Flora Growth to Partner with Althea Group Holdings on Vessel Distribution in UK
Flora Growth Corp. (NASDAQ: FLGC) announces an exclusive distribution agreement with Althea Group Holdings for Vessel brands in the UK, targeting the multi-billion-dollar vape pen and dry herb vaporisers market. AGH becomes the sole supplier of Vessel hardware and smoking accessories in the UK medical market, aiming to drive sales through various channels. Vessel products will be sold through MyAccess Clinics starting in the second quarter of 2024.
The exclusive distribution agreement between Flora Growth Corp. and Althea Group Holdings for Vessel brands in the UK represents a strategic move to capitalize on the burgeoning cannabis market. The UK's medical cannabis sector, albeit nascent, is on a growth trajectory, with increasing acceptance and legalization driving demand for related products. The partnership leverages AGH's established distribution network, potentially enhancing market penetration for Flora's Vessel brand.
From a market perspective, the alignment with a local distributor like AGH could reduce logistical barriers and improve supply chain efficiency, which is vital in a highly regulated industry such as cannabis. This deal may also serve as a catalyst for Flora's revenue growth in the UK, a key international market. However, it's important to monitor the regulatory environment as it can significantly influence market dynamics and the success of such agreements.
The multi-billion-dollar industry projection for vape pens and dry herb vaporisers underscores the financial potential of the distribution agreement for Flora Growth Corp. The expected growth from $5 billion to $15 billion by 2031 indicates a robust CAGR, which could translate to substantial top-line growth for Flora if they capture a significant market share in the UK.
Investors should consider the potential impact on Flora's financials, particularly on margins, given the premium nature of Vessel products. Premium products often come with higher margins, which could improve Flora's profitability. However, one must also consider the initial costs associated with market entry and the competitive landscape in the UK, which could affect the pace of financial returns.
The legal landscape for cannabis-related products is a critical factor in the potential success of Flora's expansion into the UK market. While the medical cannabis industry is legal in the UK, it is tightly regulated and any changes in legislation or compliance requirements could impact Flora's operations. The exclusive nature of the agreement with AGH suggests a strong legal framework to protect both parties' interests.
It's also worth noting that the UK's regulatory stance on cannabis could evolve, potentially opening up or restricting the market further. Companies like Flora must continuously navigate these legal complexities to maintain compliance and capitalize on emerging opportunities within the industry.
03/28/2024 - 09:20 AM
Fort Lauderdale, Florida--(Newsfile Corp. - March 28, 2024) - Flora Growth Corp. (NASDAQ: FLGC) ("Flora" or the "Company"), a cannabis focused consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world, is pleased to announce the signing of an exclusive distribution agreement with Althea Group Holdings Limited ("AGH") for Vessel brands in the United Kingdom ("UK"). Vessel is a wholly owned subsidiary of the Company and a market leading brand of vape pens and smoking accessories.
It is estimated that the vape pen and dry herb vaporisers represent a multi-billion-dollar industry and are expected to grow exponentially over the next decade, from $5 billion to $15 billion in 2031.
AGH becomes the sole supplier of Vessel hardware and smoking accessories in the UK medical market. Leveraging its extensive network and strong relationships with other industry participants, AGH aims to drive sales through both Business to Business and Business to Consumer channels.
Vessel's range of premium products are uniquely positioned to address a gap in the market for vape hardware and smoking accessories, catering to the growing number of UK medical cannabis dried flower and vape cartridge patients. MyAccess Clinics ("MyAccess") is a leading medical cannabis clinic in the UK and a wholly owned subsidiary of AGH. MyAccess is expected commence selling Vessel products in the second quarter of 2024.
"We are proud of our partnership with AGH, which shares our underlying philosophy and business plan for Vessel. As part of this deal, we intend to reach a growing number of customers through new channels of distribution," said Clifford Starke, Chief Executive Officer of Flora.
"AGH's exclusive distribution agreement for Vessel brands marks a significant milestone in our commitment to providing high-quality products and exceptional service to medical cannabis patients across the UK. Vessel is a revered brand in North America, and we are excited to bring Vessel's premium range of hardware and accessories to the UK," said Joshua Fegan, Chief Executive Officer of AGH.
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About Flora Growth Corp.
Flora Growth Corp. is a cannabis focused consumer-packaged goods leader and pharmaceutical distributor serving all 50 states and 28 countries with 20,000+ points of distribution around the world. For more information on Flora, visit www.floragrowth.com .
https://justcbdstore.com/
https://www.vesselbrand.com/
https://justcbdstore.uk/
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Investor Relations:
Investor Relations ir@floragrowth.com
Clifford Starke Clifford.Starke@floragrowth.com
Media:
media@floragrowth.com
Cautionary Statement Concerning Forward-Looking Statements
This press release contains "forward-looking statements," as defined by federal securities laws. Forward-looking statements reflect Flora's current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward-looking statements. Such forward-looking statements are subject to various and risks and uncertainties, including those described under section entitled "Risk Factors" in Flora's Annual Report on Form 10K filed with the United States Securities and Exchange Commission (the "SEC") on March 31, 2023, as such factors may be updated from time to time in Flora's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov /edgar . Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Flora's filings with the SEC. While forward-looking statements reflect Flora's good faith beliefs, they are not guarantees of future performance. Flora disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based on information currently available to Flora (or to third parties making the forward-looking statements)
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What is the exclusive distribution agreement announced by Flora Growth Corp. (FLGC)?
Flora Growth Corp. (FLGC) announced an exclusive distribution agreement with Althea Group Holdings for Vessel brands in the UK.
What market is targeted by the exclusive distribution agreement?
The exclusive distribution agreement targets the multi-billion-dollar vape pen and dry herb vaporisers market.
Who becomes the sole supplier of Vessel hardware and smoking accessories in the UK medical market?
Althea Group Holdings becomes the sole supplier of Vessel hardware and smoking accessories in the UK medical market.
When will Vessel products be sold through MyAccess Clinics?
Vessel products are expected to be sold through MyAccess Clinics starting in the second quarter of 2024.
