Every other day we discover that celebrities are endorsing distinctive products, sometimes they are not even using the products themselves. Endorsement deals involve huge sums of money and percentages of the revenue at times. When the endorsing personality is incentivized with financial gains it becomes rather impossible for the consumers to determine if the celebrity actually uses the product themselves. Influencer marketing and endorsements are fairly common with budding businesses and startups. Relatively new, the CBD industry is no exception, there are numerous products in the market and differentiation is minute. Furthermore, the influencer marketing model is also very commonly adopted by industry players. Celebrity endorsement brings in a spike in sales volume and increases the overall revenues of any business and owing to this a number of CBD businesses have struck deals with major celebrities. Mike Tyson with his Tyson Ranch, John legend with Plus CBD, Rob Gronkowski with CBDMEDIC, Megan Rapinoe with her brand Mendi, and Bella Thorne with her upcoming line Forbidden Flower are all examples of such arrangements. A more recent and major development in the industry came about as a result of CBD industry pioneer Endexx Corporation and the music producer turned entrepreneur DJ Khaled in the form of a joint venture called Khode LLC. The venture recently launched a CBD Wellness products line called BlessWell. It seems like just another line with a celebrity at its face value, however, let us take a hard look into the details.
DJ Khaled teased his new CBD Wellness line in one of his music videos for his latest album, together with Endexx, he has launched “Facial Products for Bearded Men” under the brand name “Blesswell”. “I created Blesswell to provide men with an at-home CBD grooming solution that allows them to put their game face on, build their confidence and get their mind in the right zone,” he exclaimed via his social media. The music virtuoso recently posted on Twitter “This Friday at Noon I’m celebrating the launch of @blesswellco with a guided meditation break on my IG and on @blesswellco. Let’s take care of ourselves. #BlessUp”
Celeb Stoner reported on BlessWell that, “The product line, created in partnership with Endexx Corporation, includes Conditioning Beard Oil, Ultimate Shave Cream, Lathering Body Wash, Facial Cleansing Scrub, Blue Charcoal Face Mask and Daily Facial Moisturizer. They’re all infused with hemp-derived CBD. Khaled wears a full beard.”
Mr. Khaled was also added to Khode LLC’s board of directors. Endexx owns Khode, a distributor of premium CBD products, including Blesswell. “We’re elated to be partnering with the multi-hyphenate powerhouse that is DJ Khaled,” Endexx CEO Todd Davis stated. “Creating these unique, premium products with someone of his caliber has been monumental for the brand. His passion for the category started with his personal and professional journey in the wellness realm and he has since become someone people look up to for personal care advice and expertise.”
Proactive Investors reported earlier before the launch “Endexx Corporation partners with Grammy winner DJ Khaled to launch BLESSWELL CBD grooming products”. Endexx Corporation (OTCMKTS: EDXC) CEO Todd Davis told Proactive that “the provider of CBD products and its partner, Grammy Award-winning artist, and record executive DJ Khaled, has launched a new line of CBD-infused men’s grooming items called BLESSWELL.” Davis said that “the sustainably sourced collection, which was inspired by DJ Khaled’s pursuit for wellness features 100% US grown and processed hemp products that focus on a more natural approach to achieving the healthiest hair and skin.”
Most celebrities do not have the potential to be successful entrepreneurs, however, DJ Khaled is an exception, he has successfully launched and run several entrepreneurial undertakings and has been reportedly making millions. The CBD market is quite competitive with lots of products and endorsements as well, however, the line BlessWell appears to be a winner with backing from an industry pioneer business on the product development end and with a successful serial entrepreneur DJ Khaled on the marketing end of things.
DJ Khaled’s latest venture with Endexx. has received widespread coverage in the global media, Beauty Packaging announced that “DJ Khaled Wants to Help Lead Men Down a Wellness Path” and detailed that the Grammy-award-winning DJ Khaled wants to help introduce all men “to a whole body, holistic form of self-care.” More than just products, Blesswell offers online shoppers a guided meditation video that you can watch, voiced by DJ Khaled. If you make a purchase, you receive access to a second video.”
Men’s Health’s article on the brand was titled “DJ Khaled Wants You to Embrace Your “Blessings” With His New CBD Skincare Brand.” The article reports Mr. Khaled as saying that “Showing gratitude for life by taking care of yourself is a beautiful thing,” The author Vanessa Powell recognizes that “The CBD industry might already be a crowded market continuing to expand every day, but DJ Khaled’s BLESSWELL is not just ‘anotha one’. While many other celebs have jumped into the world of CBD edibles, topicals, and tinctures, today, Khaled expands his empire into CBD-enhanced men’s grooming products. The Grammy award-winning artist partnered with Endexx Corporation to launch a collection of six, refreshingly tropical, spa-like products for men to upgrade their skincare routine at an accessible price.”
“The new line focuses on a more natural approach to achieving healthy hair and skin. DJ Khaled’s new line takes a natural, holistic approach to men’s grooming. Inspired by Khaled’s pursuit for wellness and time spend in Jamaica, Endexx says the Blesswell grooming line is designed to be an “essential toolkit” for a man’s at-home self-care needs.” reports Candid Chronicle. They further added that “A familiar face in the music world is getting into the cannabis business with a new brand of cannabidiol (CBD) men’s grooming products. The Endexx Corporation today announced the launch of Grammy winner DJ Khaled’s new Blesswell line, which features U.S.-grown, sustainably sourced hemp-infused products.”
Proactive Investors details the venture in two comprehensive articles aptly titled “Endexx partnership with Grammy winner DJ Khaled looks even better after unveiling BLESSWELL CBD grooming products” which has been covered earlier, and another article named “Endexx has ‘chart-topping’ momentum for its CBD products as sales growth is set to accelerate in 2021”. The article underscores that “The BLESSWELL CBD line features 100% US grown and processed hemp products that focus on a more natural approach to achieving the healthiest hair and skin.” Todd Davis, Endexx CEO issued the following statement regarding the venture “We are elated to be partnering with the multi-hyphenate powerhouse that is DJ Khaled. Creating these unique, premium products with someone of his caliber has been monumental for the Endexx Corporation brand.” He added that “His passion for the category started with his personal and professional journey in the wellness realm and he has since become someone people look up to for personal care advice and expertise,”
DJ Khaled detailed in an interview with People that “Self-care is something that I preach to myself. I try to bless myself, in many ways. And BLESSWELL was just perfect for everything that I represent.” “I’m going to be able to give you that Khaled feel meditation and hopefully, you’ll be inspired and motivated,” he added. BLESSWELL products, paraben, and sulfate-free as well as being vegetarian-friendly, are available for purchase exclusively at Blesswell.co.
“We’re in what they call the ‘hockey-stick’ phase of our growth. We’ve spent the last six years building the foundation, including the formulation of the product line, and now we’re converting into sales and marketing as well as expanding through e-commerce and through commercial retail,” Endexx CEO Todd Davis told Proactive Investors. “We’ve secured the necessary marketing assets and distribution platform to grow Endexx into a $200 million-plus company within the next three years,” he added. As one of the pioneers in the hemp and cannabis industry, Endexx established itself as an early market leader in US CBD product sales through its independently operated subsidiary CBD Unlimited.
Despite the widespread media coverage and a strong social media presence and backing, BlessWell will surely face competition. Sometimes celebrity-endorsed products are expensive and/or of low quality, therefore, we decided to test out the products for ourselves in order to write up a proper review. Endexx’s experience with product development and their proprietary dosage pays off well in the therapeutic performance of the products. The product line is sustainably produced which is a good thing for the environment and the environmentally-conscious customer. The packaging is excellent in its purpose of protecting the product and has an elegant feel to it. It can easily be ascertained that DJ Khaled’s audience may not be stock buyers and stock buyers might not connect the dots between BlessWell and EDXC without prominent and consistent public promotion. However, sales and the “real estate” of having products in up to 20,000 RiteAids or CVS nationwide as the company suggested is a concrete bottom line any stock buyer cannot ignore. It can easily be ascertained that DJ Khaled’s audience may not be stock buyers and stock buyers might not connect the dots between BlessWell and EDXC without prominent and consistent public promotion. However, sales and the “real estate” of having products in up to 20,000 RiteAids or CVS nationwide as the company suggested is a concrete bottom line any stock buyer cannot ignore.
With just 10,000 stores at a $19 price point, EDXC only needs to sell 105 units per store to reach $20M in annual sales, with a 40% profit margin, the net profit potential is $12M with these conservative estimates. However, it is more likely that an individual customer would buy more than just one product, and on top of that, the products have a subscription model which would translate into consistent and recurring sales. If the venture is able to roll out products to CVS, Riteaid, and other places as mentioned by Mr. Khaled in Tweets, at this quality and price points, it’s bound to sell well in brick and mortar stores too. It must not be ignored, however, the influence DJ Khaled has in making e-commerce sales. With a forward PE for EDXC of at least 20X and with current OS, that puts this stock well on track for dollars instead of pennies making it a Buy and Hold stock.
EDXC is an OTC Markets stock and you have to check with your personal brokers or go to brokers like Schwab and E-Trade who allow OTC stock purchases.
NOTE: Endexx is traded as EDXC and BlessWell is the product owned by Khode, LLC. A wholly-owned subsidiary of Endexx.
DISCLAIMER: THIS ARTICLE IS STRICTLY THE AUTHOR’S OPINION. ALL STOCKS INVOLVE RISKS AND THE POSSIBILITY OF LOSING ALL OF YOUR INVESTMENT. PLEASE CONSIDER ALL RISKS BEFORE INVESTING AND CONSULT WITH AN INVESTMENT ADVISOR IF YOU LACK EXPERIENCE
