Special Report: With cannaQIX sales taking off, Creso Pharma (ASX:CPH) is taking steps to improve margins on the cannabis lozenges by bringing Swiss marketing and sales functions in-house.
Creso says it made the move after receiving a growing number of direct sales enquiries and interest in the product, which is sold at 2,100 pharmacies, health nutrition shops and retailers across Switzerland.
For the past three years cannaQIX sales and marketing has been handled by Creso’s commercial partner Doetsch Grether, a Basel-based distributor.
With Creso taking sales and marketing in-house, the company says it will improve its profit margins on the product line substantially. It also sets the stage for further product launches, such as cannaDOL, its cannabis-based revitalising topical gel.
Creso’s commercial director, Dr Gian Trepp, says the move is part of phase 3 of Creso’s operational launch plan.
“While we are thankful of having benefitted from our partnership with Doetsch Grether, our direct sales model will give Creso the opportunity to expand its profit margins as it enters a new phase of growth.”
More orders from Mernova
Meanwhile, Creso’s Canadian subsidiary is picking up speed.
Mernova Medicinal recently secured a total of four new purchase orders for a total of $C242,842 ($284,682) for its high-quality dried flower marijuana, sold under the Ritual Green brand.
The purchase orders include Mernova’s first order from Cannabis NB, the crown entity that has a retail monopoly over selling pot in the Atlantic province of New Brunswick.
Mernova managing director Jack Yu says the orders are a great start for the company, “and shows that 2021 should be promising for us”.
There’s been “great interest” in the Black Mamba strain, says Yu, who expects it to be as well received as the rest of the Ritual Green family of products.
“We are developing a reputation for quality,” he said.
Mernova is also looking forward to the imminent launch of its Ritual Sticks pre-rolled joints and its Ritual Black line of hashish.
“We are just getting started,” says Yu.
This article was developed in collaboration with Creso Pharma, 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.