Kadenwood Raises $50M to Accelerate Leadership Position in Shaping CBD Into Mainstream Wellness Category

The Craftory, Arcadian Capital and Existing Investors Led the Series B Round as Kadenwood Expands Its Global Presence & Distribution Network with Recent Acquisitions Including Healist Advanced Naturals and Social CBD

NEWPORT BEACH, Calif., June 29, 2021 /PRNewswire/ — Kadenwood, a leading plant-based wellness company dedicated to fostering consumer trust and transparency, has raised $50 million of cash and media value in a Series B fundraising round with global purpose-led investment house The Craftory and Arcadian Capital Management, and follow-on investments from existing investors. Already the largest U.S. supplier of vertically-integrated CBD consumer packaged goods, this latest funding round further accelerates the brand’s mission to normalize CBD in health and wellness products through scale, strategic partnerships and acquisitions.

In just the first half of 2021, Kadenwood has made a number of high-profile acquisitions, including CBD wellness brands Healist Advanced Naturals and Social CBD. Kadenwood’s organic growth and acquisition approach is creating the largest retail CBD distribution network in the United States, including major drug and grocery store chains, increasing consumer access to trusted CBD products. The acquisition of U.K.-based Healist Advanced Naturals will allow Kadenwood to scale quickly providing new retail and e-commerce distribution channels to bring high-quality CBD to consumers globally. The additional acquisition of Oregon-based Social CBD enables Kadenwood to offer a wider array of products to mass-market consumers across a broad range of demographics as they increasingly look to powerful and plant-based solutions for their health.

Kadenwood had a landmark year of growth in 2020, raising $15 million in a Series A funding round followed by the acquisition of EcoGen Biosciences, the leading global manufacturer and supplier of hemp-derived CBD materials and formulations. The deal effectively established Kadenwood as the largest supplier of vertically-integrated, hemp-derived cannabidiol (CBD) in the US, expanding the company’s ability to scale production of its quality-driven CBD products. 

Kadenwood entered the consumer products marketplace in 2019 with a 100% owned seed-to-shelf capability and has grown its family of industry-leading brand portfolio to include LEVEL SELECT™ CBD, in the personal care category, Purity Preferred™ Pet CBD and Purity Organic™ CBD Teas

“Healist has deep, strong foundations in consumer insights, and understands Sleep, Calm and Relief like no other CBD brand. We will continue our partnership with this bold CPG challenger brand by investing in Kadenwood, as we view them as the perfect home for Healist,” explains Elio Leoni Sceti, Co-Founder & Chief Crafter at The Craftory.

“With this new round of funding, we are accelerating our mission of building enduring CBD brands that people trust as being safe and effective, while cementing our position as a leading global, vertically-integrated CBD company,” said Erick Dickens, Co-Founder and CEO of Kadenwood. “This funding round solidifies our ability to execute a $20M media campaign to drive consumer awareness and support our retail partners with these industry leading brands. We’re incredibly excited by the growth ahead for Kadenwood and our family of brands as we focus on scaling and growing our business while helping shape the future of CBD and plant-based wellness.”

For more information on Kadenwood and its products please visit www.kadenwoodbrands.com or contact Kadenwood@bcw-global.com

For more information on The Craftory please visit TheCraftory.io or contact thecraftory@sciencemagic.inc

For more information on Healist please visit https://healistnaturals.com/

For more information on Social CBD please visit https://socialcbd.com/

About CBD
CBD is a non-intoxicating cannabinoid found in cannabis. After tetrahydrocannabinol (THC), cannabidiol (CBD) is the second most abundant cannabinoid in the plant and is believed to have many potential therapeutic benefits.

About Kadenwood
Founded in 2019, Kadenwood is a privately held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains 0% THC. In 2019, Kadenwood launched its first plant-based branded products under LEVEL SELECT™ in personal care. And in late 2020, Kadenwood launched the Purity Preferred™ Pet business, as well as Purity Organic® hot teas, to add to its portfolio of CBD brands.

About The Craftory
Based in London and San Francisco, The Craftory is a $375M global investment house focused exclusively on amplifying the world’s boldest consumer brands. We offer permanent, early stage and growth capital to cause-driven CPG brands that positively impact the categories they serve, society, and the planet. The Craftory is a proud B-Corp.

Kadenwood Expands Global Presence with Acquisition of CBD Wellness Brand Healist Advanced Naturals

Nation’s Top CBD Supplier Partners with UK Wellness Company for Premium Portfolio of Plant-Based Wellness Products

NEWPORT BEACH, Calif., June 23, 2021 /PRNewswire/ — Kadenwood, a leading plant-based wellness company dedicated to fostering consumer trust and transparency in CBD, announced the acquisition of UK-based CBD wellness brand Healist Advanced Naturals. The partnership expands Kadenwood’s premium portfolio of plant-based wellness products focused on all-natural, benefit-driven CBD solutions. The acquisition will allow both companies to scale quickly providing new retail and e-commerce distribution channels to bring high-quality CBD to consumers globally. 

Kadenwood has quickly grown to become the largest U.S. supplier of vertically-integrated CBD, setting the industry standard of quality with its proprietary formulas. The company has furthered its mission of normalizing CBD through strategic partnerships and acquisitions, positioning itself as a trusted partner for brands across categories. Healist is one of the newest brands in-market who quickly gained notoriety for its benefit formulations focused on holistic everyday wellness and sustainability practices. 

The two companies share a like-minded mission to support each consumer’s individual needs with trusted, plant-based wellness products and are backed by leading executives with veteran careers in the CPG space. 

Global beauty and wellness company Present Life has sold its pioneering brand Healist to leading US CBD lifestyle company Kadenwood, in order to further democratise access to Healist’s innovative and nurturing products. In a simultaneous move Present Life owner The Craftory is investing in Kadenwood thereby creating a new partnership intended to disrupt the industry status quo.

“We’re excited to welcome Healist into our portfolio as we look to expand our premium plant-based wellness offerings to consumers globally,” said Erick Dickens, Co-Founder and CEO of Kadenwood. “Kadenwood and Healist share important brand values and we believe they complement our current portfolio bringing a new perspective on wellness that is focused on everyday benefit formulations. It’s imperative that we lead the way for providing transparent, safe and reliable products to consumers and Healist will help us expand that mission.” 

“Kadenwood’s expertise, full vertical integration and ability to support brands with national advertising is unmatched,” said Camillo Pane, Executive Chairman at Present Life. “The exemplary team brings veteran knowledge in the CPG space and provides Healist the support to grow at scale across all channels and markets. We’re thrilled to be partnering with them to bring better access and premium products to the global market.” 

“Healist has deep, strong foundations in consumer insights, and understands Sleep, Calm and Relief like no other CBD brand. We will continue our partnership with this bold CPG challenger brand by investing in Kadenwood, as we view them as the perfect home for Healist,” explains Elio Leoni Sceti, Co-Founder & Chief Crafter at The Craftory.

Healist is an innovative wellness brand with benefit-led formulations designed to restore the body’s innate capacity to heal and defend against the challenges of modern life. The brand product line is focused on four key benefit areas: calm, relief, sleep and well-being. The brands’ pioneering formulations blend efficacious active natural ingredients with U.S grown organic, broad-spectrum hemp extract. Committed to quality and transparency, all Healist products are clean and natural, triple lab-tested, vegan, cruelty-free, non-GMO, and contain 0.00% THC. All Healist products are packaged with sustainable materials including ocean waste plastic, with plans to have 100% of its plastic be Ocean Waste Certified (OWP) by the end of 2021.

For more information on Healist please visit https://healistnaturals.com/

About CBD
CBD is a non-intoxicating cannabinoid found in cannabis. After tetrahydrocannabinol (THC), cannabidiol (CBD) is the second most abundant cannabinoid in the plant and is believed to have many potential therapeutic benefits.

About Kadenwood
Founded in 2019, Kadenwood is a privately held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains 0% THC. In 2019, Kadenwood launched its first plant-based branded products under LEVEL SELECT™ in personal care. And in late 2020, Kadenwood launched the Purity Preferred™ Pet business, as well as Purity Organic® hot teas, to add to its portfolio of CBD brands.

About Present Life
Present Life is a global beauty & wellness company that creates and acquires clean, benefit-led brands with no compromise on performance or the planet.  All Present Life brands are plant-based, planet-friendly and with proven efficacy, spanning different price points and retail settings.

About Healist
Founded in 2020 by Present Life Limited, Healist is led by a diverse team of executives with category-leading expertise in marketing and innovation in the wellness and beauty industry with a mission to bring transparency and credibility to a newly forming category. Already distributed nationally in the US, UK and Brazil, Healist was crafted as a benefit-led brand designed to help defend wellness. All Healist products are clean and natural, triple lab-tested, vegan, cruelty-free, non-GMO and contain 0.00% THC.

About The Craftory
Based in London and San Francisco, The Craftory is a $375M global investment house focused exclusively on amplifying the world’s boldest consumer brands. We offer permanent, early stage and growth capital to cause-driven CPG brands that positively impact the categories they serve, society, and the planet. The Craftory is a proud B-Corp.

Kadenwood Achieves Largest CBD Retail Distribution Network in the US with the Acquisition of CBD Wellness Brand Social CBD

Leading CBD Consumer Package Goods Company Buys Portland, OR Brand to Expand Retail Footprint to 18,000 Stores, Increase Access to High-Quality, Plant-Based Wellness Products

NEWPORT BEACH, Calif., June 16, 2021 /PRNewswire/ — Kadenwood, a leading CBD consumer packaged goods company dedicated to fostering trust and transparency in the mainstream wellness category, announced the acquisition of the Social CBD brand. With this acquisition, Kadenwood will create the largest retail CBD distribution network in the United States, including major drug and grocery store chains, for its premium portfolio of plant-based, benefit-driven wellness products using both broad-spectrum and isolate CBD.

Kadenwood will be the first CBD company to have a portfolio of multiple brands across approximately 18,000 retail stores. Already the largest U.S. supplier of vertically-integrated CBD, this acquisition continues the company’s mission to normalize CBD through strategic partnerships and acquisitions and cements its position as a trusted and safe partner for plant-based wellness brands across categories.

With this acquisition, Kadenwood will create the largest retail CBD distribution network in the United StatesTweet this

Social CBD will add high-quality, lab-tested and certified CBD solutions including topicals, oil drops, gummies, and gel capsules to Kadenwood’s consumer portfolio. Social’s unique product lines targeting a younger demographic enable Kadenwood to offer a wider array of products to mass-market consumers as they increasingly look to CBD wellness solutions for every situation, from work to the gym or at home.

“With the addition of Social CBD to our family of wellness brands, we’re expanding consumer access to a wider variety of high-quality CBD solutions via major retail locations around the United States,” said Erick Dickens, Co-Founder and CEO of Kadenwood. “With its focus on delivering natural, trusted CBD solutions for everyone, Social CBD supplements our current portfolio perfectly. We look forward to bringing Social CBD into the Kadenwood family as we continue our mission to offer the highest quality, plant-based wellness solutions, elevate the CBD industry and strengthen consumer confidence in the category.” 

“As the CBD industry continues to grow, we are excited to see the Social CBD products and brand transitioned to the expertise of the Kadenwood team,” said Nitin Khanna, CEO of Sentia Wellness. “With their expanded reach, deep industry expertise and industry leading CBD extraction they can continue to be on the forefront of 21st century wellness.”

Founded in 2019, Social CBD was a brand of Sentia Wellness and utilizes extensive world-class manufacturing and laboratory analyses that exceed industry standards for optimum customer confidence. Social CBD has created products to give consumers targeted solutions to fit their lives. Whether it is to get better sleep, boost energy, recover efficiently, or level out life’s stressors, Social CBD aims to solve modern life’s problems in an accessible way. Inspired by design, with its signature teal blue box, Social CBD offers a diverse product portfolio from oil drops and topicals, to patches and gummies.

About CBD
CBD is a non-intoxicating cannabinoid found in cannabis. After tetrahydrocannabinol (THC), cannabidiol (CBD) is the second most abundant cannabinoid in the plant and is believed to have many potential therapeutic benefits, including anti-inflammatory, analgesic, anti-anxiety and seizure-suppressant properties.

About Kadenwood
Founded in 2019, Kadenwood is a privately held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains 0% THC. In 2019, Kadenwood launched its first branded products under LEVEL SELECT™ in personal care. And in late 2020, Kadenwood launched the Purity PreferredTM Pet business, as well as Purity Organic® hot teas, to add to its portfolio of CBD brands.

About Social CBD
Founded in 2019, Portland-based Social CBD promises to provide the high-quality Pure, Powerful and Honest CBD products. Social CBD is a brand of Sentia Wellness and utilizes extensive world-class manufacturing and laboratory analyses that exceed industry standards for optimum customer confidence. Social CBD is sparking a movement and global conversation around better self-care and wellness, from education and driving social connections, to making hemp-derived CBD products widely accessible to people from all walks of life.

Kadenwood’s EcoGen Biosciences Acquires Hemp Processing Company, Adding Increased Production Capacity and cGMP Certification


Through Acquisition, the Company Adds a 50,000-Square-Foot Facility with Additional Extraction Capacity and Improved Sustainable Processes

GRAND JUNCTION, Colo., Nov. 12, 2020 /PRNewswire/ — Kadenwood’s EcoGen Biosciences (“EcoGen” or the “Company”), a leading vertically-integrated manufacturer and supplier of hemp-derived specialty ingredients, proprietary formulations, and private-label finished products in the United States, announced today the acquisition of Colorado-based hemp processing and extraction company General Processing LLC (“GP, LLC”). This acquisition will substantially expand EcoGen’s production capacity, adding technological innovations in the areas of sustainability and current Good Manufacturing Practice (cGMP) compliance. This allows the Company to further integrate its own supply chain while servicing domestic and global markets.

Through proprietary internal research and development, paired with innovative process IP included in the acquisition, the Company has advanced its commitment to implement a more sustainable production of raw hemp materials. The newly added facility will remove entire stages of the process, allowing for the reduction of waste through proprietary equipment and processes. As part of its ongoing operational strategic planning, EcoGen has placed sustainability and innovation at the forefront of its strategic expansion plan, looking to remain the industry leader and set the standard for sustainable hemp manufacturing practices.

As a part of the acquisition, the Company has added a 50,000-square-foot production campus in Delta, Colorado, with an additional 165 acres of farming land. The facility recently completed a dietary supplements cGMP inspection for 21 CFR Part 111 certification conducted by ASI on October 4, 2020, which was ahead of the expected schedule and expedited EcoGen’s compliance plan to include dietary supplement certification substantially. This certification will further position EcoGen for future regulatory compliance standards set by various regulatory agencies and allows for its products to meet industry-leading standards for the highest quality products available. The Company looks to develop the facility in the coming months.

Included in its offering are raw hemp materials such as isolate and distillate, custom formulated hemp-derived products and general processing of hemp biomass for use in consumer-facing products of all kinds.

“This acquisition not only expedites the process of garnering cGMP certification for our manufacturing capabilities, but allows us space to introduce our revolutionary new sustainable manufacturing processes while expanding our capacity as we look ahead to 2021 and prepare for increasing demand,” said Garrett Bain, President of EcoGen Biosciences. “As a global, leading vertically-integrated manufacturer and supplier of hemp-derived specialty ingredients, EcoGen values quality, integrity and consistency above all else. In order to maintain this industry-leading position, we continue to take forward-looking steps that will enable our products and processes to continue to meet customer needs as evolving regulatory and health authority standards are applied to the hemp extraction and hemp-derived products industry.

“With this newest acquisition that adds further value to EcoGen’s capabilities, we are positioning Kadenwood to be a global powerhouse of hemp-derived raw materials and consumer products of the highest caliber,” said Erick Dickens, CEO and Co-Founder of Kadenwood. “Through our strategic growth plan, we will continue to evolve as an organization, staying ahead of production and product trends. While many companies have struggled to define their role in this evolving and competitive landscape, Kadenwood has emerged as the industry’s true leader. We are proud to lead in products, manufacturing, innovation, and now, sustainability and compliance. We look to the future with optimism, as we are confident that 2021 and beyond will continue to provide great success and opportunities for Kadenwood companies.”

EcoGen is the lead manufacturing arm of Kadenwood, LLC, a consumer seed-to-shelf CBD company dedicated to fostering trust and transparency in the mainstream wellness category, after its recent acquisition. The Company supplies the raw hemp materials for use in Kadenwood’s CBD products, as well as many other brands across North America and Europe.

For more information on the Company and its products please visit https://kadenwoodbrands.com/. For more information on EcoGen including information on becoming a customer, please visit https://ecogenbiosciences.com/.

About Kadenwood, LLC
Founded in 2019, Kadenwood is a privately held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically-integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains no THC. In 2019, Kadenwood launched its first branded products under LEVEL SELECT™ in personal care.

About EcoGen Biosciences
EcoGen Biosciences (EcoGen) is the leading vertically-integrated manufacturer and supplier of hemp-derived specialty ingredients in North America. Using proprietary equipment, processes, and formulations, EcoGen has developed a broad range of the highest quality ingredients and customized formulations for a broad range of industries. Founded in 2016, EcoGen is the first seed-to-sale CBD manufacturer, known for manufacturing the purest CBD raw materials and finished products. The company is also a leader in international distribution with CBD isolate, water-soluble CBD (Nano), and THC-free CBD distillate. As the leader in hemp genetics, EcoGen promotes sustainable agriculture, using its proprietary processing and extraction technology to ensure the highest quality products at the lowest price making cannabinoids more accessible to the world.

Public Relations Contact:
Brian Price
CMW Media
brian@cmwmedia.com
(609) 206-1812

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SOURCE Kadenwood, LLC

Purity Preferred™ Pet CBD Products Now Available Nationwide


Kadenwood, LLC and Purity Organic® Debut Premium Line of Calming and Hip & Joint CBD Oils

NEWPORT BEACH, Calif., Oct. 15, 2020 /PRNewswire/ — Kadenwood, LLC, a leading consumer seed-to-shelf CBD company dedicated to fostering trust and transparency in the mainstream wellness category, announced today the launch of a new Pet-specific brand, Purity Preferred, in partnership with established organic food and beverage brand Purity Organic. Purity Preferred is the first of several planned collaborations, and marks the first entry by both brands into the Pet Care space.

Purity Preferred was created with canine and feline well-being at the forefront of the development process, and formulated using a blend of Kadenwood’s proprietary Broad Spectrum CBD oil and active anti-inflammatory ingredients Moringa Oil and Krill Oil. Purity Preferred Hip & Joint CBD Oils also feature Copaiba, an essential oil known to help reduce symptoms of arthritis. The two benefit-focused formulations are available in a range of potencies, allowing pet-owners to select a product to suit their needs based on the size of the pet.

Purity Preferred Calming CBD Oil Drops offer the calming and stress-relieving benefits of CBD in four chicken-flavored doses:

  • 100mg CBD ($49.99) for small dogs and cats (up to 20lbs)
  • 300mg CBD ($69.99) for medium dogs (21 to 40lbs)
  • 600mg CBD ($79.99) for large dogs (40 to 60lbs)
  • 900mg CBD ($89.99) for extra-large dogs (60+ lbs)

Purity Preferred Hip & Joint CBD Oil Drops help reduce inflammation and help improve mobility in three bacon-flavored doses:

  • 300mg CBD ($69.99) for medium dogs (21 to 40lbs)
  • 600mg CBD ($79.99) for large dogs (41 to 60lbs)
  • 900mg CBD ($89.99) for extra-large dogs (60+ lbs)

“Kadenwood’s industry-leading innovation and quality standards have allowed us to create formulas worthy of the Purity name. We built the brand from the ground up, with safety and efficacy in mind,” said Cristina Weekes, President of Kadenwood Pet. “The launch of Purity Preferred ensures our consumers’ pets have access to the same quality CBD as our Kadenwood brands, in a range of products that allows pet owners to choose a personalized potency to meet their pet’s needs.”

The Purity Preferred brand will be led by Cristina Weekes, President of Kadenwood Pet, who brings over a decade of pet category experience and twenty years of leadership in the CPG space. In addition, Scott Link will join the Kadenwood Pet team as VP of Sales, bringing nearly three decades of consumer products sales, marketing and management experience with leading CPG organizations. Focused exclusively on the pet space for the last 10 years, Scott’s experience also includes retail sales, trade marketing and distribution channel development across Pet Specialty, Independent Pet, Food & Drug, Mass Market, Club, and Natural sectors.

“We’re excited to bring the benefits of our industry-leading CBD to an entirely new category with the launch of Purity Preferred,” said Erick Dickens, CEO and co-founder of Kadenwood, LLC. “Cristina and Scott are veterans in the pet care space and were able to ensure we developed a line of quality products that meet real consumer needs, reflecting our commitment to maintaining trust and transparency in the CBD sector along with the standards of wellness associated with the Purity brand.”

Purity Preferred Hip & Joint CBD Oil and Purity Preferred Calming CBD Oil are available now on www.puritypreferred.com.

To learn more about Kadenwood and follow news about its farms and soon-to-launch branded products, please visit http://kadenwoodbrands.com.

About CBD
CBD is a non-intoxicating cannabinoid found in cannabis. After tetrahydrocannabinol (THC), cannabidiol (CBD) is the second most abundant cannabinoid in the plant and is believed to have many potential therapeutic benefits, including anti-inflammatory, analgesic, and calmative properties.

About Kadenwood, LLC
Founded in 2019, Kadenwood is a privately-held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically-integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains no THC. In Fall 2019, Kadenwood launched its first branded products under LEVEL SELECT™ in personal care.

About Purity Organic
Purity Organic is an organic beverage company based in Oakland, CA focusing on better for you products. At Purity Organic, we think organic and delicious is the way we should all be able to drink. At a price we can all feel good about.

SOURCE Kadenwood, LLC

CBD Company Kadenwood Brands Bets on Vertical Integration for Long-Term Success


Exclusive Interview with Kadenwood Brands Co-Founder and CEO Erick Dickens

Kadenwood Brands has two sides to its business: consumer brands and bioscience. Through the recent acquisition of EcoGen Laboratories, the company has become vertically integrated. Co-Founder and CEO Erick Dickens spoke with New Cannabis Ventures about developing the company’s brands, the importance of vertical integration and funding. The audio of the entire conversation is available at the end of this written summary.

Consumer Goods Experience

Dickens had a career in the Army, flying Blackhawk helicopters and reconnaissance planes, before shifting tracks and entering the consumer goods space. He has worked with companies like Kraft Foods, Henkel and LifeLock. Most recently, he was the Chief Marketing Officer for King’s Hawaiian.

While coaching Little League, he started to have a conversation about the CBD space. Eventually, he and fellow co-founders Brian Newberry and Doug Weekes formed Kadenwood Brands. Chief Strategy Officer Newberry has a background in financial technology and the hemp industry. Chief Operating Officer Weekes previously headed up the beverages division at Kraft, actually hiring Dickens out of the military.

Executive Chairman Todd Davis was the Co-Founder and CEO LifeLock. He guided the company through its IPO and its $2.3 billion sale to Symantec.

Vertical Integration

Kadenwood Brands is headquartered in Newport Beach, California. It also has farming operations in the state through a joint venture with Munger Farms. With the acquisition of EcoGen, the company also owns farming operations in Grand Junction, Colorado.

The Kadenwood Brands Headquarters in Newport Beach, California

While some other companies in the space have decided against vertical integration, Dickens sees it as an advantage due to quality control and cost of business. Right now, CBD prices are high compared to other consumer products, but Dickens sees consumer and retailer demand driving that price down over time. When that happens, he expects companies that rely on third-party suppliers will struggle to compete with those that are vertically integrated.

Inside the EcoGen Facility, Recently Acquired by Kadenwood Brands

Market Reach and Distribution

The company has a national reach with its consumer products. On the bioscience side of its business, it uses the product it’s producing in its own goods and sells to customers in the U.S. Europe and South America.

Right now, the company is focused on opportunities primarily in the U.S. Its consumer goods products have a direct-to-consumer presence, but the company is working on growing its retail distribution. It has products in grocery retailers, including Food Lion, Giant, Hannaford and some other grocery retailers in the Northeast. Kadenwood Brands has plans to expand to other national retailers this year and into 2021, according to Dickens.

The company was not heavily focused on national retail when the COVID-19 pandemic began. Many brands that were in retail outlets struggled, as consumer buying patterns shifted, according to Dickens. Now, that trend is shifting.

Kadenwood Brands has seen an uptick in its direct-to-consumer business, but in the early days of the pandemic supply chain disruptions presented a challenge, which the company has since overcome.

Brand Portfolio

Right now, the company has two main brands: Level Select CBD and Purity. Level Select is a performance-based brand. A number of celebrity athlete ambassadors support the brand, including former Los Angeles Dodgers player Steve Garvey, former NFL quarterback and Heisman Trophy winner Carson Palmer, PGA Tour champion Rickie Fowler and Ann Meyers-Drysdale, the first woman to be inducted into the NBA Hall of Fame.

Level Select is Kadenwood Brands’ Performance-Based CBD Brand.

The Purity brand has a number of different varieties. Purity Organic is largely reserved for food and beverage items, while Purity Preferred focuses on the pet market segment and Purity Self addresses personal care.

Former Surgeon General Richard Carmona, MD, MPH, and Aaron Przybysz, MD, PhD, help to guide the company’s product development, particularly sharing insight into the necessary CBD levels for product efficacy.

Kadenwood Brands also helps its brands stand out in the competitive CBD space through advertising. The company has more than 50 percent of the voice in the CBD industry through its advertising efforts, according to Dickens. It also has plans to announce a significant media deal with a major network in the near future.

Regulatory Landscape

The company is encouraged by signs from regulatory bodies, according to Dickens. Kadenwood Brands has direct conversations with regulators to ensure it can help offer support in policy decisions and be prepared for any regulatory changes.

Funding

Kadenwood Brands initially sought to raise $10 million through its Series A, led by Executive Chairman Todd Davis. The company ultimately oversubscribed the raise at $15 million. It also did a Series AA targeting $7 million. This round was oversubscribed at just under $10 million. The company now has the ability to raise the limit on its Series AA to $15 million, according to Dickens. This will help to support the growth of the EcoGen asset and the building out of inventory and retail operations.

Of the capital the company has raised thus far, it has deployed roughly $18 million, according to Dickens. This has primarily gone to consumer advertising, building out the company’s team and investment in new product SKUs.

The company is now gearing up for its Series B. Though some companies are interested in working with SPACs, Dickens does not see this route for Kadenwood Brands. Rather, he sees the company working with institutions. Thus far, it has attracted high-net-worth individuals and family offices. A few institutions participated in the Series AA round as well.

Growth in 2020 and Beyond

When raising its Series A round, the company forecasted $30 million in revenue for 2020. Kadenwood Brands made some adjustments to manage challenges, such as price compression on the bioscience side of its business, and it will slightly over-deliver on its revenue expectations for the year, according to Dickens.

In 2021, Dickens expects the bioscience side of the business to remain  relatively flat, while retail expansion and new customers attracted by national advertising will be major growth drivers.

Product repeat is one of the company’s key metrics. A significant indicator of a successful company is the ability to generate repeat customers, and Kadenwood Brands has a repeat rate of nearly 40 percent, according to Dickens. The company is also focused on delivering contribution margins to generate cash and continue investing in the business.

Like many companies, Kadenwood Brands is challenged with scaling to match the growth opportunity in the industry. The company is focused on developing the infrastructure it needs for product manufacturing consistency on the biosciences side and expansion on the consumer products side.

To learn more, visit the Kadenwood Brands website.

Listen to the entire interview:

https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/898954690&color=ff5500

Kadenwood Committed to Improving Its Brand and the Industry


Newport Beach, Calif. – Kadenwood LLC is quickly establishing itself as one of the largest U.S. vertically integrated suppliers of hemp-based CBD.

Kadenwood last month boosted its capacity to produce high-quality hemp-delivered ingredients and raw materials with the acquisition of EcoGen Laboratories, a large-scale manufacturer using hemp grown with sustainable farming practices. With the deal, Kadenwood aims to advance its mission of elevating the CBD industry and bolstering consumer confidence in the wellness category.

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Kadenwood, LLC, Acquires EcoGen Laboratories Becoming Largest Vertically-Integrated Supplier of Hemp-Based CBD


Seed-To-Shelf CBD Company Continues Mission of Elevating Industry and Increasing Confidence of Mainstream Wellness Consumers

NEWPORT BEACH, Calif., Aug. 20, 2020 /PRNewswire/ — Kadenwood, LLC, a consumer seed-to-shelf CBD company dedicated to fostering trust and transparency in the mainstream wellness category, announced today the acquisition of EcoGen Laboratories, the leading global manufacturer and supplier of hemp-derived CBD materials and formulations. The deal effectively establishes Kadenwood as the largest supplier of vertically-integrated, hemp-derived cannabidiol (CBD) in the US, expanding the company’s ability to scale production of its quality-driven CBD products.

EcoGen is the world’s first large-scale manufacturer of hemp-based ingredients and raw materials, using sustainable farming practices to ensure quality CBD products are accessible to mainstream consumers. The company generated over $63M in revenue in 2019 through the sale of its CBD to private label brands and retailers and closed on $40M in private funding earlier this year to expand its global footprint.

The CBD industry is currently rebounding from the effects of the COVID-19 pandemic, with consumer demand steadily increasing. The acquisition allows EcoGen to take advantage of Kadenwood’s distribution channels while leveraging the expertise and oversight of its executive leadership team. Backed by decades of branding and management experience in the consumer packaged goods space, Kadenwood is well-positioned to maximize EcoGen’s business and lead this recovery while setting the standard for quality, safety and how to scale successfully.

“We’re committed to improving not just our brand, but the perception of our industry overall, and that starts with ensuring consumers have access to quality CBD products they can trust,” said Erick Dickens, CEO and Co-Founder of Kadenwood, LLC. “EcoGen has maintained a commitment to producing sustainable and consistent CBD and we’re happy to bring them under the Kadenwood brand as we expand our offering of exceptionally pure CBD products that continue to set the industry’s standard of quality.”

In addition to investing capital, executive expertise and infrastructure support for EcoGen’s operations in the Grand Valley, CO, region, Kadenwood has appointed its Chief Commercial Officer, Garrett Bain, and VP and General Manager, Jason Waggoner, to EcoGen’s executive team. They will relocate to its Grand Junction, CO, headquarters and focus on strategically scaling the staff and business operations supporting EcoGen’s sales, manufacturing and processing capabilities. EcoGen will sit under Kadewnood’s agricultural vertical, Kadenwood Biosciences, and will be re-branded as EcoGen Biosciences as a wholly owned Kadenwood subsidiary.

The deal is the latest in Kadenwood’s mission to elevate the CBD industry and bolster consumer confidence in the wellness category. Since its launch, Kadenwood has been working to bridge the gap between the high-growth CBD industry and institutional stakeholders. The company continues to redefine relationships between traditional farming operations, supply companies and mainstream consumer products brands, while ensuring industry leading quality standards are upheld.

Kadenwood offers consumers innovative ways to experience the benefits of CBD across a portfolio of personal care products under the LEVEL SELECT and Purity Organic brands. Its proprietary CBD is developed to the highest standards of quality and potency, without any THC (tetrahydrocannabinol), and created through Kadenwood’s unique vertically-integrated, seed-to-shelf production technology.

About CBD
CBD is a non-intoxicating cannabinoid found in cannabis. After tetrahydrocannabinol (THC), cannabidiol (CBD) is the second most abundant cannabinoid in the plant and is believed to have many potential therapeutic benefits, including anti-inflammatory, analgesic, anti-anxiety and seizure-suppressant properties.

About Kadenwood, LLC
Founded in 2019, Kadenwood is a privately held consumer products lifestyle company relentlessly focused on shaping CBD into a trusted and safe mainstream wellness category. To drive this mission, Kadenwood is backed by decades of CPG marketing and category innovation expertise and industry-leading, vertically-integrated CBD farming to ensure quality CBD oil from seed-to-shelf that contains no THC. In 2019, Kadenwood launched its first branded products under LEVEL SELECT™ in personal care.

About EcoGen Laboratories
EcoGen Laboratories (EcoGen) is the leading vertically-integrated manufacturer and supplier of hemp-derived specialty ingredients in North America. Using proprietary equipment, processes, and formulations, EcoGen has developed a broad range of the highest quality ingredients and customized formulations for a broad range of industries. Founded in 2016, EcoGen is the first seed-to-sale CBD manufacturer, known for manufacturing the purest CBD raw materials and finished products. The company is also a leader in international distribution with CBD isolate, water-soluble CBD (Nano), and THC-free CBD distillate. As the leader in hemp genetics, EcoGen promotes sustainable agriculture, using its proprietary processing and extraction technology to ensure the highest quality products at the lowest price making cannabinoids more accessible to the world.

Kadenwood Buys EcoGen, Aims To Become Largest Supplier Of Hemp-Based CBD


Consumer CBD brand Kadenwood has aquired EcoGen Laboratories, a manufacturer specializing in hemp-derived CBD.

The deal, Kadenwood said, grants the Newport Beach, California-based startup ownership of all stages of product development, from the genetic makeup of seeds to the potency of the final product on store shelves.

The price tag of the deal was not disclosed.

EcoGen generated over $63 million in revenue last year through sales of its CBD materials to white label brands.

Kadenwood closed on $15 million in capital earlier this year and is raising a Series B funding round at a $180-million valuation. The company expects to reach $30 million in revenue by the end of 2020.

Kadenwood CEO Erick Dickens spoke with Benzinga about the transaction, what made EcoGen a valuable target, the company’s advertising goals and whether there will be more M&A on the horizon.

BZ: What makes the EcoGen acquisition crucial at this time?
Dickens: Kadenwood is determined to be the industry’s leading vertically integrated consumer goods company, and the EcoGen acquisition completes our genetics-to-shelf capability.

There were plenty of potential targets for Kadenwood. The EcoGen brand is known globally for providing exceptionally high quality isolate at competitive pricing. EcoGen is recognized as one of the early leaders of CBD processing and is the only major processing company not to experience a bankruptcy filing this year.

Was the deal impacted by the COVID-19 pandemic?
No. The deal was negotiated privately by both companies and nothing related to the pandemic impacted the transaction. Kadenwood was introduced to the EcoGen leadership after withdrawing a bid on another company with a similar capability. The Kadenwood and EcoGen principals negotiated and closed the deal directly.

How is the CBD industry rebounding from the effects of coronavirus?
The industry is experiencing a resurgence of growth both on the consumer goods and ingredient sales sides of the business as economic stability returns. There is a great deal of consolidation starting, as some early movers in the industry faced a cash crunch as a result of the economic turmoil caused by the pandemic.

The companies with strong leadership, solid business models and access to cash are able to lead the industry forward.

In what ways is Kadenwood elevating the CBD space?
In addition to leading the industry in quality and ingredient source transparency, Kadenwood is providing much-needed consumer product advertising and education. Already the industry’s largest national advertiser, Kadenwood is set to increase advertising spending to help educate consumers by over $10 million annually.

How does the EcoGen deal illustrate its efforts?
EcoGen is the quality and cost leader in CBD ingredients. The EcoGen deal makes Kadenwood the largest vertically integrated consumer products company with full control over genetics, seeds, farming and processing of the CBD ingredients.

What’s next for Kadenwood?
Kadenwood will continue to grow consumer awareness and household penetration of its Level Select and other consumer products. Kadenwood is committed to creating and building the leading consumer brand in the industry. Kadenwood is [also] currently exploring additional brand and biosciences acquisitions to improve our capabilities and portfolio consumer product offerings.

There are several quality companies in the industry that may be unable to survive without scale. This will lead to more M&A as industry consolidation continues. 

Private Company Showcase: Kadenwood Holdings


We hosted Erick Dickens, CEO of Kadenwood Holdings, at a virtual fireside chat this week as part of Needham’s Private Company Showcase Series. Kadenwood is a privately held, CBD focused company, founded and run by a team with decades of innovation and marketing experience running large, well-known consumer brands. Our overarching conclusions from this event are that 1) category growth rates should remain exceptional, but expect a high level of capacity exit with category ‘winners’ likely emerging over the next 12-18 months. 2) DTC (online sales direct-to-consumer) sales might be sufficient to stabilize operations for the larger CBD players, but the category winners will likely be determined at retail.

Poor CBD category performance in ’19 at retail means that brands without the marketing dollars to support advertising and promotion are unlikely to achieve distribution. 3) The 2018 Farm Bill created a hemp and extraction boom in early ’19 that resulted in a bust by early ’20. Lack of quality biomass and extraction capacity will likely be an issue not resolved until at least ’21.

What do we think Kadenwood is doing differently / where will it fit into the CBD category?

  • Experience doesn’t ensure success, but it increases the probability of success materially: The company was founded by a team with significant experience in branding and marketing at large CPG companies. We think the depth of this commercialization and category development experience will set Kadenwood apart among retail merchants that were burned by weak product performance in a high growth category in the 1st wave of CBD products sold.
  • Level of marketing spend: Kadenwood already spends the most on advertising in the CBD space, which helps with brand awareness, drives revenues in its DTC business, and increases interest from big box merchants. National reach radio and athlete endorsements helped increase brand awareness in 1H. A $10mn deal with a major media company for a national TV campaign later in ’20 will represent a material step up in spend and will likely continue to separate Kadenwood’s brands from competition.
  • Vertical integration limits business risk related to ’boom’ and ‘bust’ reverberations in farming and extraction: Over the near-term, inconsistency in production and ingredient quality provide an opportunity to vertically integrate the supply chain. While the overarching focus is on building brands, Kadenwood is in the process of acquiring assets that will enable them to control everything from seed to shelf (proprietary genetics, farming, extraction, production and then sale through its DTC channel or retail). While we do not expect the CBD category to be vertically integrated over the long-term (virtually no CPG businesses are), this will likely be a cost advantage over the near-term, or at a minimum, shifts or mitigates 3rd party supply chain risk to something under Kadenwood’s control. Despite declines in the price of hemp biomass and isolate, CBD is still the most expensive input. Owning the supply chain could materially lower production costs and provide margin cushion should category price points continue to fall, or provides flexibility to invest in promotional spending to support its brands at retail.

At present the CBD category is high growth, but highly fragmented; a wave of consolidation and marginal capacity exit of brands is very likely to occur. We [Needham] estimate that U.S. hemp derived CBD sales were $1.8B in 2019, will likely reach $3-3.5B in 2020, and the category in the U.S. will likely exceed $10B by 2023. Kadenwood expects the U.S. CBD category will reach $15-20B by 2025. Globally, the size of the CBD category is difficult to forecast because of regulatory differences and potential changes to those regulations, channel development, use cases, and customer acceptance of the category. Per Brightfield Group, there over 3,000 companies selling CBD in the U.S. today and 90%+ of these companies have annual revenue <$1mn. It is extremely unlikely that the vast majority of these brands are profitable or have prospects of being profitable with revenue at the <$1mn level, and we expect many, if not most, of these small brands will likely exit the category. By comparison, Kadenwood’s DTC business is “in the multi-millions” and topline revenue is on pace to be “in the tens of millions” in ’20. Disruptions related to COVID are likely accelerating the pace of consolidation / marginal capacity exit.

Early stage industries often experience growing pains along the supply chain and the CBD category is no different. In the U.S., the 2018 Farm Bill allowed farmers to grow hemp for the first time in decades. In 2019, ~500k acres of hemp were licensed, 230k were planted, 125k were harvested, and underlying demand was probably 25-50% of harvested acreage. This overplanting caused biomass prices to drop from >$35/lbs in late ’18 to <$8/lbs in ’19. The company expects a reduction in planted and harvested hemp acreage in ’20, but thinks it could be a few years before larger efficient farmers stabilize pricing and increase quality. Despite significant investment in processing capacity in ’19 by the industry, demand didn’t materialize and much of the investment in extraction equipment never came online. As such, processing will likely remain a choke point for the industry. Large CPG companies are not involved in the category right now, and are unlikely to enter until regulatory clarity is provided by the FDA.

Larger CBD companies have found most success with a DTC model (direct-to-consumer), while product sold at retail has generally not fared well. Early mover brands that achieved retail distribution generally failed to invest in advertising to build the brand or support the product on shelf, and as a result, the early mover brands haven’t lived up to the expectations of retailers. In some cases, when the product performed poorly, the merchant or retailer mindset was often to replace a poorly performing product line with a new product line with the same lack of brand support. Retail closures related to COVID stay-in-place orders and limited consumer desire to leisurely shop likely exacerbated CBD category issues in retail. Of the larger national or regional big box retailers that carry CBD, we‘d estimate that the majority of distribution is with fewer than 20 brands. As poorly performing brands are replaced with fewer, but better supported product lines, we would expect Kadenwood to be among those best positioned to gain distribution with these retailers.

Lower price points and higher levels of ad spending are critical for mass adoption. Kadenwood sees a declines in retail unit pricing and higher levels of advertising spend as critical to drive package velocities to levels that where retailers would keep the product on shelf. Advertising and marketing are needed to educate consumers and build awareness. National reach radio has been an effective medium for them in through ’20, but expects to have a $10mn national TV campaign later in the year. Price points at retail will need to be sub-$40 to make it on the shelf with most major retailers (need both entry priced product for trial, and larger pack sizes for repeat), with most retail pricing likely to fall in the $10-25 range over time.

FDA guidance remains an overhang and will likely limit growth of non-topical product. The lack of clear guidance from the FDA puts the onus on the consumer to figure out what is appropriate on their own. For now, the industry needs to continue to invest in research on CBD and use this to help inform the FDA to shape policy. Over time, the company expects the FDA to issue guidance on dosage on ingestible CBD, but expects this guidance to likely be several years out. Kadenwood has Former Surgeon General Dr. Richard Carmona on its medical advisory board. On the margin, this affiliation likely helps to shape internal product development and formulation, lends credibility to the brand in terms of quality, and will likely be an important voice as regulators assess rules for the category.