Being a celebrity doesn't guarantee success. Parent company Cronos Group has shut down actress Kristen Bell's CBD skincare brand Happy Dance after just two years in business.
WHO: In October 2020, actress Kristen Bell launched Happy Dance skincare with CBD edibles and skincare brand Lord Jones, backed by Ontario-based Cronos Group. The goal was to create an accessible brand targeting suburban moms with distribution at retailers like Ulta, CVS, T.J. Maxx, Marshalls, and HomeGoods.
Cronos Group is an innovative vertically integrated global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology, and product development. With a passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Group's portfolio includes Peace Naturals, a global health and wellness platform, and two adult-use brands, Cove and Spinach.
WHY: Cronos Group has been exiting wholesale in its US segment, including prestige brands. Lord Jones pointed out in its recent financial report that the true cannabis demand lies in edibles containing THC. The company is realigning with a "phased exit of the wholesale beauty category to focus the portfolio on adult-use product formats within the direct-to-consumer channel."
IN THEIR OWN WORDS: "We are also refocusing the U.S. business to prioritize hero SKUs while leaning into adult-use product formats and concentrating on the direct-to-consumer channel. Although early in the repositioning of our U.S. business, we are confident the new strategy will improve our bottom-line while maintaining brand equity that we can leverage into cannabinoids beyond CBD, and in the U.S. THC market once regulations permit," said Cronos Group's Q3 2022 financial report.
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