CBD product and probiotic supplement health and wellness company HempFusion Wellness Inc. took another step in greatly expanding its market share, purchasing Sagely Naturals, a Santa Monica, Calif.-based whole self wellness CBD maker with an extensive retail network.
The acquisition quickly follows the recent purchase of topical CBD body care-focused maker Apothecanna, the first topicals brand to achieve national market penetration and be awarded a federal trademark.
HempFusion has entered into a definitive agreement to acquire 100% interest in Sagely Enterprises Inc., the parent company of Sagely Naturals, a leader in premium CBD products with mass distribution in more than 14,000 retailers nationwide.
Founded in 2015 by Kerrigan Behrens and Kaley Nichol, Sagely Naturals was cited by Forbes in 2019 as the largest female-founded CBD wellness brand. Since its inception, the brand has been on a mission to naturally modernize the medicine cabinet with high-quality, accessible products that help women feel their best.
Significant Market Penetration
Sagely Naturals maintains a strong presence in the top drug retailers nationwide and is sold in key retailers such as CVS, Rite Aid, Albertsons, Sprouts, Nordstrom, and many other independent regional grocers and natural food stores, in addition to sagelynaturals.com. The company’s products are available in over 14,000 retail locations.
Sagely Naturals has consistently maintained the No. 1 position in CBD topicals, with 23% market share in the drug channel and 13.8% market share in the Multiple Outlet (MULO) channel, according to IRI data. Including ingestibles, Sagely Naturals is the No. 3 CBD brand and one of the only brands showing consistent growth in the all-time periods within the latest 52 weeks, according to IRI and MULO data. Out of the top 20 selling CBD SKUs in MULO, Sagely Naturals have five SKUs, with the Extra Strength Relief & Recovery Cream being the No. 1 selling SKU in chain drug.
Consumer insights have informed every aspect of Sagely Naturals’ product development, enabling it to meet consumer needs in an approachable and familiar way, and build a large and devoted community around the brand. Sagely Naturals has also caught the attention of A-list celebrities, including Cameron Diaz, Zoe Saldana and Molly Sims, as both consumers and investors.
- 2020 net revenue of over $4.19 million; and when combined with the closing of the APCNA Holdings LLC, Apothecanna transaction, will more than triple HempFusion’s 2020 revenue with significant expansion planned for 2021 and beyond.
- Immediate distribution to an additional 14,000+ stores, materially increasing HempFusion’s distribution footprint.
- Opportunity to introduce ingestible CBD products into Sagely Naturals’ 14,000+ stores.
- Complementary but not directly competing product offerings provide significant cross-platform opportunities through each of the companies’ respective distribution channels.
- Product efficiencies across the topicals line while delivering a near-term opportunity for further expansion into ingestible products supported by HempFusion’s proprietary formulations.
- HempFusion’s substantial investment into regulatory compliance will help solidify Sagely Naturals’ leadership position in the CBD industry.
- Sagely Naturals has been included on HempFusion’s Novel Foods Application Dossier with the United Kingdom’s Regulatory Food Safety Agency for future European expansion.
- Sagely Naturals’ C-Suite brings operational excellence including best-in-class marketing, proven innovation, and advantaged customer/channel relationships to HempFusion’s family of brands.
“Allowing people to do more of what they love has always been at the heart of our mission at Sagely Naturals,” said Sagely Naturals Behrens. “HempFusion approaches the industry the right way and possesses the resources required to help us significantly scale our business, increase our market share, and expand beyond our stronghold in the United States to international jurisdictions.”
Completion of the transaction is subject to a number of terms and conditions as set forth in the Merger Agreement. Upon completion of the transaction, Sagely Naturals will be a wholly-owned subsidiary of HempFusion, with Behrens and Nichol remaining as co-CEOs of Sagely Naturals.