Shares of Charlotte's Web Holdings (CWBHF 0.65%) got off to a brisk start on Tuesday, rising by almost 6%, before settling down to trade more or less sideways in the late afternoon. This followed the cannabidiol goods specialist's latest product announcement.
Tuesday morning, Charlotte's Web unveiled three new CBD gummy offerings: Daily Wellness, THC-Free, and Immunity.
Their names basically give away their games. Daily Wellness, which is available in 15 milligram or 25 milligram CBD strengths, is aimed at supporting a healthy lifestyle.
THC-Free contains no traces of tetrahydrocannabinol, the substance in cannabis that gets a user high. Like Daily Wellness, it comes in 15 milligram or 25 milligram CBD options. Immunity contains vitamins C and D3 in addition to 10 milligrams of CBD.
The 15 milligram CBD formulations of Daily Wellness and THC-Free, and the sole 10 milligram CBD formulation of Immunity cost $44.99 per 60-count container. The 25 milligram versions of Daily Wellness and Immunity will set a customer back $69.99.
In its press release trumpeting the new products, Charlotte's Web quoted CEO Deanie Elsner as waxing enthusiastic about their format. She said that "gummies provide a convenient and flexible CBD delivery format for consumers and represent one of the fastest growing hemp wellness product categories in the industry."
"After launching in 2019, Charlotte's Web gummies continue to receive overwhelmingly positive feedback from consumers," she added.
It seems investors were initially enthusiastic about Charlotte's Web in the immediate wake of the announcement. After all, it's always good to see a retail-facing company expanding and/or refreshing its product lineup.
However, that interest might have been tempered with the sobering realization that Charlotte's Web has consistently posted bottom-line losses of late. That's not unusual for businesses in the cannabis sector, but at this point investors might be growing weary of seeing all that red ink.