The announcement builds on previous distribution and business partnerships all aimed at extending the reach of the Kuida brand as it continues to grow in its native Colombia market, as well as a more gradual expansion into the rest of the Latin American region.
Grupo Exito is a Colombian retailer with a 110-year history in Latin America and is further distinguished by being the only retail company in the region that is listed on the Dow Jones Sustainability Index, in the emerging markets category.
Latin American retail reach
The retailer is part of the Casin Guichard-Perrachon group and had revenues of $17.3 billion in 2018, derived from a portfolio of 1,533 stores that, on top of the domestic market, include Uruguay, Brazil and Argentina.
The current agreement states that the Kuida brand will initially be sold in five of the nine Exito WOW stores and 16 of the 252 traditional format stores across the region.
The emphasis on the WOW stores reflects the fact that these retail outlets have a new and very cutting edge format, which includes a digitally-integrated customer experience, where Kuido will form a cornerstone for the store’s cannabis product offerings.
And to support this each WOW location will have a dedicated experience center, as well as a skin care expert on hand to give customers the details about the Kuida brand’s CBDERM technology for its total portfolio of seven products.
Education will be key to brand success
CBD skin care represents confusion for many consumers, who are uncertain of its efficacy and how it is linked to marijuana. The skin experts will be able to answer any questions and to put consumers around about doubts or misconceptions.
“Through our partnership with Grupo Éxito, Khiron continues to build on its strategy to generate Kuida revenue and market-share, delivering first to market CBD products to consumers across Latin America in an innovative and informed environment,” said Alvaro Torres, CEO and a director of Khiron.
“We know that the more customers understand our product, the greater this translates into sales. This agreement with Grupo Éxito gives us an exceptional opportunity to do that and further strengthens Kuida’s consumer reach in Colombia.”