The deal with Groupon is also seen as a strategic fit, giving Creso access to Groupon’s rich database to help with future marketing efforts.
Creso Pharma (ASX:CPH) announced that its wholly-owned US subsidiary, Sierra Sage Herbs (SSH), has expanded its partnership with global e-commerce marketplace Groupon.
Under the new deal, Groupon will include broader range of of SSH brands on its platform.
The SSH banner comprises a diverse range of leading plant-based health products – including plant-powered first aid Green-Goo,
Today’s expanded deal with Groupon will enable SSH to reach a significantly larger audience by participating in daily deals and limited-time offers provided by the Groupon platform.
At last count, Groupon’s user base comprised around 22 million active customers globally, and generated around 100 million visitor sessions per month across mobile applications and its website.
In 2022, the platform facilitated US$1.8bn of transactions, and generated full-year revenues of US$600m.
Creso CEO William Lay says the deal provides SSH with a large, strategic distribution partner as it continues to establish market share in the US, Canada and international markets.
“The inclusion of additional SSH’s products marks another step in the company’s strategy to convert its existing market position into additional distribution opportunities when they arise,” he said.
“It reflects the ongoing strength of the working relationship with one of our key strategic distribution partners.”
Since its acquisition by Creso Pharma in August 2022, SSH has been designated as the manager of the company’s US operations.
In this regard, SSH has been able to leverage its market footprints in the US to build sales and explore synergistic opportunities for other subsidiaries of Creso Pharma.
SSH’s points of distribution across the US and Canada comprise vertically integrated e-commerce platforms and physical store partnerships including retail giant Walmart.
Walmart recently completed a US$214,000 purchase order, resulting in shelf placement for SSH products in 400+ select Walmart stores across the US.
Today’s deal with Groupon is also a strategic fit for SSH, allowing the company to benefit from Groupon’s established reputation in the market to help drive sales.
In addition, SSH can also leverage Groupon’s broad data set to assist SSH brands to refine their marketing strategies.
Data that can be accessed from the Groupon platform includes customer behaviour, purchase patterns, and campaign performance – all of which can be used to inform future marketing efforts and improve overall brand growth.
Creso also believes that SSH’s strong product development and distribution model allows for accelerated growth as the company continues to expand its broader asset portfolio.
“We look forward to providing more updates on SSH’s expansion strategy across the US market, both for its core brand suite as well as cross-selling opportunities for other Creso Pharma subsidiaries,” said Lay.
Launch of Lucenex functional mushroom products
In a major development, SSH has also expanded its range of all-natural, health and wellness products, and plans to launch a range of functional mushroom offerings, which will be sold under the Lucenex range.
The products were developed in collaboration with Creso’ wholly-owned psychedelics subsidiary, Halucenex, combining the group’s knowledge of mushrooms and SSH’s botanical expertise.
The new range is expected to include three stock keeping units (SKUs), focused on heath and wellness needs sought through the medicinal properties of functional mushrooms and other plant properties.
They will be sold through a soon to be launched company ecommerce site (www.lucenex.com) and via Amazon USA. SSH will also leverage its large retail footprint to drive traditional bricks and mortar uptake.
Creso says the launch will provides it with access to another major growing market segment.The global functional mushroom market was valued at US$26.7m in 2021, and is expected to expand at a CAGR of 10.8% between 2022 and 2030.
This article was developed in collaboration with Creso Pharma, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.psychedelics mushroom deal creso pharma creso
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