Marijuana is back in the headlines, underscored by what most are declaring a victory by Democrat Joe Biden to become the next U.S. president. Biden and the progressive views of his party are expected to be the newest catalyst for the emerging legal cannabis market. While that puts a spotlight on the U.S. market, savvy investors are looking at the global opportunity, particularly the less-controversial cannabidiol (CBD) oil and CBD consumer health market that ResearchAndMarkets estimates to reach $123.2 billion by 2027.
CBD is a non-psychoactive compound of cannabis sativa trumpeted for a litany of health and wellness benefits as an alternative to traditional medicines that are often unnatural and ineffective while saddled with negative side effects. Backed by some recent clinical data and anecdotal evidence accumulated through hundreds of centuries of use throughout the world, CBD is found in many forms (creams, oils, edibles, drinks, lotions, etc.) to treat everything from wrinkles to seizures.
On Monday, Nass Valley Gateway (CSE:NVG) (OTCPK:NSVGF) took a major step in getting its portfolio of CBD consumer goods in the hands of people the world over with the full line of its “Nass Valley Gardens” products becoming available on Alibaba.com.
Nass Valley manufactures and sells full and broad spectrum, all-natural, GMO-free CBD products for humans and pets, including pet treats and oil, a selection of CBD gummies (Nighttime, Immune Boost and Wellness) and a variety of lotions, oils and capsules in a wide range of dosages. The company differentiates itself by supporting its products with data from over 300 analytic tests, providing confidence to the quality of the products that is all-too-often lacking in competitor’s products.
Available to billions of consumers across hundreds of countries, Alibaba is the world’s largest e-commerce marketplace. For the 12-month period ended September 30, 2020, Alibaba had 757 million annual active consumers on its China retail marketplaces. Getting into the Alibaba marketplace is no easy feat, with the rigorous vetting process of acceptance. Add to it that Nass Valley is one of the first CBD companies to get accepted into the Alibaba ecosystem further speaks to the first mover advantage the company is getting with this massive new sales channel.
Most may think of Alibaba.com for its reach to consumers (and rightfully so), but the platform is also the largest business-to-business (B2B) marketplace in the world. This is of great value to Nass Valley due to the B2B distribution channel segment of the CBD market accounting for the highest revenue share in 2019. Analysts at MarketsAndResearch attributed the growth to demand of CBD oil for a number of applications, such as cosmetics and foods.
That is right in the wheelhouse of Nass Valley considering its manufacturing capacity and a partnership with New Hope Labs that combines about 32,000 acres of land for growing hemp for CBD production in Colorado and Montana.
“Alibaba.com’s B2B platform is clearly where Nass Valley needs to have a presence considering the design and flexibility of our supply chain for both large and small B2B customers,” said Brandon Gil, Nass Valley’s Director of E-Commerce, in today’s news release. “We will utilize the strength and reach of Alibaba.com to help customers access Nass Valley Gardens’ health and wellness products,” he added.
Alibaba.com joins Nass Valley’s current revenue streams consisting of affiliate, wholesale, direct response, and digital sales channels.
This new global market platform and partnership with the world’s largest business-to-business marketplace positions Nass Valley to take one step closer to realizing its projected $36 million in revenues in the next 12 months. With shares up over 200% from September amid growing investor interest, this quiet little company is beginning to shine heading into a transformational 2021.
