The brand began sales in August 2019 with a hemp clay mask and its first batch of over 500 units sold out instantly. Since, the brand has added two more products to its portfolio, a hemp facial oil and a hemp moisturiser.
In the past year, the company has been growing around 20% month-on-month, driven in part by the boost in e-commerce and skin care demand that we witnessed last year following the outbreak of the COVID-19 pandemic.
The company believes that with the rapidly growing interest in cannabis-derived ingredients, it is still at the beginning of its journey.
“For the first year we were kind of this brand for problematic skin but what we've realised is that because there are so many different various types of benefits of hemp oil, we actually want to become more of a general skin care brand that focuses on that hemp aspect of things,” said Fedele D’Amico, head of marketing, Hey Bud Skincare.
In February, Australia’s Therapeutic Goods Administration (TGA) approved the sale of low dose cannabidiol (CBD) in pharmacies without a prescription.
The company is hopeful that these regulatory developments will eventually allow it to expand its product development into CBD.
“In the future, we definitely want to move into CBD, so we're just kind of waiting for when CBD becomes available for skin care in Australia by the TGA and then we'll be able to pivot into that as well and so will become more of a cannabis skin care brand that will have hemp seeds into it and also CBD skin care lines as well,” said head of operations, Ollie Watts.
The company said has already begun developing CBD products with its partners so it would be ready at a moment’s notice when CBD cosmetics are allowed in Australia.
The company is aiming to close the year with revenues at A$4m (U$3m) to A$4.5m (U$3.4m). Building on its success, the company will be focusing on expanding the business in several ways.
Aside from a raft of new launches and expanding its own team with in-house creatives, one of the company’s biggest goals is to expand into brick-and-mortar retail.
The firm told us that it is current it talks with “some of the largest retailers” in Australia.
Additionally, the company is looking to expand its brand presence on the international market with a focus on New Zealand, the US, Canada and the UK.
Alex Roslaniec, who leads sales and product development for the brand, said the company is also working to improve the customer experience with the brand through personalisation.
“Personalisation is a big opportunity for brands. One thing we’re currently developing is getting more details from our customers. For example, through a skin care quiz. And then we can start to create this process, whether it be through AI or some other types of program, where you give people really personalised recommendations on the types of products that they should be having.”