The largest grocery retailer in the United States is now selling Charlotte's Web Holdings' (OTC:CWBHF) (TSX:CWEB) topical cannabidiol (CBD) products. Cannabidiol is a non-psychoactive component of cannabis that's best known for its perceived medical benefits.
The market leader in hemp-derived CBD extract products said on Monday that Kroger (NYSE:KR) has begun selling its goods in multiple states. Moreover, the supermarket chain plans to roll out those CBD products to a total of 1,350 stores in 22 states. The deal represents Charlotte's Web's largest distribution agreement through a single retailer.
"Since its founding, Charlotte's Web has been on a mission to make CBD products available for as many people as possible," CEO Deanie Elsner said in a press release. "This distribution reach through Kroger's market-leading network of grocery stores is an enormous contributor to our mission.
Kroger becomes the fifth mass retailer to carry Charlotte's Web hemp-based CBD products. Together with specialty retailers, the company's retail distribution footprint in the U.S. now exceeds 8,000 locations.
"We are very appreciative of Kroger and all of our channel partners for the continued progress in expanding access to hemp-based health and wellness products," Elsner said.
CBD sales are projected to grow to nearly $24 billion in the U.S. by 2023, according to market research company Brightfield Group, up from approximately $5 billion in 2019.