Sparkling Hemp CBD beverage with 20 MG of full spectrum CBD. Creating a lower cost beverage with the "matcha" of CBD. More benefits and effects of using the 'whole" plant.
The product has formulated and we are at the production stage. Website creation and overall brand solidified. All vendors have been sourced and we are focusing on fundraising. As soon as we receive capital we will implement our launch strategy/pre-order. Will be a 30 day lead time before we officially launch!
Total Addressable market -
HEMP CBD ONLY
2016 - $170 Million
2018 - 600 Million
2020 - Estimated 1 Billion, however their have been recent articles released that this could be 6 Billion due to quick market adoption.
Hemp CBD has seen a 60% CAGR and will continue to sky rocket as the market becomes educated on this miracle nutrient.
I can compare this to the boom of Kombucha in 2010 when it began to reach the masses. The Industry is hoping to break 5.5 Billion by 2025 with a 23% CAGR.
Problem or Opportunity
40 Million Americans are dealing with Anxiety, that's 18% of the population. 15 Million are reporting social anxiety, that's 6% of the pop. 44% of Americans have reported feeling frequently stressed and 16 Million Americans have Major Depression disorder, which is the leading cause of disability in the US.
In addition, the CBD market is still undereducated and the quality of products and dose amounts are inconsistent. Most of the market is dominated by Creams, Oils, and Vapes. There is an opportunity for a beverage to grab a big portion of market share and reach the masses faster than the products currently on the market.
Solution (product or service)
CTFO has the opportunity to offer relief, one can at a time. The benefits of CBD and the impacts on our Endocannabinoid system are immense. From Stress, Anxiety, and depression relief, CBD also aids in PTSD, Epilepsy, Pain, and other psychotic disorders. CBD is in more and more clinical trials and looking at being utilized in Big Pharma. The best part of Hemp CBD is that it does not get you HIGH. Due to regulation by the federal government, HEMP CBD can legally only have .03% THC and most companies are offering 0% THC.
Great news for consumers as they will have an option to manage their daily ailments. CTFO wants to be the trust online leader of RTD hemp CBD beverages.
New Category, variant but expanding.
Our main competitors will be SPRIG and Recess CBD beverages. Similar price point but product offerings are very different. Our competitors are using oils and isolates. In addition, most do not have a full recommended dose or do not absorb properly in the body.
Sprig - 25 MG of CBD oil - Doesn't absorb properly - Poor flavor profile using stevia and erythitol as sweetners.
Recess - 10 MG of Hemp Oil - Not enough to feel the benefits - uses cane sugar and positioned as sparkling water, however, they have added adaptogens which make the beverage taste like medicine due to the lack of sweetener.
Advantages or differentiators
The advantage we has over our competitors are the quality of CBD and the simplicity of our brand. We are a Sparkling Hemp CBD tea infused with 20 MG of full spectrum CBD, think the "Matcha" of CBD.
The CBD works in 10 minutes and has a 90% absorption rate.
We have simple organic ingredients which our demographic is partial to because of health, better for you movement.
We have a hybrid Financial Model, consisting of d2c, online and subscription, and traditional distribution.
Main indicators are the price per unit decrease as production runs increase, from $1.49 to $ .76cents. We will sell the cans at $5 a can and are looking to reduce the price in 5 years. In addition, we will offer discounted prices for our subscription service, $4 to $4.50 per can.
We are looking to do over 2 Million in the first two years, based on our marketing budget and then have a 40% CAGR yr over yr. We are looking to generating over 10 Million in revenue by 5 years and that is without the expansion into new categories, such as to go packets of CBD and Shelf Teas, etc.
We have a hybrid business model, from d2c, subscription, and direct to consumer. CTFO's vision is to be the leader in CBD beverages online. We will always have a digital first approach accounting for 80% of our efforts. 20% of our efforts will go towards launching in larger chain stores and taking one market at a time. Ultimately in 5 years, we want to be 50-50 on our efforts to capture as much of the market share as we can.
Money will be spent on
USE OF FUNDS -
Overall Brand Awareness and line expansion
Offer for investor
20% equity of our company for 1 million dollar investment.