Khiron Signs First Kuida™ Distribution Deal in Hong Kong
Breakthrough Agreement Brings CBD Skincare Brand to World Leading Asia Pacific Market
- Kuida CBD skincare products to be distributed through pharmacy, beauty retail and online markets serving the Hong Kong territory, beginning Q4 2020
- The Asia Pacific Region ("APAC") is the highest value global region for skincare, with 53% of global sales (Source: Euromonitor)
- Agreement with DNO Group, a leading APAC distributor of global brands to over 50,000 points of sale throughout the Asian region
- Kuida product training, CBD category education, consumer-facing promotion and brand activation to support distribution
- By 2024, the CBD market in China is anticipated to grow to approximately US$15 billion, with the beauty and wellness sector the main growth driver (Source: Arcview Market Research and BDS Analytics)
- Khiron recently recognized by emerging global trend research firm Technavio Research as one of the top global players in the CBD cosmetics market, alongside L'Oreal SA and The Estée Lauder Companies
TORONTO, Aug. 10, 2020 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), (OTCQX: KHRNF), (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe, announced that it has signed a distribution deal for its KuidaTM CBD cosmeceutical brand with DNO Group, a leading distributor for the Asia Pacific market. Kuida skin and body care products will be distributed by DNO Group through their network of retail and online channels in Hong Kong, with first orders anticipated in Q4 2020. Distribution is conditional on TSXV approval.
"With this distribution deal we establish a significant footprint in Hong Kong for our Kuida brand and gain access to the Asian Pacific beauty and skincare market, the world's largest region for skincare products. DNO Group have a large distribution network of over 50,000 points of sales in the region, including prominent pharmacy, beauty retail and online channels that we know from experience in other jurisdictions are where our customers are choosing to purchase Kuida products. Importantly, DNO Group brings valuable insight into the Asian consumer profile, further supporting the impact of the brand roll-out in Hong Kong," comments Alvaro Torres, Khiron CEO and Director.
Hong Kong is a market that serves both the local population of 7.2 million and serves as an import hub for mainland China. The Hong Kong personal care and cosmetics market is experiencing robust growth with estimated revenue of US$2.7 billion achieved in 2018 and continues to expand with many beauty and personal care items considered daily necessities, as rising health awareness and image-consciousness drives demand.
Seven Kuida SKU's will be distributed into the Hong Kong market, with first orders anticipated in Q4 2020. This continues the Khiron strategy to target specific, high-value global CBD skincare market opportunities. Kuida is now available at over 350 points of sale in Colombia, as well as the UK and recently announced entry to Spain. Khiron was recently recognized by Technavio Research as one of the top global players in the CBD cosmetics market, alongside L'Oreal SA and The Estée Lauder Companies. Technavio is a leading global technology research and advisory company focused on emerging market trends.
"Kuida CBD based skincare products are well suited for consumers in Hong Kong, as well as for our portfolio and distribution capabilities. Furthermore, the efficacy of the products themselves is impressive. We expect a highly positive sales development for Kuida in Hong Kong going forward," said DNO Group's Managing Director, Ofri Shaysh.
About DNO Group
DNO Group has been established with the purpose of opening doors for international brands to business opportunities in Asia. Our group initiates, promotes and develops business activities, identifies business opportunities and potential local partners, leveraging its extensive network and cultural knowledge of the Asian market in order to accelerate business.
We understand Asia, its strengths and its challenges. In the last 15 years, the principles of DNO Group have been heavily involved in conducting business in APAC. By virtue of our experience, we provide deep practical insights which enables international brands to succeed in Asia. Further DNO Group information can be found at https://www.dno-group.com
About Khiron Life Sciences Corp.
Khiron is a vertically integrated medical and CPG cannabis company with core operations in Latin America, and operational activity in Europe and North America. Khiron is the leading cannabis company in Colombia and the first company licensed in Colombia for the cultivation, production, domestic distribution, and international export of both low and high THC medical cannabis products. The Company has presence in Mexico, Peru, Uruguay, Brazil, UK, Spain and Germany, where it is positioned to begin sales of medical cannabis.
Leveraging its first-mover advantage, and patient oriented approach, Khiron combines global scientific expertise, product innovation, agricultural infrastructure, wholly-owned medical clinics, and online doctor education programs to drive prescription and brand loyalty to address priority medical conditions. Its Wellbeing unit launched the first branded CBD skincare brand in Colombia, with KuidaTM now marketed in multiple jurisdictions in Latin America, the US and UK. The Company is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced and diverse executive team and Board of Directors.
Visit Khiron online at www.khiron.ca, investors.khiron.ca and on Instagram @khironlife.
This press release may contain certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Khiron undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of Khiron, its securities, or financial or operating results (as applicable). Although Khiron believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statement has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Khiron's control, including the risk factors discussed in Khiron's Annual Information Form which is available on Khiron's SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and is made as of the date hereof. Khiron disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
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SOURCE Khiron Life Sciences Corp.
Released August 10, 2020