eCargo, Mellow UK Announce Asia Distribution Partnership

Rhea-AI Summary

eCargo Holdings Limited (ASX:ECG) has announced an exclusive partnership with UK-based Mellow to distribute CBD products in Asia. This collaboration includes the creation of a joint venture, 'mellow asia', which will leverage eCargo's distribution expertise to help brands penetrate the Asian market. The global CBD market is projected to reach USD 18 billion by 2025, with Asia being a significant growth area. The partnership will primarily focus on Hong Kong and Southeast Asia initially, expanding into India and Japan through existing marketplaces by 2022.

Positive

• Formation of a joint venture, 'mellow asia', enhances market entry opportunities.
• Access to a rapidly growing CBD market projected to reach USD 18 billion by 2025.
• Utilizes eCargo's extensive distribution network in Asia for brand partners.

Negative

• None.

HONG KONG--(BUSINESS WIRE)-- eCargo Holdings Limited (ASX:ECG) (“eCargo”) today announced its Asia exclusive partnership with UK-based Wellness and CBD marketplace Mellow UK (‘mellow’) to distribute and market their brand partners throughout Asia.

The agreement involves founding the ‘mellow asia’ joint venture (JV) between the two companies and gives eCargo the opportunity to distribute and sell products for mellow’s brand partners in Asia, leveraging its’ expertise to help brands enter and grow into new markets.

The global CBD & Hemp wellness market is growing rapidly – forecast to reach USD18 billion in 2025 – with Asia increasingly representing a sizable portion of the market as regulations adapt to the categories, and more brands enter the region.

By partnering with mellow and forming mellow asia, eCargo can take advantage of this future market growth.

mellow brand launches will be anchored around presences in Hong Kong and South East Asia through eCommerce and offline channels, before extending into India and Japan through partnerships with marketplaces such as Flipkart, TataCliq and Rakuten in 2022.

Lawrence Lun, eCargo CEO commented: “We're excited to partner with mellow and leverage our Asia distribution capabilities to sell products from their portfolio in the region. The partnership allows both companies to take advantage of the explosive growth expected in the Asian CBD market, and develop mellow asia into the continent’s leading distributor of these goods.”

James Storie-Pugh, mellow Co-Founder added “mellow is extremely proud to be partnering with eCargo on mellow asia. The demand for CBD and Hemp products in Asia will grow at a staggering rate in the coming years – this partnership puts mellow and our brand partners at the forefront of that growth. Utilising our technology platform and eCargo’s Asia expertise, this JV is an exciting step towards mellow’s global ambitions.”

About eCargo

eCargo is a technology-focused sales enabler, building digital solutions that help international brands sell more in Asia, utilizing proven capabilities to offer a transparent, collaborative and integrated end-to-end solution backed by eCargo’s extensive online and offline Asian distribution network.

About Mellow

mellow UK is a privately-owned global CBD & Hemp eCommerce company delivering integrated technology services to market for D2C brands. Their fully-owned, bespoke tech-stack enables brands to grow their digital footprint globally, while also offering multi-brand D2C marketplace, sector-specific in-house digital marketing, and logistics/fulfilment capabilities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210926005073/en/

Lewis Bacon;

eCargo Head of Corporate Marketing;

lewisbacon@ecargo.com

Source: eCargo Holdings Limited

FAQ

What is the partnership between eCargo and Mellow about?

eCargo and Mellow have formed an exclusive partnership to create 'mellow asia', a joint venture aimed at distributing CBD products across Asia.

What is the significance of the 'mellow asia' joint venture?

The 'mellow asia' joint venture will leverage eCargo's distribution capabilities to help CBD brands enter and grow in the Asian market.

What market growth is expected for CBD in Asia?

The global CBD market is expected to reach USD 18 billion by 2025, with Asia representing a significant portion of that growth.

When will Mellow's products launch in India and Japan?

Mellow's products are expected to launch in India and Japan through partnerships with local marketplaces in 2022.

What are eCargo's capabilities in the Asian market?

eCargo offers an integrated, end-to-end sales solution backed by a vast online and offline distribution network in Asia.