“This just made so much sense,” Charlotte’s Web CEO Deanie Elsner told Hemp Grower and Cannabis Business Times. “We’re like two distinct puzzle pieces that now fit perfectly together as one.”
Charlotte’s Web has been conducting business with Abacus for the past five years, Elsner said, with Charlotte’s Web selling Abacus its proprietary full-spectrum hemp-derived CBD for the company’s product formulations.
“I would say our relationship has been extremely collegial and one of mutual respect for years,” Elsner said. “Abacus’ leadership and innovation in topicals complements Charlotte’s Web’s number one market position in ingestibles.”
The Charlotte’s Web team has also been impressed with Abacus’ science-driven approach to its business, which Elsner said mirrors Charlotte’s Web’s commitment to science.
Now, under the agreement, Charlotte’s Web has acquired all the issued and outstanding subordinate voting shares of Abacus, which ultimately grants Charlotte’s Web distribution through more than 21,000 retailers.
Abacus’ consumer brands, CBD MEDIC and Harmony Hemp, as well as the company’s CBD CLINIC brand for professional practitioners, now join the Charlotte’s Web family of brands, and product cross-selling opportunities are available through each company’s distribution network.
“This acquisition opens the door for reaching thousands of health care and wellness practitioners, which we believe is a vital audience to engage, educate and support,” Elsner said. “This move catalyzes our company to be global in reach. We want the quality, efficacy and consistency of our full portfolio of products to globally reach those in need of the healing power of botanicals. This deal does just that.”
Beginning in July, multiple Abacus topical products will be available through Charlotte’s Web’s Direct to the Consumer (DTC) ecommerce platform.
“Now that we are one company and Abacus’ brands–CBD MEDIC, CBD CLINIC and Harmony Hemp–have joined the Charlotte’s Web family of brands, we can deliver an attractive and trustworthy portfolio of products DTC and to a wide spectrum of retail customers,” Elsner said.
Abacus CEO Perry Antelman has joined Charlotte’s Web as executive vice president and president of topicals, and Elsner said the company has launched a 100-Day Integration Plan to merge the two brands.
“We still have a lot of work to do to fully integrate the Abacus brands into Charlotte’s Web and look for opportunities to be more efficient and to improve—and that means being willing and open to change in the dynamic CBD market,” she said.