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Zoetic inks new distribution agreement for Chill products

The CBD specialist also said international sales were a “key objective” for the second half of its current financial year

Zoetic International PLC - Zoetic inks new distribution agreement for Chill products

Zoetic International PLC (LON:ZOE) said it has signed a multi-state distribution agreement with a new partner, BettermentRS, to market its Chill brand of cannabidiol (CBD) products.

The cannabis products firm said the deal, which will see BettermentRS distribute Chill products among its network of outlets, is the latest development from Zoetic’s partnership with US firm Ox Distributing.

READ: Zoetic files US patent applications for manufacturing method of Chill CBD smokables

Ox is owned by the Schrader family and forms part of the same group as the Schrader Oil convenience store chain, through which Zoetic sells its Chill products.

In a trading update, Zoetic said the deal with BettermentRS brings the total number of active US distribution deals to four, covering over 6,000 retail outlets.

The company said it is prepared to roll out the Chill brand at a rate of around 500 stores per month, however, this had been delayed by disruption caused by the coronavirus pandemic.

However, Zoetic said with lockdown restrictions being relaxed across the US it anticipated having an “early indication in the coming weeks of how the roll-out plan is progressing”.

The firm added that negotiations with retailer AATAC, which owns Gulf, BP, Sunoco, Circle K and Chevron convenience stores, are “proceeding positively”, however, the pandemic had slowed progress.

Meanwhile, Zoetic said strong brand recognition for its Chill products was generating inquiries from international distributors and it is aiming to sing its first international distribution agreement in June, with negotiations “already well advanced”.

The company said international sales were a “key objective” for the second half of its current financial year.

"We are thrilled to pick up another distributor with enormous reach and well recognised retail outlets.  Chill will continue to choose the right distributors to partner with, and which match the goals and ambitions of the brand", said Zoetic co-chief executive Antonio Russo.

Fellow co-CEO Trevor Taylor added: "Our vision is progressing well, and we are strategically prepared to manage our growth and roll out plan both in the US and internationally.  There are still many challenges due to [coronavirus], but with strong collaboration and trusted partners, Zoetic is confident in its ability to hit the ground running and be a leader in the market."

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Price: 9.785 GBX

LSE:ZOE
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Market Cap: £19.04 m
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