Peakbirch Logic has acquired Stul Ltd and its ‘Hot Box Herb’ brand – a leading cannabis accessory shop and e-commerce website in Essex – in a move that will accelerate its goal to expand cannabis sales to the UK market.
Vancouver-based PeakBirch Logic, which transforms ‘niche websites into Brand Power Houses’, has closed the acquisition of London-based Stul Ltd – acquiring Hot Box Herb’s own organic branded CBD, named New Era Wellness, as part of the transaction.
Expanding into the UK
Hot Box Herb based in Chelmsford, Essex, has generated over £1m in revenue since its opening just over three years ago and has seen e-commerce sales grow by 149%.
PeakBirch says the shop will help it establish a foothold in the UK market with a retail store in a premium location, and that it is well-positioned to capitalise on the growing market, expanding CBD sales with foot traffic to retails stores which is expected to increase as COVID-19 restrictions are lifted.
Key personnel retained in the deal will provide insights into the local market and provide staff knowledge for marketing initiatives.
The New Era Wellness brand consists of a product line of topicals, edibles and flowers and is one of Europe’s premier consumer CBD companies, with 150% year-over-year sales growth and an average gross margin of 200%.
Marc Mulvaney, CEO of PeakBirch, said: ”This acquisition is the first stepping stone we felt we needed to take to establish a foothold in the UK using the Hot Box Herb brand.
“We are very excited to be welcoming our new experienced team members to the PeakBirch family. With the new addition of a brick and mortar store, this allows PeakBirch to run beta tests on their same-day delivery platform that is planned to be resold to other businesses.”
PeakBirch aims to increase the value of the New Era brand by expanding brand coverage and products to more stores and online retailers and increasing B2B sales.
Peakbirch says the deal provides an excellent growth opportunity to expand the family of PeakBirch services and products across Europe.
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