Cronos Group took a big step into the U.S. recently with its acquisition of hemp-derived CBD brands and assets owned by California-based Redwood Holding Group.
Altria’s $1.8-billion investment in Cronos Group stood out last year, comparable in scope only to Constellation Brands’ nearly $4-billion investment in Canopy Growth. The industry can see how the Constellation move has evolved; Canopy Growth is in the midst of a cross-border merger with Acreage Holdings (contingent on some form of cannabis legalization in the U.S.). For the Altria-Cronos investment, which closed in March 2019, the path ahead has become clearer with the Redwood news.
Redwood is a hemp-derived CBD retailer known for its Lord Jones brand of CBD skincare lotions and oils sold at Sephora. Robert Rosenheck and Cindy Capobianco, husband and wife, started Lord Jones in 2015. They’ll join Cronos Group upon completion of this acquisition.
“Rob and Cindy have built a differentiated, best-in-class platform with hemp-based CBD formulations that stand for quality and consistency,” said Mike Gorenstein, Cronos Group’s chairman, president and CEO. “Our goal is to preserve the integrity of all Rob and Cindy have created, while also learning from them and leveraging Cronos Group’s resources to capitalize on the significant demand for skincare and other consumer products derived from hemp. Leading the industry forward responsibly and being a part of the conversation with industry stakeholders remains a top priority for Cronos Group in this evolving area.”
Published: August 07, 2019