When investors think of cannabis brands, cosmetics may not be at the top of the list, but one beauty company is working to launch an official line of products in Canada.
Evio Beauty Group is set to introduce a three-product line of cannabis sativa seed oil infused cosmetics, including a revitalizing serum, a rejuvenating mask and a set of cleaning wipes.
The line of products, called Evio Skin, are being co-developed with Aurora Cannabis (NYSE:ACB,TSX:ACB) which goes to show the range of products licensed producers (LPs) will chase in a legalized market.
Brandi Leifso, founder and CEO of Evio, said all products sold through the Aurora partnership will carry a “certified standard stamp” to show consumers the product was grown as per the LP standards.
At first, the products will be sold online only through the Evio website, with a tentative launch date of April according to Leifso; by the end of the year, the cosmetic brand will seek distribution in retail stores.
The benefits of cannabis and its derivatives for cosmetics is a topic Leifso wants to explore further with specialized research on the effects of cannabidiol (CBD), tetrahydrocannabinol (THC) in addition to hemp and hemp-produced CBD.
“We haven’t seen a lot of that kind of research on the market yet but we’re really excited to be doing a lot of those clinical trials ourselves,” Leifso told the Investing News Network (INN).
The partnership between the beauty company and the LP was first announced last July as a strategic investment and collaboration.
“We’re excited to work with Brandi and the team at Evio Beauty to develop and launch this innovative new line of hemp seed and CBD-based cosmetic products to a large and growing audience worldwide,” Aurora CEO Terry Booth said at the time.
Leifso told INN her company was fielding partnership opportunities from a variety of LPs until Aurora made its case.
The LP secured the preference of Evio when its presentation included elements of women empowerment instead of pure dollar performance.
“We also are engaged with each other in different marketing aspects that will start to come too late to the consumer as in the spring of this year,” Leifso said.
Leifso touts the planned research from Evio with cannabis and derivatives to find more products, but when asked about specifically what are the expectations of the studies, she defuses by saying the research will lead to increased knowledge to create better products.
As the chase to expand the range of products cannabis will be able to disrupt continues, several companies in the public space will attempt to diversify their strategies and find niches to create value for investors.
Larger, well-capitalized LPs will also attempt to create a presence in spaces such as the cosmetics market.
When asked about the financial impact cannabis will have on cosmetics, Leifso is sure the plant will become an ingredient in the space rather than a sub-sector within cosmetics.
“It’s a hard number to put down but the way that [Aurora Cannabis will] report it, I’m quite certain, will probably be based on just what were the beauty sales that included those ingredients,” Leifso told INN.
According to Statista, the Canadian cosmetics market will reach US$15.78 billion in value by 2020.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.