Australian health and biotech company Cellmid (ASX: CDY) is set to capitalise on rising health product retail sales in the United States having secured an exclusive distribution partnership with Tru Beauty Concepts and their network of 40,000 hair salons.
The 5-year distribution deal will provide Cellmid with access to Tru Beauty salons across 11 US States in the Northeast and their 42 field staff which will offer Cellmid’s évolis® Professional anti-aging hair products.
“In our view, the partnership with Tru Beauty is a game changer for the évolis® Professional brand in the US. Securing salon distribution will add scale to our US expansion and growth ambitions for the brand” said Cellmid CEO, Maria Halasz.
While not all salons in the Northeast are currently open due to COVID-19 restrictions, partnering with Tru Beauty will also enable customers to purchase Cellmid’s products on Salon Interactive, an eCommerce hub for hair salons across the United States which also hosts websites for individual salons.
The material impact of major U.S distribution will be dependent on take-up, however, Cellmid anticipates it to deliver significant revenue growth in the market where Cellmid’s sales in the US increased by 51% to $626k through FY20. This was primarily through distribution through retailers Bloomingdales, Macys and Saks.
Further making the United States market a priority, Cellmid launched evolis® Professional on Amazon (USA) last month and has resumed marketing activity in line with retail and salon re-openings across the U.S.
For the quarter ending 31 June 2020, Cellmid reported revenues of $3.06m, their highest quarter to date which was aided by a strategic shift to online platforms through the pandemic.
The évolis® PROMOTE 3 Step System uses a formulation of active botanicals, to grow hair faster, and lengthen the natural hair growth cycle. A package that includes shampoo, conditioner, and activator, which retails in Australia for around $100.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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