Zoetic International PLC takes ‘careful’ distribution approach as it prepares for

() said it is confident its careful approach to distribution would ultimately lead to better sell-through rates as it provided an update on the progress of its rollout of CBD products on both sides of the Atlantic.

Its ‘prepare for lift-off plan’ will see its Chill brand of tobacco alternatives start taking prime positions on dedicated shelf space in 10,000 stores that are part of the Asian American Trading Associations Council’s (AATAC) network.

“Initial product shipments are anticipated in the coming weeks, with the programme’s early requirements set to be satisfied with existing inventory and available funds,” investors were told.

“With initial test markets set to span from New York to California, these key strategic geographies will inform our wider strategy, enhance brand recognition, and allow us to execute a mass market rollout that is repeatable and scalable.”

Zoetic co-chief executive, Antonio Russo, described it as an exciting time for the group.

“We are confident that our careful approach to distribution will ultimately yield better sell-through rates and higher revenues, all whilst significantly boosting brand awareness,” he went on.

“Rather than making a consolidated market entrance as an outlier, our incremental phased approach is designed to ensure that our products are the market favourite across every geography in which we operate. 

“We are enthusiastic about the growing popularity of our lines and look forward to seeing this trajectory continue in the coming months.”

Zoetic said its beta-store programme with Ox Distributing is now complete.

Products were sold in convenience stores that were owned by the Schrader Family. The results were described as “extremely encouraging” as Chill became the chain’s number-one selling CBD line.

The Schrader Family has now divested its interest in the convenience store chain and has also “fully executed their previous financial commitment”. 

“The group is very thankful for their continued support and guidance, and now looks to a promising future as the Chill brand continues to penetrate the wider American market with the benefit of valuable guidance from the Ox Distributing team,” Zoetic added.

In the same announcement, investors were told legal and regulatory work is underway for entry into the European market.

In this regard a novel foods dossier has been submitted to the UK’s Food Standards Agency, while EU compliance work is also taking place.

“The CBD space is one of the most dynamic current business sectors, both in terms of activities and regulations,” Zoetic said. 

“As evidenced by our FSA Novel Foods application, Zoetic seeks to be at the forefront of current best-practice.  This requires frequent input from our legal advisers and regular changes to our website and marketing material.”

In a wide-ranging update, the company said Paul Ferguson, formerly vice president for corporate finance, has been appointed chief financial officer.

Investors were also told: “An executive search programme has also commenced, as the group targets talented independent board directors.

“Interviews for Zoetic board positions have begun, and the group looks forward to providing an update on this front in the coming months.”