Dive Brief:
- Moving the business north, CBD skin care and lifestyle brand Lord Jones announced it is exiting the U.S., according to a company Instagram post on Monday.
- The brand — which is owned by parent company Cronos Group — said “farewell” to Instagram followers, noting that it’s taking the brand to Canada until it can return to the U.S. as an adult-use cannabis company. Lord Jones will be launched as an adult-use cannabis brand in Canada in the fourth quarter of 2023, according to a press release from Cronos Group.
- Cronos Group announced on Wednesday that it planned to exit its existing U.S. CBD operations by the end of the second quarter. The cannabis company said the decision was made in order to “improve its cash flow in the near term and position itself to directly enter the U.S. THC market when the necessary changes in U.S. regulatory conditions occur.”
Dive Insight:
Lord Jones is leaving the U.S. to take advantage of the cannabis market in Canada.
“Some say the grass is greener on the other side, and we’re determined to find out for ourselves,” Lord Jones said on Instagram. “As we embark on our journey to reconnect with our roots, it’s time to bid farewell, at least for now.”
Lord Jones is having a 75% off sale for most products on its U.S. website until June 23. The company sells products such as CBD gumdrops, body lotions and lip balm.
“We believe that one day, the U.S. will be one of the most important cannabis markets in the world,” Mike Gorenstein, chairman, president and CEO at Cronos, said in a statement. “But we also believe our resources are best spent on staying laser-focused on becoming cash flow positive by driving cost savings and process efficiencies for our borderless adult-use products.”
Parent company Cronos Group did not immediately respond to inquiries about Lord Jones’ exit from the U.S.
Cronos Group entered into an agreement to purchase Lord Jones’ parent company Redwood in 2019 for about $300 million. Cronos Group also launched CBD skin care brand Happy Dance in 2020 with actress Kristen Bell.
However, Happy Dance shut down its e-commerce site in January and said it would only be available at wholesale partners — such as Ulta and CVS — while supplies last. The brand had directed customers to sister brand Lord Jones as another option to buy CBD products from.
