In the fall of 2018, cannabis company, Charlotte’s Web (CSE: CWEB; OTCQX: CWBHF), made feelers showing a possible partnership with beverage giant, Coca-Cola. The plans, however, did not push through, and Coca-Cola pulled out without much explanation.
The connection between the two companies, however, seems to continue as the company just announced that Eugenio Mendez has joined the group as Chief Growth Officer. Originally a vice president in the division of Global Marketing of Water, Enhanced Water and Sports Drink for Coca-Cola in Atlanta, Georgia, Mendez comes with much experience.
Some pointed out that Coca-Cola had global marketing and strategies in that division. Prior to his assignment, Mendez served an advisory role for two years with Charlotte’s Web. In his new position, Mendez will do marketing, business development, and sales function.
Charlotte’s Web
Hess Moallem, the president of the firm, expects Mendez’s expertise will help the consumer-packaged goods portion of the industry as it plans on global expansion. Several other leadership positions will be filled in 2019. Charlotte’s Web list as a Colorado-based cannabidiol company and just became an Initial Public Offering (IPO) in August 2018. Even though Colorado-based, it lists on the Canadian Securities Exchange.
Its previous name, Stanley Brothers Holdings Inc., became known for its band of brothers Jesse, Joel, Jordan, Jon, Josh, Jared and Austin in 2012 who created non-psychoactive hemp-based products. The company aimed to dominate the industrial hemp market that called for less than 0.3 percent THC.
The firm also covered the medical cannabis territory as reported by Forbes in September 2018. Classified as a biotechnology /pharmaceutical firm its foray into the beverage market surprised many and word of a rename to Charlotte’s Web Holdings, Inc. leaked out early, but in another story in the same time frame it had to do with an application. The trademark Charlotte’s Web applied for back in 2014 lists as for medical purposes 005 International Class but has abandoned in 2018 report. What intercepted it possibly became a change in direction with Mendez taking the helm.
The foundation of the firm came from proprietary strains made with the hemp plant as a whole then extracted. The plants developed to have a full phytocannabinoids, terpenes, plus flavonoids and other necessary chemical compounds.
The company first experimented with medicinal oils and as it grew, most investors gave money for those ventures, bolstered by the thought of a Coca-Cola investment. When news came out of the partnership not pushing through, the company still remained to be a top cannabis contender. The Forbes article caught the attention of nearly 31,000 viewers despite the information in the other article. With the January announcement of Mendez, it became more clear to investors what had taken place.
The story behind Charlotte’s web
According to the company’s origins, the Stanley brothers encountered a young girl named Charlotte Figi who had Dravet syndrome. Scientific American writer, David Noonan, reported the details of the encounter and the data. The number of seizures she suffered prevented her from having a normal life. Dravet syndrome defines as severe myoclonic epilepsy that develops during infancy.
One of the medical oils created alleviated the condition so Charlotte could have a more normal life. Tagged as social justice, social responsibility company the public became fascinated with its altruism. Charlotte became only the first of many who benefited from the hemp-based medical oil. At that point, Joel Stanley stated the founding principle of Charlotte’s Web was, “to do the greatest good in the world by helping people live better lives.”
The Forbes story was written by a United Nations reporter, Sara Brittany Somerset, stated the passage of Charlotte’s Web IPO would become a litmus test for other CBD companies going public.
The change
Stanley Brothers and Charlotte’s Web on their Voluntary Filing Program reported jurisdictions in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland even though they are a Colorado-based company.
The new leadership must navigate the compliance programs for CSA and FDA successfully. The prior plan under the Stanley Brothers had the elite scientific community at large backing the some of the medicinal oils. Mr. Moallem will be advising but then transitioning out. As of the fall, the terms Stanley Brothers and Charlotte’s Web even on the website have been used separately and together except in labeling. Many of the products have SB for Stanley Brothers but may come from Charlotte’s Web perspective.
A view of the company website highlights company products: From hemp oils for humans to products for pets mostly and most have a medicinal purpose.
Conclusion
Compliance frameworks in Canada have phase one in place but phase two will implement in 2019. It may be that Charlotte’s Web is well aware of additional regulations coming the fall of 2019 which also may have caused a change in plans.
Mr. Mendez has global experience across many markets. He will most likely have strategies that can take the company nationally in the markets it chooses, Mendez’s expertise would be such he can delineate product lines, advertising, and presentation to clear up confusion as the company moves into recreational cannabis ventures. Until Mendez reforms the board, the rest of the story of all the future ventures of the company may simply be pending until the structure is in place.