This article contains affiliate product links. Discover may receive a commission on purchases made through these links.
The The CBD gum market is explodingand is expected to reach nearly $14 billion by 2028. Within the overall hemp rubber category, rubber products grew approximately 30 percent in less than seven years (with the CBD market as a whole growing at over 20 percent in the same time frame).
In other words, the green boom shows no signs of slowing down. In this race, two of the industry’s shining stars have joined forces: a leading manufacturer of CBD gummies Verma Farms acquired Gen Z−based Penguin CBD (another industry leader) to create one of the most competitive CBD gum portfolios in the hemp market.
With some of the tastiest and most affordable CBD gum products on the market, Verma Farms and Penguin already had a leading position before the merger. By joining forces, they intend to be even more competitive next year as market share grows. With North America holding the largest market share, these two US-based companies are even better positioned.
Verma Farms and Penguin were founded in 2019 by AJ Agrawal and Deep Patel respectively. Just after launching the two businesses, the two CEOs and founders faced unprecedented challenges due to the global pandemic of 2020 and the economic crisis. Yet, despite all the adversity a small business could face in its first year, they not only survived; they scaled. Penguin’s booming business caught the attention of Verma Farms, which acquired the brand on May 13, 2021 for an undisclosed amount of cash.
While Penguin will continue to exist as its own brand and follow its original mission, it will be able to expand its reach and product offerings under the Verma Farms umbrella. This will now be easier thanks to the expanded team and workforce. Members of the core team will also merge during this acquisition, with Patel remaining as an advisor.
“I couldn’t be happier that the company I built is in the hands of such a trusted brand,” said Patel. “We share a common vision not only for our CBD brands, but also for the impact we want to make on people and the planet. We are both committed to ensuring that our businesses are green, sustainable and create the healthiest possible product for consumers.”
Growth is expected in multiple sectors of the CBD gum category, including high and low concentration options – both of which Verma Farms offers. Both Agrawal and Patel confirmed that the product range will continue to grow, offering one of the most extensive menus of CBD consumer goods currently available online. Penguin’s best-selling CBD Sour Worm Chews and Verma Farms’ top-rated Maui Melon Chews will remain part of the core offering.
Patel, a 22-year-old Gen Z CEO, started out as a marketing consultant and infused the fibers of his CBD business with his media savvy, allowing him – and Penguin – to stand out in a sea of thousands of new brands. Combine that with a premium product made in the USA at an affordable price and in a unique selection of flavors, and it’s no wonder Verma Farms was ready to close the deal.
Verma Farms, on the other hand, was inspired by Agrawal’s time in Hawaii – a combination of cleanliness, nature, warmth and a healthy, laid-back lifestyle, says CEO and founder; the state is now home to the Verma Farms brand. Agrawal also has a background in marketing—one of the many commonalities that allowed Patel and Agrawal to make a smooth transition with their business.
“With Penguin as part of the Verma Farms brand, our capacity to bring ultra-pure healthy lifestyle products to the masses has increased significantly,” said Agrawal. “Deep has built an incredible business – one built on a true understanding of a younger consumer – that fits perfectly with the ethos and infrastructure of Verma Farms. We are more confident than ever heading into the third quarter of 2021, now with our combined efforts and systems.”
This consolidation of two strong companies will allow Verma Farms and Penguin to further address the mess; differentiation from a place of intuitive marketing, branding and product innovation; and maintain an edge with high-quality products created through exceptional farming and manufacturing practices.
“The past two years have been an amazing journey for me and my business,” said Patel. “The hemp industry as a whole has undergone monumental changes in such a short time – and every business owner in this space has had to be on their toes. But together with Verma Farms we are now stronger than ever. I’m so excited to see how we can continue to innovate and disrupt a crowded industry, see more profit and growth, and help our consumers lead healthier and happier lives.”