The Queensland Bauxite Ltd (ASX: QBL) share price has rocketed up 21% on news that Wesfarmers Ltd’s (ASX: WES) Coles is now selling hemp products provided by Medical Cannabis Limited (MCL) and its subsidiary VitaHemp Pty Ltd. Readers may remember that Queensland Bauxite took the audacious step of moving into the cannabis industry a while back.
Red Tractor has now supplied hundreds of Coles stores with various products and oil blends that have hemp ingredients included.
The Queensland Bauxite market release conveyed a lot of excitement with the news, it said “Exposing hemp foods to a mass consumer market who may know little about hemp, and now see hemp derived products on a Coles shelf, inspires confidence and provides a win for a bourgeoning hemp foods industry that VitaHemp is now leading.”
Andrew Kavasilas, technical director of MCL, said “The stocking of hemp products in a major supermarket chain such as Coles, is a fulfilment of our vision that we have worked for over the past two decades in pushing towards the legalisation of hemp foods in Australia, so that the average Australian consumer is now exposed to and can easily benefit from the great health benefits that this superfood provides.”
Clearly, management are very excited by this news and it is a good triumph to be sold in Coles stores. However, the key will be to see if the products actually sell off the shelves and if that will turn into more sales for the company. If this news turns into long-term sales and profit then it could a positive announcement.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.