Zelira Therapeutics partners with Health House International to bring CBD toothpaste to the UK

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Zelira Therapeutics Ltd’s (ASX:ZLD) (OTCMKTS:ZLDAF) (FRA:G1G) CBD-formulated toothpaste is primed to hit the UK market under an exclusive distribution agreement.

The healthcare company inked the distribution deal with fellow ASX-lister Health House International Ltd (ASX:HHI), which teamed up with Zelira under a five-year contract.

This agreement stipulates Health House will purchase and distribute a cumulative US$500,000 worth of Zelira’s CBD toothpaste over the next 12 months.

Overall, Zelira believes the UK is an important market for its SprinjeneCBD toothpaste, which is currently available to customers in the US.

“A key channel”

Zelira Therapeutics managing director Dr Oludare Odumosu said: “Zelira took a very strategic position in the cannabinoid-based consumer product segment with the successful launch of our first SprinjeneCBD oral care toothpaste product in the US.

“Health House International has established distribution networks in emerging markets such as the UK, and will be a key channel as we continue to grow our global distribution footprint.

“Through distribution partners like Health House International, Zelira is able to reach larger market segments and accelerate the delivery of quality CBD oral care products globally.”

Agreement details

Zelira’s five-year contract with Health House kicked off on Monday, June 14.

Under the deal, Health House has agreed to purchase and distribute at least US$250,000 worth of Zelira’s CBD Toothpaste over the next six months.

To bring the cumulative total to US$500,000, it has also committed to a sell and distribute a further US$250,000 worth of product over the following six months.

As is usually the case with these agreements, either party can terminate the exclusive distribution deal with 180 days of written notice.

Because any revenue estimates are based on the volumes that Health House orders, Zelira is unable to quantify the total revenue the agreement could bring in.

However, the ASX-lister does believe the UK holds significant growth opportunities for clinically validated, hemp-derived oral care products.

Smiles all round

Zelira first partnered with toothpaste manufacturer SprinJene® in December 2020 to distribute its CBD toothpaste over the counter in the US.

The agreement also leveraged SprinJene’s existing distribution channels, which opened doors to popular retailers such as Bed Bath & Beyond, Central Market and e-commerce monolith Amazon. 

The SprinjeneCBD toothpaste uses natural ingredients to fight common oral problems like bacteria build up and bad breath, utilising CBD to fight inflammation in a bid to improve the user’s oral health.

A diagram indicates the intended effect of ingredients in Zelira’s CBD toothpaste.

Health House’s chief operating officer for UK & Europe, Tony Samios, said Zelira’s CBD toothpaste brand represented “a unique product offering in Oral Healthcare”.

“ [The toothpaste] is made up of patented formulation of zinc, black seed oil and CBD which are thought to fight conditions like gingivitis and reduce gum inflammation, and to which the addition of CBD could make this even more effective.

“We are pleased to be able to bring this product into the UK market and distribute it to our range of clients. Test marketing to date suggests very strong interest in this product.”

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