CBD leader CV Sciences jumps 10% on Kroger deal to sell CBD oil in 17 US states

Zack Guzman - finance.yahoo.com Posted 5 years ago
image

The parent company behind the top-selling brand of hemp-derived CBD oil on the market just inked a big deal with Kroger (KR).

Las Vegas-based CV Sciences (CVSI) announced Wednesday that its CBD oil will be sold in 945 Kroger-owned stores spanning 17 U.S. states.

CV Sciences shares, which trade over the counter in the U.S., jumped 10% in afternoon trading. The company previously announced a separate deal with CVS Health (CVS) in May to sell its CBD-infused balm in a limited amount of stores.

Kroger now joins a growing list of national retailers that have warmed to adding CBD products to store shelves. Walgreens Boots Alliance (WBA) also announced earlier this year that it would sell CBD products in some of their stores.

“Kroger, CVS Pharmacy, and other leading national retailers are keenly aware of the increased consumer demand for hemp-based CBD products and they are partnering with CV Sciences because of our unwavering commitment to safety and quality,” CV Sciences CEO Joe Dowling said in a statement.

In a March interview with Yahoo Finance, Dowling hinted his company’s second-best 11% market share, as measured by CBD research firm Brightfield Group, could see a boost from looming agreements with national retailers.

“Several years ago, we were one of a handful of companies that were really developing this product category,” Dowling said at the time. “Now, there are hundreds that have been able to kind of pop up out of nowhere and there are a lot of bad actors and a lot of get rich quick schemes.”

Dowling is slated to provide more information on the Kroger partnership during a “First on Yahoo Finance interview” Thursday on YFi PM at 1 p.m. ET.

Zack Guzman is the host of YFi PM as well as a senior writer and on-air reporter covering entrepreneurship, startups, and breaking news at Yahoo Finance. Follow him on Twitter @zGuz.

Read the latest financial and business news from Yahoo Finance

Read more:

Why the Farm Bill could make 2019 the year of CBD

Why the world's largest marijuana company is doubling its plans for US hemp

One of the largest CBD company’s CEO is stealthily backing a hemp plastics startup

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.