Sales drop 30% for public listed CBD brands, as private capital CBD booms

While some of the UK’s biggest CBD brands are floundering with sales averaging a 30% drop, the private capital market for CBD is booming with Alphagreen raising £2.4 million at £12.4 million, up from £6.1 million last year and Nordic Oil raising at EUR 89 m valuation on Seedrs. CBD Brands experiencing significant loss of value include Love Hemp[1] (share price down 50% since its peak in March), Sativa Wellness[2] (down 23% over the last three months), Kanabo[3] (down 29%), MGC Pharma[4] (down 45%) and Oxford Cannabinoid Tech[5] (32%), many of them positioned as the next CBD market leader and retailer must have when listed.

The market has switched to asset-light business models with strong scaling and global expansion opportunities rather than brands and companies with a big vision but no revenue – most of the companies which were listed in the last 18 months.

Meanwhile, Alphagreen, Europe’s leading marketplace for CBD products, has repeatedly beaten its market targets since its launch, October 2019. Co-founder and CEO of Alphagreen, Alexej Pikovsky, said, “Consumer interest in CBD products continues to thrive as awareness, understanding and trust in the proven benefits of CBD builds. Some of the biggest brands are struggling but for private capital-funded companies like Alphagreen, the CBD market sector is booming and is now one of the fastest-growing industries in the world. In fact, new research has valued UK sales of CBD products at £450 million[6]. The UK is the 2nd biggest market for CBD products, only behind the USA and its massive population of 328 million. And our share of the UK and the global market continues to grow and thrive. We are going from strength to strength because of how we connect shoppers, brands and retailers in a unique mutually beneficial relationship within the wellness and beauty space.

“Nowhere has a wider choice of quality CBD products than our marketplace at Alphagreen. Consumers have access to a huge choice of trustworthy and effective CBD products; manufacturers and brands can reach a vast marketplace of customers and retailers benefit from the wholesale channel, where they can be guided and supported in growing their own businesses. The wholesale channel includes access to Alphagreen Intelligence, the most comprehensive CBD intelligence tool. The business intelligence system incorporates a database of more than 3,000 CBD products and combines data from multiple sources including website traffic, product reviews, social listening and Google search analytics. In short, it provides retailers with all the knowledge they need to be powerful and successful in the flourishing CBD, health and wellness sector.”

Alphagreen has enjoyed phenomenal growth since its UK launch in 2019 and has grown from listing just four brands with 50 products to over 200 brands with more than 3,000 products. Nowhere else has a wider choice of quality CBD products. Alphagreen is also expanding into other on-trend wellness industries, including medical cannabis and nootropics. The Alphagreen marketplace is live in several European countries including France, Italy, Spain, Poland and includes top global cannabis brands such as Provocan, Cibdol, Endoca, Trip and Mr Nice.

Revenue from sales across the Alphagreen market place shot up 450% in the first year alone and continues to flourish. Alexej Pikovsky adds, “I think people are using Alphagreen to buy their CBD because they can trust all the brands on our marketplace, we offer so much choice and the site is structured to help guide people to what they are really wanting fast.”