CHICAGO -- Welcome to CSP’s CBD and the Future of Cannabis e-newsletter!
With a remarkable confluence of state and federal legislation and deregulation, cannabis and its related offshoots have the opportunity to become the fastest-growing product category in the United States in coming months and years. With this new e-newsletter, our intention is to help you, the retailer, navigate the landscape from a legal and product standpoint.
So why is it “CBD and the Future of Cannabis”? Certainly, we’re all familiar, one way or another, with cannabis as a plant product that can be smoked for medical relief or to gain a high. Currently, cannabis for recreational use is legal in 20 states, and smoking it for medical affect is legal in all but three states. The product itself, however, cannot yet be sold in convenience stores and most other channels of retail. But you can bet it will be someday. That’s the future of cannabis, and it’s a place you’ll likely want to play, again, someday.
CBD is even more complicated.
For those of you who don’t know, CBD is short for cannabidiol. Cannabidiol can be obtained from hemp, among other plants in the cannabis family. It is the nonpsychoactive component of cannabis—that is, it doesn’t get you high. Recent deregulation, in the form of the 2018 Farm Bill signed by President Trump in December, removed industrial hemp from the Controlled Substances Act. That opens the door to legal growth and development of hemp-derived CBD products.
CBD has emerged as a wellness ingredient in products such as body oils, lotions, beverages and even snacks and candy. And CBD is expected to be one of the fastest-growing product categories over the next decade, with sales predicted to grow nearly tenfold to top $5 billion by 2027.
That’s where c-stores come in.
Drinks and snacks are right up the alley of c-store retailers. But for now, legal sales remain a moving target. With this e-newsletter, CSP commits to keeping an eye on that market to keep retailers updated on when moves are made and how they might affect the c-store channel.
This e-newsletter serves as a companion to a new CSP event. Our inaugural CBD & the Future of Cannabis Conference will be held April 9-11 in Denver. During this three-day event, attendees will learn about legislation surrounding marijuana and CBD, discuss the types of products available, take a tour of a local dispensary and farm, address what to expect from the U.S. Food and Drug Administration, and how CBD will affect food, tobacco and alcohol sales.
Just as the conference is a must-attend event for retailers trying to stay ahead of the trends, this e-newsletter, full of news, opinions and curated content, will be a must-read for anyone anxious to keep their store or chain on the cutting edge. Just as our readers keep tabs on packaged beverages, tobacco, foodservice and the other familiar categories of the c-store trade, this new segment will soon become required knowledge. As always, CSP intends to be on your go-to resource on the subject. And so, again, welcome.
CHICAGO -- The dawn of cannabis has arrived. Over the course of 2018, talk of regulated cannabidiol (CBD) products—nonpsychoactive cannabis items—spread like wildfire across the retail industry. Beer and beverage companies such as Heineken USA, Constellation Brands and the Coca Cola Co. expressed interest in cannabis-enhanced drinks, while others supported the arrival of CBD candies in c-stores.
On Dec. 12, the U.S. House of Representatives passed the Senate-approved version of the Agriculture Improvement Act of 2018, also known as the Farm Bill, which, if approved by President Trump, would allow the industrial farming and state-regulated production of hemp, another nonpsychoactive variety of cannabis. If approved, the bill will skyrocket the CBD market over the next few years, said Nik Modi, consumer analyst for RBC Capital Markets, New York, a global investment bank.
Here are seven new CBD products hitting the market …
The Asian American Trade Associations Council (AATAC), Tampa, Fla., and Vertical, Los Angeles, a set of companies in the legal cannabis and hemp-based CBD industries, have launched Instant CBD Strips in select convenience stores nationwide.
Instant CBD Strips will arrive in stores in Florida, Texas and North Carolina before becoming available nationwide. They are taken orally and reach the bloodstream within minutes, providing high bioavailability, minimal wait-time, precision dosing and eliminate adverse side effects, according to the companies.
FIFCO USA, Buffalo, N.Y., formerly North American Breweries, is launching the "hemp-style" flavored malt beverage Hemptails in February 2019. Hemptails is a ready-to-drink alcohol beverage intended for consumers looking to embrace the hemp movement in their drinking experience. Hemptails will be available nationwide in single-serve 23.5-ounce cans and four packs of 16-ounce cans. Consumers can choose from three flavors: Hemp’d, Citrus Gold and Passionfruit Express.
With 8% alcohol by volume, Hemptails is made with organic, sterilized hemp seeds and contains no psychoactive ingredients.
CBD product creator Platinum X CBD, Los Angeles, was the lone marijuana supplier at the 7-Eleven Franchise Owners Association of Chicagoland Holiday Trade Show in November. The company offers CBD Lollipops in Lemon, Cherry, Blueberry, Grape, Root Beer, Green Apple and Orange flavors. Platinum X CBD also produces CBD Gummies, Rock Candy and Pixie Stick candies.
Flow Alkaline Spring Water, a Canadian alkaline spring water brand, has launched its line of Flow Glow beverages in North America. These beverages are infused with CBD and contain botanical and antioxidant ingredients.
Like the rest of the company’s products, Flow Glow is sourced from a family-owned spring in Ontario, Canada. The water comes from a limestone aquifer where it collects healthful, essential minerals including calcium, magnesium and potassium.
The Alkaline Water Co. Inc., Scottsdale, Ariz., has launched its A88 Infused beverages, a line of water bottles that contain bioactive CBD molecules from hemp plants. The water comes in both regular and sparkling varieties and four flavors: grapefruit, peach mango, raspberry and lemon lime, all of which will be branded as Soothem and arrive in 500-mL bottles and contain 8.8 grams of hemp. A88 Infused beverages will arrive to stores in the first quarter of 2019, according to the company.
Boulder, Colo.-based healthy snacking brand Weller has launched its first product line: CBD Coconut Bites, which are available in Dark Chocolate, Caramel and Original flavors. CBD Coconut Bites arrive in both single-serve (five bites) and multi-serve (20 bites) packages. Each individual bite contains 5 milligrams of CBD from full-spectrum hemp plants. Weller’s CBD Coconut Bites are available at various retailers nationwide and online.
Gstaad, Switzerland-based CBD product manufacturer Swissx Oil & Confectionery Inc. revealed the distribution of its products to the United States. The company will bring its Swissx Gold CBD products to more than 500 convenience stores and gas stations across Southern California.
The Swissx Gold Line includes 1,000-mL, five-dose oral dispensers, which are available for $19.95. Its ingredients include Swissx CBD, bee pollen, vitamin E, Ormus gold and coconut oil. More products, including Swissx’s CBD infused chocolates, are planned for distribution soon, the company said.