Q4 2020 Charlotte's Web Holdings Inc Earnings Call

Health care practitioner channel, so that health care practitioner channel saw significant closures in Q2 and early Q3. So it was a part of of the channel volume that just really didn't.

<unk> generate a lot of revenue in the period, and then coming out it was a slower ramp coming out as as.

Outlets in the health care practitioners channel began to open so thats. The other murky part of the environment I think the third Mercury part of the environment is our distribution expansion plans were slowed a little bit.

As retailers committed but didn't actually pull the trigger on distribution until Q4, although we were able to achieve it and so the numbers look a little bit like of disconnect because of all we did expand doors, we didn't get the full year benefit of all of those doors.

I think thats why youre seeing the momentum in Q3 and Q4 on vdb begin the ramp up if you look at us versus our competitive sets, while we're down 29, 5% in <unk> versus year ago. If you look at our numbers versus our competitive set were actually significantly outperforming.

The competitors, who are the same channel and so those initiatives that we've put in place are in fact, helping to improve our revenue, but due to the store closures and I think much lower traffic during the obvious pandemic were not seeing the full benefit we will see.

The better this year as we're lapping that and we expect the vast majority of those.

Those fog.

Filters to lift in 2021, as we begin to get into Q2.

Got it that makes a lot of sense. Thank you and then just a quick follow up the.

Stanley Brothers announcement was very exciting.

How should we expect your strategy to evolve over time from just pure hemp derived CBD to more of of cannabis wellness broadly and how much of a push we expect just in the higher THC products overtime.

Yes.

The interesting thing about the cannabis market is we keep putting a very high number on that market and depending on on the outlet that you read. This market is kind of be 60, 70, 80, or a hybrid of $1 billion big.

I believe that it kind of be that big but for whatever reason, we keep thinking that entire market is.

Recreation of the truth of the matter is the cannabis sector will become the consumer products good company and in doing so it will be segmented by different consumers with different needs as you look at that the <unk>.

Total available market form for recreational THC.

Is something well below the numbers that we've all read what I get excited about is the continuum from full spectrum hemp extracts, which is really low.

Low THC below 0.3 and high CBD to the.

To that great ground up to medical cannabis.

Don't have the exact products because we are in development as we speak but we believe we've got a true right to win in that condition based cannabis wellness environment that is above 0.3, THC, but well below the intoxicating levels of recreational or directly medical cannabis and so for us when we.

The map that space out today in the U S. The CPD sector is anticipated to be about 13 on the billion dollar category over the next three to four years, when we map out the space. We believe our brands compete with in the cannabis wellness sector. It increases are.

Total available market is something closer to $30 billion to $40 billion, so without doing much beyond what we're doing today, but just getting to better products that have higher levels of efficacious net with slightly higher levels of THC, we're able to expand our total available market by two to three times, that's just within our company.

And so what we get excited about is the option purchase agreement with the Stanley brothers enables us to expand our footprint into segments that we of our right to win and then partner with the Stanleys, who tend to be a little bit more in that social what I would call social social lubricant stage of the.

Of the of the cannabis market that gives us a really good and great footprint the compete within with brands that consumers Trust and brands that they recognize and I think of the CPG category begins to defend in cannabis youre going to see brands become more and more important and trust and safety and.

Quality of become the key parameters around where consumers make decisions. So we like the opportunity very much we will prepare ourselves for the legalization of cannabis in the U S, but outside the U S where it is federally permissible we will begin to explore these opportunities and incubate if you will the strategy.

That will be pursuing in the U S. So I'm excited about what the head of us.

Great. Thank you so much.

Absolutely.

Again, if you'd like to ask a question. Please press star one on your telephone keypad.

We have no questions on queue at this time management would you like to go with closing remarks at this time.

Absolutely I'll make this quick guys I really appreciate I know theres a lot of policy. This morning.

We appreciate you participating and asking your questions.

And look forward to reporting next to you on our first quarter results on May 11th. So thank you for taking the time. Thank you for the questions and look forward to speaking to you again soon.

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation you may now disconnect your lines.

Okay.

Yeah.

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