PURA reveals horizontal CBD market expansion
The cannabis drinks company seeks to acquire businesses with product lines across CBD-infused drinks, edibles and skincare
Puration, Inc. (PURA), a Texas-based CBD drinks company, has revealed details regarding the company’s horizontal CBD market expansion strategy. The company’s acquisition campaign started in January this year, and the business has executed four deals to date, including the acquisition of a CBD-infused sexual wellness product line, a CBD confections business, a CBD pet products company, and a CBD sun care business.
The company said that the acquisition strategy was on the table before the economic impact of Covid-19. PURA had decided to take advantage of the 2019 cannabis sector slowdown by rolling-up CBD-infused product lines having difficulty finding continued access to growth capital.
PURA said it now has secured a $5 million investment to fund its acquisition efforts.
CBD category targets
The company has set sights on the acquisition of CBD-infused beverage, edible and topical businesses.
PURA targets CBD products that can be enhanced with PURA’s patented technology. The company owns a license to a US-patented cannabis extraction process backed by extensive university medical research.
The license, issued by NCM Biotech, is exclusive for drinks, edibles and cosmetics among other uses.
Combined with its existing drinks product line, PURA’s horizontal market opportunity ranges across markets worth $2 trillion, with projected market value as follows:
- Sexual wellness $39 billion
- Confections $232 billion
- Pet products $202 billion
- Sun care $12.6 billion
- Non-alcoholic drinks $1.6 trillion
PURA brand overhaul
The company said that its acquisition strategy concentrates on making acquisitions in exchange for royalty agreements and a commitment for PURA to fund a marketing expansion of the product line.
In terms of market, PURA is developing a single brand name identity and unified marketing strategy that can cross all five industries listed above in addition to any new industries PURA may enter with future acquisitions.
PURA said the acquisition strategy was set up after PURA had established traction with an independently developed product for the sports nutrition industry.