General Merchandise

Are CBD Energy Products the Newest Trend?

Hemp Energi Shots will arrive in 1,000 convenience stores in 2019
hemp energy shots
Photograph courtesy of Hemp Energi

SAN DIEGO – Hemp Energi, a manufacturer of hemp-based products, has debuted its flagship brand, Hemp Energi Shots, in select retailers nationwide. The shots come in two varieties: hemp seed oil and CBD oil. Its other ingredients include B12 vitamins, caffeine and cane sugar and are free of artificial colors, sweeteners and flavors. The San Diego-based company aims to provide consumers with a “focused energy”—hence the combination of hemp and caffeine—through the new shot, Brandon Young, CEO of Hemp Energi, told CSP Daily News.

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The 2-ounce energy shots will arrive in 1,000 convenience stores in five Western states in 2019, Young said. He did not name the stores.

The shots will have their own two-tier and three-tier racks at the register alongside staple energy products such as 5-hour Energy. The company also uses in-store promotions, including Hemp Energi stickers, posters, 5-foot-by-5-foot rugs, window advertising and countertop mats to attract shoppers. Young said these merchandising and marketing strategies focus on engaging consumers who are in the checkout line, to spark their curiosity and make them say, “What is this?”

“Our 2019 successes begin with skilled distributors conducting three [c-store] focused and targeted pilots in proven markets like Denver in order to achieve the necessary sell-thru data to command sizable investment,” Young said. The product also will have major distribution in convenience stores in airports, he said.

The launch will be led by former directors from 5-hour Energy and Red Bull, who will assist Hemp Energi with its sales and distribution. Hemp Energi plans to increase its marketing for the new energy shot during the summertime, which is peak season for the energy drink market, Young said.

Young said he expects to see more brands ride the CBD-energy trend down the line, considering the two sectors are booming; the energy drink market is expected to hit $80 billion in 2022, while hemp may reach $20 billion by then, he said. But energy aside, he foresees CBDs becoming an ingredient for “everyday” products, ranging from power bars to canned goods.

“CBD will become an essential ingredient in everyday products," he said.

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