MMJ Group investee Sequoya sets scene for strong 2021 with focus on Europe
With few regulatory hurdles around CBD in Europe, Sequoya is hoping for a rapid rise in business following growing interest from consumer goods manufacturers and particularly cosmetics, food, beverage and nutraceutical companies.
() (OTCMKTS:MMJFF) (FRA:2P9) investee Sequoya Cannabis plans to establish itself as a leading accredited supplier of cannabidiol (CBD) to consumer goods manufacturers and pharma companies across 2021 with a special focus on Europe.
As a part of this strategy, the company has chalked out plans focusing on vital industry compliance and accreditation, a move intended to keep the company ahead of the competition in 2021.
Plans for 2021
In the first quarter of 2021, the company hopes to land a THC extracts processing permit, building on a pre-approved THC extract process permit, which could lead to direct sales to pharma & medical MJ companies, a segment which has limited competition in Europe and has high margins of up to 250% in sales.
In the second quarter, the company aims to secure EU GMP Pharma Certification that could facilitate direct sales to pharma & medical MJ companies.
Sequoya has limited competition in Europe in the segment along with a strong worldwide distribution, which could help it to achieve margins to the tune of 600-800%.
In the third quarter, the company is aiming for ISO Cosmetics Certification and for Good Laboratory Practice Certification in the fourth quarter.
Expand CBD supply
The company will also continue to expand its CBD (cannabidiol) supply to cosmetics and supplements brands.
Sequoya already has highly refined CBD products, custom formulations and standards that are in line with target industries and it does not have an equal in Europe.
It is targeting expansion in the following primary target regions in Europe – Germany, UK, Spain, Netherlands, Poland, Switzerland, Luxembourg, Italy, Ireland - along with Japan, South Korea, China, New Zealand and Australia.
Operations in Poland
Sequoya, a Canadian company registered in Ontario, has main operations in the heart of Europe - Poland - and produces highly refined cannabinoid extracts intended for use in formulas for various consumer goods products.
The company has developed eight products and has the following standards - GMP food-grade certified, HACCP, food sanitation, certified to produce for cosmetics and Pre-Approved THC Handling Permit.
The total sales of cannabidiol products in the European Union is around €450 million, which represents around 30% of the global market.
CBD use in retail products is legal with key industries including cosmetics and supplements and the strongest growth is seen in Germany, Poland, Czech Republic, Spain and the UK.
The company’s location in Poland provides certain advantages including lower operational costs and centrality to target markets.
Poland also provides access to world-class technicians and engineers at a substantially lower cost than elsewhere, some of whom are already working with the company.
Sequoya achieved a steady increase of 12% in sales in 2020 and has orders worth €628,000 in the pipeline.
The company has used the pandemic lockdown to enhance its competitive advantage.
During the year, the company has linked with international consumer brands such as Nestle, L’Oreal, and has set up a distribution network through FMCG channels chains across borders.