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CVS Partners With Curaleaf in Major Distribution Deal

by Shane Dwyer
April 15, 2019
Reading Time: 2 mins read
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cvs

CVS Health Corp recently started selling products infused with the popular, non-intoxicating, hemp component ‘CBD” at more than 800 of its locations as part of its distribution partnership with Curaleaf Holdings Inc. a marijuana company.

The deal was announced by Curaleaf during an earnings conference call on past Wednesday. Through the deal, the company’s most popular CBD products will all be available through 800 stores of CVS across the country and this is just the start. Curaleaf hopes that it will expand this deal to add even more locations.

CVS to Distribute Curaleaf CBD Products

The deal caused Curaleaf shares to skyrocket. The company gained as much as 17 percent on Thursday in Toronto. This raised the market value of the company to $2.6 billion. This isn’t the first time the stock gained, it had already gained 41 percent recently when its shares were sold in an October private placement that made it a public company through a reverse takeover in Canada.

We’ve been having a dialogue with national retailers for many months now,” Curaleaf Chief Executive Officer Joseph Lusardi said on the call Wednesday. “We’ve got a number of potentially exciting partnerships in the pipeline.”

CVS has confirmed that it has indeed started selling CBD products. These include CBD sprays, creams, and lotions. The products are currently being sold in states including Illinois, California, Alabama, and Colorado. The products will be sold inside the stores and will be kept on the main store aisles.

The drugstore chain is not offering any food additives or supplements containing CBD, it was confirmed by the company’s spokesperson through email.

CVS has nearly 10,000 stores worldwide. Curaleaf, on the other hand, has more than 40 marijuana dispensaries across 12 states. It recently also started its business in California and Nevada through various acquisitions. The company has developed many hemp-derived products that include vape pens, patches, tinctures, and lotions.

CBD or cannabidiol recently shot to popularity after regulations were eased across the U.S. It has now become a very trendy wellness ingredient and you can find it in products from nearly all major brands.

Part of its popularity is due to the farm bill which was passed in December, legalizing CBD for use in products. It opened up a massive market for these products.

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