Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) will soon have a slice of the multi-million dollar global functional mushroom market with the launch of a new non-psychedelic product range by its US subsidiary Sierra Sage Herbs LLC (SSH).
The Lucenex functional mushroom products will give the company access to a market valued at US$26.7 million in 2021 and which is expected to grow at a compound annual growth rate (CAGR) of 10.8% between 2022 and 2030.
Additionally, SSH has expanded its distribution partnership with global e-commerce marketplace Groupon to scale the business in the US, Canada and into international markets.
Formulated in collaboration with Creso Pharma’s wholly-owned psychedelics subsidiary, Halucenex Life Sciences Inc, the new products will be sold through a soon-to-be launched in-house e-commerce site, www.lucenex.com, and via Amazon (NASDAQ:AMZN) USA.
SSH will also leverage its large retail footprint to drive sales through the traditional bricks and mortar business.
"Natural solution"
Creso chief executive officer and managing director William Lay said: “The expected launch of the company’s functional mushroom products follows considerable R&D and collaboration with Halucenex Life Sciences, in an effort to showcase our CPG product development knowledge and go-to market capabilities.
“We are very confident that the finished product will deliver another natural solution that will resonate with consumers and drive additional sales growth.
“Further, the expansion of the company’s agreement with Groupon reflects the ongoing strength of the working relationship with one of our key strategic distribution partners.
“The inclusion of additional SSH products marks another step in the company’s strategy to convert its existing market position into additional distribution opportunities.
“We look forward to providing more updates on SSH’s expansion strategy across the US market, both for its core brand suite as well as cross-selling opportunities for other Creso Pharma subsidiaries.”
Growing distribution footprint
SSH is hoping to reach a significantly larger audience through Groupon’s 22 million active customers.
The full range of 22 products from the Good Goo and Southern Butter brands will now be available through the American global e-commerce marketplace, which facilitated US$1.8 billion worth of transactions in 2022.