Charlotte’s Web Hemp (CNQ: CWEB), a cannabis company based in Colorado, started out as a niche company in 2011 but has continued to grow steadily over the past eight years to be an internationally recognized brand. As it strives to leave its mark on the cannabis industry and grab more of the market, it is showing the strength of its leadership and is making progress that has led to it controlling a substantially larger portion of the market. This is just one step in the company’s plan and investment analysts are starting to take notice.
The company currently cultivates over 300 acres of hemp in Colorado, Kentucky and Oregon. These crops are able to produce around 675,000 pounds of hemp and, as the 2018 Farm Bill starts to develop, Charlotte’s Web is in a position to make use of every bit of it. It currently has distribution agreements with 3,700 stores – both online and brick-and-mortar – and continues to seal more deals.
The company is expected to reach revenues as high as $167.8 million this year, and as much as $312.2 million a year later. Compared to the $70.5 million in revenue it saw last year, these increases are significant and easily within the reach of Charlotte’s Web’s current capabilities.
According to Scott Fortune, an analyst with Roth Capital Partners, Charlotte’s Web is a “market leader in the fast-growing hemp extract cannabidiol (CBD) market with high-quality supply, a recognized brand and significant new retail verticals to begin selling into the mass market.” He adds that the company’s extensive experience producing quality hemp is “enabling a seed-to-sale positioning among consumers with a reputation for quality.”
Fortune also believes that the company is a perfect takeout target for other firms, such as a Canadian limited partnership or possibly a consumer packaged goods company. He asserts, “We believe the potential large CBD market opportunity is experiencing rapid growth as regulatory illegalities are removed and consumer acceptance of hemp-derived CBD expands. Thus, we think Charlotte’s Web offers an attractive Buy.”