ECS Botanics Holdings has secured a deal to stock its Extra Virgin Tasmanian Hemp Seed Oil in Coles supermarkets nationwide.
A similar deal was announced with Woolworths in November 2019, that day the share price climbed 41% to 5.8c. Although today the share are trading only 9% higher at 3.6c.
In addition to today’s hemp food deal, ECS has built a thriving medicinal cannabis business since it listed in 2019, now the largest medicinal cannabis cultivator in Australia and signing a series of supply agreements in Australia and into Europe.
ECS Botanics Holdings (ASX:ECS) will have products stocked in both major Australian supermarkets after securing a deal with supermarket giant Coles.
ECS announced today it is expected to have its Extra Virgin Tasmanian Hemp Seed Oil on Coles shelves by October following the deal.
It’s the latest Australian supermarket supply deal for ECS, which announced in March 2020 Woolworths would stock its hemp seed oil and soups.
Coles has more than 2500 stores nationally and will stock ECS’s 250ml Extra Virgin Tasmanian Hemp Seed Oil in its cooking oil section.
Hemp oil popularity among consumers growing
Hemp is a variety of cannabis grown specially for its seed and fibre and has low levels of THC. Hemp seed oil is becoming popular amongst consumers as a more environmentally and ecologically sustainable source of Omega 3.
The oil has also been recognised for its anti-inflammatory properties and as a healthy, versatile oil for cooking, baking salads and smoothies.
Hemp seed oil also as anti-aging properties, nourish the skin without clogging pores. People have reported that it can ease redness, psoriasis, and eczema.
Direct relationship with Coles to cut distribution costs
The medicinal and hemp wellness company will no longer use Just Foods Australia (JFA) for the distribution of its products, in a move to achieve significantly higher margins on its products.
As part of the company’s long-term strategy, further deregulation in Australia and the overlap between medicinal cannabis and CBD markets in Europe, ECS is aiming to capture greater market share and brand recognition.
At the time of writing the ECS share price had risen more than 9% to 0.036.
This article was developed in collaboration with ECS Botanics Holdings, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.