Benzinga | Jul 12, 2021 03:59PM EDT

Cannabis Cultivator Flora Growth Teams Up With Distributor Tropi To Reach Colombian Consumers

Cannabis producer Flora Growth Corp. (NASDAQ:FLGC) announced Monday that it's poised to distribute supply food products to Colombia-based Importaciones y Asesorias Tropi S.A.S.

Under an initial one-year deal between Flora Growth's food and beverage division Kasa Wholefoods Company S.A.S. and Colombia's largest food distributor, Tropi, Kasa plans to generate additional CBD and hemp portfolio sales.

Flora Growth projects that the agreement will generate up to $10 million in expected annual sales, with Tropi reaching more than 130,000 distribution points across 38 cities in Colombia.

Jason Warnock, the company's chief revenue officer, called the deal a "significant milestone for Kasa."

"This agreement connects our established premium and sustainable supply chain to significantly more customers and points of consumer distribution, all the while providing dependable, contracted revenue," Warnock added.

Luis Merchan, president and CEO of Flora, said he is proud to team up with Tropi.

"The breadth of their network and experience in working with health and wellness-focused brands will prove invaluable to our expansion strategy," Merchan said. "Their extensive distribution and logistics models, strong selling capabilities, and complementary brand portfolio will undoubtedly increase our ability to reach consumers."

Flora Growth's Recent Moves

Following its debut on Nasdaq Capital Market in May, Flora Growth bolstered its international footprint by entering the United Kingdom and Costa Rica markets.

Under the deal with G.M.D. Latinoam?rica, a Costa Rica-based distributor, the Toronto-based company utilized Kasa Wholefoods division to export its primary brand Mambe to Puerto Limon in April, fulfilling the initial shipment a month later.

Concurrently, Flora finalized an initial shipment of products under the Mind Naturals, Almost Virgin and Mambe brand names to the U.K. as well, representing its first shipment of CBD-infused products into Europe.

Photo by Tim Foster on Unsplash