Sativa Wellness Group Inc (AQSE:SWEL) Executive Chairman Geremy Thomas caught up with DirectorsTalk for an exclusive interview to discuss their recent announcement around major discounts to their CBD products for members.
Sativa Wellness Group’s goal is to build Europe’s leading CBD wellness brand and to meet today’s fast evolving consumer expectations. Through full vertical integration of their supply chain, they plan to become on of the premier low-cost producers and high quality distributors of CBD wellness products in Europe. Today, the company announced that its Goodbody branded products are to be offered at major discounts to competitor offerings and joining me today to discuss the news is Executive Chairman Geremy Thomas.
Q1: Geremy, today’s announcement, it appears to be quite a bold move on product pricing?
A1: It is a bold move and it’s as a result of our studies and our reserahc in the market which is that CBD is a great product, our customers enjoy it and repeat purchase the product but it’s really too expensive. It’s too expensive to move to become a mass market product and we’re going to help drive the pricing down.
So, we’ve launched a membership programme today which will effectively reduce significantly the cost of using our products and we can do this because we control the whole supply chain process.
We gather up the raw materials in Eastern Europe, we process them at our plant in Poland and we send the raw materials to the UK, to our manufacturing plant where we make the products. We test the products all the way through as we have a laboratory business, PhytoVista Laboratories, that is number two in Europe for cannabinoid testing, and we brand them and we sell the products. So, having that in depth control of the product journey and having the best prices because of the lack of middlemen, we can reduce the cost to the consumer.
For members, from today, products that are out there in the market at the top end of the spectrum i.e. 20% CBD oil which is sold for an average of £90, we’re now going to be able to sell it to our members for £39.95. So, that’s a 50% reduction in pricing to them and our mantra will be ‘Best Quality, Best Price, Guaranteed’ and I think that’s going to make a real difference in the market.
Q2: Why do you think now is the right time to launch Sativa Wellness Group’s ‘Best Quality, Best Price, Guaranteed’?
A2: The market is in a state of turmoil and that’s because our new regulator, the Foods Standards Agency, is imposing a process that requires products to be approved as a novel and that’s an expensive and long term commitment to quality, in our case we’ve spent over £200,000 on the process so far.
Lots and lots of small brands, mom-and-pop shops, that are making it in their back garden are leaving the industry so there’s a lot of confusion on pricing, multiple small brands and we’re seeing that the businesses are now polarising around the bigger players, of which we are one.
So, we feel that picking up small user groups from smaller brands, joining our membership programme, benefitting from significantly lower prices for product is going to be what the market wants and it’s what we’re here to provide.