little girl in need, and subsequently helping thousands of others that would follow. This was Charlotte’s Web’s founding corporate culture and mission to improve health through the healing powers of botanicals with compassion and science, benefitting the planet and all who live upon it. The reorganization marks a return to the founding principles of a passionate, fast-moving and entrepreneurial spirit.
“The Charlotte’s Web origins story, leading brand recognition and trust, are unique in the CBD category,” said Jared Stanley, chief cultivation & innovation officer. “From this foundation we have built valuable thought leadership, science and optionality into our business, presenting substantial opportunities to be unlocked at home and abroad. We are eager to lead this category with a revitalized approach and renewed energy.”
Revenue expansion — Charlotte’s Web is a market share leader in segments totaling approximately $3 billion in sales in 2021 according to the Brightfield Group. The company aims to continue incremental market share gains in 2022. On the regulatory front, the passing of California Assembly Bill 45 in October 2021 has opened new retail doors for Charlotte’s Web within the state as well as with new national retail partners. The mass retail channel continues to await further regulatory progress at the federal level with hearings on House of Representatives Bill 841 anticipated early this year. In the interim, topline growth initiatives for 2022 will include a new focus on ecommerce consumer experience, social media marketing strategies and expanding access to hemp products to audiences who can most directly benefit from them. New product launches are planned with innovative formulas, formats and categories. And new distribution partner discussions are underway both domestically and internationally.
“We are accelerating our global opportunity in parallel with the U.S. market,” added Wes Booysen, chief financial & operating officer. “Our executive team has substantial international experience, and we have started the year with discussions underway in Canada, Israel, U.K. and the E.U. for asset-light models through strategic partnerships.”
Charlotte’s Web Holdings, a Certified B Corporation headquartered in Denver, provides innovative hemp extract wellness products under a family of brands, which includes Charlotte’s Web, CBD Medic, CBD Clinic and Harmony Hemp. Charlotte’s Web products are distributed to more than 14,000 retail doors, 8,000 health care practitioners and online through the company’s website.