Why Real Brands Inc (OTC US: RLBD) Has a Leg Up on CBD Rivals in C-Store Evolution (GWPH, JAZZ, YCBD, NEPT, TPB, MRMD)
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Real Brands Inc (OTC US: RLBD) is almost a quarter owned by Turning Point Brands, Inc. (NYSE: TPB), which is a third owned by a multi-billion dollar hedge fund with a vested interest in helping TPB, and its major interests and partners, secure necessary financing on strong investor-friendly terms.
That’s a strong starting point in making a case for RLBD as an emerging key play in the reemerging CBD space.
But there’s a much more important point one might make in this story that also hinges on its relationship with TPB: RLBD is a supplier to TPB and there are signs that TPB is positioning itself as a possible top-tier play on the idea that CBD is moving toward a convenience store model.
Given recent money flows into CBD players such as Neptune Wellness Solutions Inc (NASDAQ: NEPT), cbdMD Inc (NYSEAMERICAN: YCBD), GW Pharmaceuticals PLC- ADR (NASDAQ: GWPH), and Jazz Pharmaceuticals PLC (NASDAQ: JAZZ), this story could help to put RLBD on the radar.
C-Stores as the Next Frontier for CBD
The CBD model has been to push past barriers by advertising its lack of THC as a key differentiator. But it hasn’t managed to get reliably into convenience stores yet in a big way. If it does, this could lead to breakout growth in the space because everyone shops there – it cuts across demographic and socio-economic barriers like no other retail endpoint.
Real Brands Inc (OTCMKTS: RLBD) is a bulk supplier to TPB, which is a billion-dollar NYSE-listed company. RLBD supplies TPB with CBD oils and isolates in volume, which are then used in TPB products. Turning Point has more than 250,000 points of distribution with leading brands such as Zig-Zag®, Stoker’s®, and Beech Nut®.
As TPB’s model potentially turns increasingly aggressively toward c-store distribution, that potentially positions RLBD in a leadership role as the cannabis and CBD market inevitably mature toward increasingly mainstream distribution models, as these products move from exclusively head shops and dispensaries and out into the primary consumer distribution system that defines the developed world economy.
In Turning Points recent earnings conference call, Graham Purdy, Chief Operating Officer, said, We continue to lead the growth and penetration of the product in convenience stores and are expanding our presence in the non-measured alternative channel, including head shops and dispensaries, where most of that market currently exists and where Zig-Zag is still underrepresented.
TPB also said it is in 210,000 stores at this time, so it has already achieved market penetration. You can think of its non-CBD products as gateway products into a network of distribution that can then be expanded to include CBD products as major chains adopt that market.
In other words, TPB is RLBD’s point of access to a leadership role on the distribution side if and when the CBD market evolves into a c-store model in a primary fashion.
More to the Story
Real Brands Inc (OTCMKTS: RLBD) is an emerging player on the rejuvenating CBD stock landscape, and one that may deserve attention as a squeeze candidate because the stock has been a target for bears, but one that may be entirely misplaced given the company’s recent strong strides toward differentiation as a high-margin success story in the space.
First off, there’s more here than meets the eye at first glance.
RLBD recently completed a merger that took Canadian American Standard Hemp Inc., or “CASH”, onto the public markets last fall. That installed a new leadership team including a new CEO and Chairman, Thomas Kidrin, who was formerly with MariMed Inc (OTCMKTS:MRMD), a publicly traded cannabis company.
Note that the in-depth story surrounding the real situation here can be found by checking out a recent interview with the Company’s CEO, which can be found here.
RLBD also recently brought in the Chief Science Officer of iconic skincare brand, Elizabeth Grant Skin Care, Dr. Adel Rammal, PhD. Rammel will be instrumental in helping to formulate leading-edge branded CBD topicals to be marketed through the company’s Wa Brands segment.
RLBD is working toward an uplist onto the OTCQB as a stepping-stone to a further uplist onto a major exchange. The company is in the process of filing Form 10, which should be completed this summer, and believes it will be able to uplist shortly after.
The company also has already established formal affiliation with a group that works directly with major research universities to back up its claims and add value and brand substance.
Finally, as noted above, Real Brands Inc (OTCMKTS: RLBD) has deep-pocketed support given that it is almost a quarter owned by TPB, which is a third owned by a multi-billion dollar hedge fund with a vested interest in helping TPB and its major interests secure necessary financing on strong investor-friendly terms.
Looking Ahead: Key Catalysts for RLBD
Real Brands Inc (OTCMKTS: RLBD) is potentially differentiating itself as a second-stage winner in the re-emerging CBD space, which is a $13 billion market with growth ahead, according to analysts. According to its recent interview, the company is in late-stage negotiations with a major celebrity influencer who will help to spread its brands far and wide and generate massive consumer interest. We would expect an announcement on that soon, given the tenor of the company’s communications.
The company is also working on expanding its product lines and has the proprietary technology to produce higher-margin cannabinoid-based products at scale efficiently, which grants RLBD another edge over the competition. RLBD is also working on an international expansion that will include marketing through international sports celebrities and sports leagues and include a sports wellness product line that Kidrin says is nearing launch.
We would also point out that the company noted in its interview that it is also working on a line of CBD Beverages and other fresh concepts, which will launch in the next 60-90 days. RLBD wants to move these new products internationally as well and will seek to market through authentic influencer relationships.
Finally, RLBD appears to also be working toward an uplist onto the OTCQB as a stepping stone to a further uplist onto a major exchange. The company is in the process of filing Form 10, which should be completed this month, and believes it will be able to uplist shortly after.
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