Channel 4 Ventures, the TV network’s private equity arm, has invested in CBD retail and medical cannabis company Cannaray as part of a £10 million funding round.
Other investors include American finance firm Three Bridges Private Capital and French firm Alpha Blue Ocean.
Channel 4 Ventures’ investment will allow Cannaray to gain access to “a high-reach upmarket TV audience in the UK.”
According to the equity firm, the investment was made in order to capitalise on the “rapidly growing consumer interest in CBD”, with online UK sales of the drug doubling in 2021 in comparison to the previous year.
Last summer, Cannaray launched the first CBD marketing campaign to feature prominent TV advertising, spearheaded by brand ambassador and TV personality Claudia Winkleman.
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The brand also has significant visibility on e-commerce channels, most notably Amazon and is available in traditional retailers Tesco, Superdrug, ASDA, Waitrose and Harrods.
“We’ve been impressed with the leadership team at Cannaray and their progress in building a portfolio spanning European Medical Cannabis and the Cannaray CBD wellness brand, Channel 4 Ventures founder and head, Vinay Solanki said.
“This investment fits well with our strategy to back bold categories as part of our Future4 strategy to diversify new revenue streams.
“We’re looking forward to supporting Cannaray’s CBD wellness brand campaign across our marketing platform and hope it drives the significant brand awareness only possible through the scale and reach of TV advertising.”
Cannaray CEO, Scott Maguire added: “I am delighted with the high participation of both existing and new investors within this funding round and thank them for putting their money and faith in us.
The Channel 4 Ventures backing is one of the first of its kind in the European cannabis sector, and a sign of the credibility and growth opportunity available within the market.”
The news comes at the Food Standards Agency (FSA) attempts to increase regulation in the fledgling sector, releasing a list of 3,500 CBD products it ends to authorise for sale in the UK. CBD-infused foodstuffs are theoretically not yet approved for sale in the UK, although they are widely available.
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