Khiron and Dixie brands JV targets Latin America

By Simon Pitman

- Last updated on GMT

Dixie brands
Dixie brands
Leading Colombian/Canadian CBD cosmetics player Khiron has teamed up with US-based Dixie brands in a venture aimed at expanding the CBD cosmetic category in Latin America.

Both companies are significant players in the CBD cosmetics and personal care market, with Khiron having a fast expanding footprint in six Latin American markets for its Kuida brand, which is based on advanced formulation technology based on CBD.

The partnership was initially announced in January of this year as a 50/50 joint venture, will focus on a joint portfolio of over 100 individual products, which includes an expansive Dixie portfolio that includes topical CBD-based products for both humans and pets.

What the JV means

The objective of the joint venture is for Khiron to tap into the US market, and specifically the 60 million Hispanic population that the brand is expected to appeal to, through Dixie’s existing distribution platform in the country.

Meanwhile Dixie will be able to tap into Khiron’s fast expanding distribution throughout the Latin American market, with a consumer base of 620 million, which also includes a fast-growing middle class population with increased spending power.

The Dixie-Khiron partnership also aims to further expand the Kuida brand reach in the Latin American, following its launch in the Colombian market last October, at the Belleza Y Salud Expo, held in Bogota.

Expansion throughout Latin America

Since then the brand has been expanded into the Peru, Chile and Mexico markets and has continued to meet with significant success, having been carefully positioned as a masstige brand thanks to an amenable price point.

Most recently Khiron has announced plans to launch in the Brazil and Uruguay markets, thanks to its proposed acquisition of NettaGrowth, tapping into a total Latin American population of over 430 million people.

Cosmetic and personal care products based on CBD are a fast-growing category in the Latin American market, with the cannabis-related products category is estimated to reach $12 billion by 2028, according to Prohibition Partners.

Fast retail expansion

According to Khiron executives, the success of the brand in Colombia has meant it is now stocked in 54 to 56 stores throughout the country, and could be available in up to 3,000 individual stores by the end of this year.

"Our timing for launching this joint venture is ideal.  Latin America is poised to become one of the world's largest cannabis markets, due to continuing legalization across the region and the increasing affluence of the population, particularly in urban areas,” ​said Alvaro Torres, Co-founder and CEO of Khiron Life Sciences.

“Despite these attractive dynamics, there are relatively few significant competitors, as many companies have targeted other global regions. We believe we have an opportunity to establish ourselves as a dominant player in this market." 

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