CV Sciences (OTCMKTS:CVSI) is reaping the benefits of the 2018 Farm Bill which legalized the cultivation and processing of hemp in the US. Notably, the proprietary brand, PlusCBD Oil™, did well by the close of 2018. Interestingly, the performance is getting stronger as the brand expands its presence in various retail stores. By end of 2018, only 2,238 retail stores stocked the PlusCBD Oil™ branded products. Three months later, the store count was 3,308 representing a 48% jump.
The 2018 Farm Bill was a game changer
Following the great milestones, the company is working on a plan to expand the PlusCBD Oil™ brand into Food, Drug and Mass (FDM) channel. The plan includes approaching major national retailors for distribution partnership. The company expects to further add to its market share and strengthen its balance sheet.
Joseph Dowling, CEO of CV Sciences, believes that the Farm Bill is an invitation to bolster their operational capacity. This is because the legislation opened up a new segment of the cannabis market and which has the potential to further grow their revenue. As per the CEO, the hemp-based CBD market is growing at an encouraging pace and that demand is fast rising.
CV Sciences reported record sales in the last earnings results
To be sure, the growth in demand is fueling a growth in revenue for cannabis to record levels. For CV Sciences, the fiscal year-end 2018 earnings results showed that the company made sales worth $48.2 million. This represents a 133% growth compared to the previous fiscal year. Over the past two years, the company has recorded a growth in sales quarter by quarter. However, the passing of the 2018 Farm Bill saw the sales go up 3.8x by Q4 FY2018.
Besides the legislation, the company said the strong growth in sales for the quarter came from a strengthened brand awareness. Notably, the awareness was driven by popular products like PlusCBD Gold. Also, the company benefited from the aggressive expansion of its retail distribution segment where Q4 alone saw the addition of 145 retail stores. Therefore, the expansion into the FDM channel will further grow the brand by opening up new market opportunities.