SinglePoint Getting Off on the Right Foot with Pure American Hemp Cigarettes

If a company wants to generate substantial revenue from a tobacco product, it better get into convenience stores. According to the National Association of Convenience Stores (NACS) 2019 State of the Industry Report, conventional cigarette sales are declining, but sales of “other tobacco products” (OTP) are on the rise. In 2018, OTP dollar sales jumped 23.6%, increasing the category’s percentage of overall in-store sales to 6.7%. Margins are widening for OTP, as judged by a gross product percentage of 30% ranking OTP as the third most lucrative category in c-stores in 2018.

Overall, in-store sales (which excludes fuel) at c-stores continue to rise, hitting a record $242.2 billion last year. And that was with the number of c-stores actually edging down 1.1% to 153,237.

In a nation with about 330 million people, half – or 165 million Americans – frequent a c-store every day. Indeed, that is the place to be with “grab-and-go” products.

Luckily for SinglePoint (OTCQB: SING), they have a CEO in Greg Lambrecht that knows the c-store industry very well. In the 1990s, Lambrecht and Colin Jones built Premium Cigars International with c-stores as a main point of expansion, ultimately placing cigars in tens of thousands of locations and bringing the company public on the Nasdaq exchange.

Click here to see the company corporate presentation

NACS Event

The premier global event for the c-store industry is the annual NACS Show, which this year is October 1-4 at the Georgia World Congress Center in Atlanta. More than 1,200 companies, including Fortune 500 brands, exhibit their goods and over 23,500 visitors attend, networking and striking deals to get products into convenience stores.

SinglePoint will be exhibiting its new Pure American Hemp cigarettes for the first time at the convention (Booth #5653).

Lambrecht attended the convention over 10 times, dating back to when Premium Cigars International was first launching products. “Buyers would be lined up at our booth to place orders,” Lambrecht told CFN Media in a phone conversation.

The hemp industry is at the front of a seminal moment with the passage of the 2018 Farm Bill, which made hemp federally legal and opened up interstate commerce of products. Coupled with the legalization of cannabis and growing awareness of the therapeutic benefits of cannabidiol (CBD), interest and activity in new products is reaching fever pitch.

CBD, which is trumpeted as a treatment for everything from dry skin to epileptic seizures, is a compound found in hemp and cannabis that has insignificant amounts of tetrahydrocannabinol (THC). THC is the component of marijuana responsible for the psychoactive “high.” By definition, hemp is essentially THC-free (<0.3% THC).

Looking forward to NACS, Lambrecht believes there will be plenty of buyers looking specifically for hemp cigarettes.  And SinglePoint will be ready, evidenced by him commenting in a recent press release, “It’s the right product at the right time in the right place. We are set up and ready to take orders at the show.”

Click here to see the company corporate presentation

Pure American Hemp Cigarettes

Reaping benefits of CBD can be tricky insomuch that it doesn’t seem to have the same effect on everyone depending on how it is delivered and the person ingesting it. CBD can be found in a broad range of products, like creams, pet products and supplements, many of which SinglePoint sells on its e-commerce site, SingleSeed.com. When it comes to smoking, though, the quality of CBD to lower anxiety seems to be universally effective on people.

SinglePoint makes its Pure American Hemp cigarettes in four different varieties. All have the common thread of being nicotine-free, tobacco-free and grown organically, without pesticides and other contaminants, which should allow SinglePoint to command premium pricing.

The premium model is somewhat akin to British American Tobacco’s American Spirit brand, in that consumers tend to be open to paying more for products that have fewer additives and are more natural (even though American Spirit had to remove the word “natural” from its packaging in 2017).

Most experts agree that hemp is not addictive. To that point, hemp cigarettes can be viewed as an alternative to smoking conventional cigarettes or vaping to help kick the nicotine habit.

Ahead of the Show, Sales Already Coming In

Lambrecht says that they’ve got their order book ready for NACS, but the fact is that it won’t be the first sales of Pure American Hemp cigarettes. Ahead of the show, the company engaged High Performance DM to lead a campaign marketing the new hemp product. More than 5,000 direct mailers and 40,000 emails have been sent to verified NACS attendees responsible for making buying decisions.

Some couldn’t even wait until the convention, with orders already having been received and some distribution deals now in place.

Click here to see the company corporate presentation

Given estimates by the cannabis market analysts at BDS Analytics and partner Arcview Market Research that U.S. CBD sales will top $20 billion by 2024, it’s not a surprise that c-stores are looking to get in front of the movement. SinglePoint is building its footprint across the industry and just may be setting Lambrecht up for his second success in the smoking space given that sales of smokable hemp are, no pun intended, on fire. Brightfield Group identified dried and smokable hemp flowers as one of the fastest growing segments in the CBD market.

From 2017-2018, the smokable hemp market exploded with 250% growth and that was before the 2018 Farm Bill legalized hemp throughout the U.S. Look for more of the same going forward and for word from SinglePoint about successes at the convention and consumer uptake as the marketing initiatives move on.

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About Ash Stringer