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Extraction Summary
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People
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Organizations
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Events
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Quotes
Document Information
Type:
Financial research report / market analysis
File Size:
1.24 MB
Summary
This document is page 49 of a financial research report by Cowen Collaborative Insights, dated February 25, 2019. It analyzes the market potential for CBD-infused food and confections in the U.S., projecting sales could surpass $400 million by 2020. The document contains charts and sensitivity analyses regarding market share and revenue growth. It bears the Bates stamp HOUSE_OVERSIGHT_024865, indicating it was part of a document production for the House Oversight Committee, though the specific content is strictly market research unrelated to specific individuals.
People (1)
| Name | Role | Context |
|---|---|---|
| Michael Cella | Recipient/Employee |
Named in the sidebar watermark: 'This report is intended for michael.cella@cowen.com'
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Organizations (3)
| Name | Type | Context |
|---|---|---|
| Cowen |
Financial services firm producing the report (Cowen Collaborative Insights)
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| IRI |
Data source cited in Figure 91
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| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT_024865'
|
Locations (1)
| Location | Context |
|---|---|
|
Market region analyzed (U.S. CBD Confectionary Sales)
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Relationships (1)
Email address michael.cella@cowen.com in watermark
Key Quotes (2)
"A $420 mm CBD food category would reflect just a 1.5% share of the total confectionary industry."Source
HOUSE_OVERSIGHT_024865.jpg
Quote #1
"The below sensitivity contemplates the overall revenue opportunity based on CBD confections share of the overall category."Source
HOUSE_OVERSIGHT_024865.jpg
Quote #2
Full Extracted Text
Complete text extracted from the document (2,053 characters)
COWEN
COLLABORATIVE INSIGHTS
February 25, 2019
COLLABORATIVE INSIGHTS
February 25, 2019
Food (Confections)
The food category, which we classify as confections, including gum drops, chocolates, baked goods, and bars, is expected to be one of the smaller revenue opportunities relative to nutraceuticals, topicals and beverages. That said by 2020, we believe the sales can surpass $400 mm, should the category increase its share of overall CBD to 7% by 2020. In the U.S., we estimate that the confection category (chocolate, non-chocolate and gum) grew to $25.5 bn in 2018, reflecting a 5.5% YoY growth rate. If we extrapolate that growth out over the next 2 years, the total implied confection market would surpass $28 bn. A $420 mm CBD food category would reflect just a 1.5% share of the total confectionary industry.
Figure 90 Confectionary CBD Sales Can Surpass 400 MM By 2020
U.S. CBD Confectionary Sales ($ in mm)
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
2018: $60
2019E: $200
2020E: $420
2019E: $200
2020E: $420
Source: Cowen and Company
Figure 91 Extrapolating 5.5% Growth Results In Category Revenues Surpassing $28 BN In 2 Years
U.S. Confectionary Sales ($ in bn)
$29.0
$28.0
$27.0
$26.0
$25.0
$24.0
$23.0
$22.0
$29.0
$28.0
$27.0
$26.0
$25.0
$24.0
$23.0
$22.0
2017: $24.1
2018: $25.5
2019E: $26.9
2020E: $28.3
2018: $25.5
2019E: $26.9
2020E: $28.3
Source: IRI and Cowen and Company
Note: 2018 sales reflect latest 52 weeks ended 3/25/18
Note: 2018 sales reflect latest 52 weeks ended 3/25/18
The below sensitivity contemplates the overall revenue opportunity based on CBD confections share of the overall category. While we believe a 1.5% share is reasonable and achievable, the revenue outcomes range from ~$100 mm to $700 mm based on the level of market share gains achieved over the next two years.
Figure 92 We Believe Sales Can Range From Over $100 MM To ~$700 MM Based On Level Of Share Capture
2020 Market Share Scenario Analysis
Market Share
0.5% | 1.0% | 1.5% | 2.0% | 2.5%
Absolute Sales ($ in mm)
$137 | $278 | $420 | $562 | $703
Market Share
0.5% | 1.0% | 1.5% | 2.0% | 2.5%
Absolute Sales ($ in mm)
$137 | $278 | $420 | $562 | $703
Source: Cowen and Company
[Sidebar Text]
This report is intended for michael.cella@cowen.com. Unauthorized redistribution of this report is prohibited.
This report is intended for michael.cella@cowen.com. Unauthorized redistribution of this report is prohibited.
COWEN.COM
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