Puration Inc. (OTCMKTS:PURA) has announced that following the legalization of hemp by the passing of the 2018 Farm Bill they expect the demand for hemp infused drinks to increase significantly. The Farm Bill is seeking declassification of hemp as a drug, which was passed by Congress and it is waiting for presidential assent.
Developments in hemp business
PURA has been producing drinks infused with CBD derived from hemp for the past two years and for the last twelve months they approximated their revenue at close to $1 million which reflects over 400% growth. The company is licensed to deal with the process of extraction of cannabis with their established EVERx hemp infused sports water that is doing well in the market.
The company has been making announcements each week about the progress they are making regarding signing new distribution contracts. The management expects the company to make more deals towards in the coming months.
Competition in production for hemp infused drinks
Although there is market talk about CBD-infused beverages that different competitors intend to make, Puration has taken the lead as they have been in business for two years already, in anticipation of legalization that is now occurring. According to the CEO, Brian Shibley, being in the market for two years gives them an advantage in the manufacture and distribution of CBD-infused drinks because of their understanding of the market. The CEO adds that their brand recognition and experience gives them a head start compared to the companies that are producing for the first time who are responding to the demand surge in CBD-infused drinks after the passing of the Farm Bill that legalizes hemp farming.
Puration is expected to start 2019 with projected sales of around $1 million in addition to new private label agreements that are approximated to be $1 million. After President Trump signs the bill to legalize hemp farming, come 2019 Puration expects the market demand for their hemp-derived CBD infused drinks to increase considerably.
