Averix Bio and Kreglinger partner to bring CBD ingredients to EU
14 Mar 2022 --- US-based cannabinoid (CBD) ingredient manufacturer Averix Bio is stepping into the EU market following a distribution and supply agreement with Kreglinger Europe. The deal is set to facilitate the shipment of ingredients across Europe.
“Consumers want natural, botanical ingredients that also improve health and wellness. As the world now knows, there are a number of reported health impacts from people using cannabinoids – better sleep, less anxiety, pain management,” Miles Wright, CEO at Averix Bio, tells NutritionInsight.
“When faced with the choice of product with or without CBD, consumers increasingly want the benefit of these ingredients.”
Averix Bio is a manufacturer of Active Pharmaceutical Ingredient (API)-quality CBD isolate used in pharmaceutical, food, supplements, cosmetic and beverage products. Kreglinger is an ingredient distributor to product manufacturers in each of these industries.
Access and education are described as key drivers behind CBD interest.Consumer appetite in EU
CBD is seeing increased focus from consumers and industry alike, including for cancer treatment and pain relief.
“The growth opportunity for cannabinoid products is expanding everywhere and consumer appetite in Europe is very high,” says Mark Ward, chief revenue officer of Averix Bio.
The CBD space has garnered attention for its potential for pain relief, personalized nutrition, botanical adaptogens and mental health support.
“With demand for CBD products on the rise, we plan to meet the needs of our customers with the best ingredients available. We have been interested in the cannabinoid space for some time but had not found a supplier with the rigorous compliance standards that we felt necessary to enter the market,” underscores Wim Arnouts, CEO at Kreglinger Europe.
Growing markets
Demand for CBD has pushed sales to exceed expectations in the UK, reaching almost US$1 billion last year.
“We see higher CBD use in countries like Germany and the UK because access helps drive education and perhaps vice versa. Countries like Poland, Netherlands and Switzerland also are growing markets,” notes Wright.
He observes that consumers are showing educated buying preferences for items that have “real science” and safety behind them. “These products aren’t necessarily cheap, so ensuring their purchase actually provides benefits is top of mind for consumers.”
This reflects growing demands across industry for clinical backing, spurring premiumization trends and branded ingredients.
By Andria Kades
