Paul Norman, former Kellogg (K) North America President, is betting that market for CBD or cannabidiol products derived from hemp is going to expand enormously in the consumer sector.
Norman says that the market for CBD products will grow four or five folds to a 20+ billion dollar industry in terms of consumer value over the span of next five years. He further added that CBD will be widely available in different kinds of consumer products.
Norman is presently the CEO of HeavenlyRx, a CBD based wellness company which is growing through investments and acquisitions. Norman said the firm will proffer services and products within the traditional categories inlcuding topicals, tinctures, vapes, but they will also play around other products that will incorporate CBD like food, beverages and skincare as well.
HeavenlyRx recently announced a stake of about 25% in Jones Soda (JSDA). The firm also invested nearly $30 million in Blühen Botanicals, a hemp cultivator. HeavenlyRx has also acquired Airgaics, a Florida based wellness company, last month.
Earlier in 2019, pharmacies like Walgrees (WBA) and CVS announced they will carry CBD infused products in certain states. CV Sciences (CVSI) recently declared a new deal to sell their CBD based products in 945 Kroger (KR) stores.
According to the federal regulations in the United States, hemp-derived cannabinoid is legal. Products can contain a maximum of 0.3% THC or tetrahydro cannabidiol, the compound that is responsible for making users feel ‘high’ while smoking pot or weed, above which it will be considered illegal.
Despite the federal regulations, the United States Food and Drug Administration (FDA) has not allowed hemp-derived cannabinoid to be infused in dietary supplements. The agency held a public meeting on 31 May, 2019 to discuss about CBD with stakeholders, lawyers, enforcement officials, consumers, retailers and business leaders.
Though the results from the meeting are not disclosed yet, the agency will roll out some useful information in the coming months, said an official. Currently, it allows only one CBD based drug Epidiolex, which is used for treating two rare forms of epilepsy in children.
Till the time the agency clears off the legality status of CBD in food and beverages, companies and consumers remain in a gray area. Companies must comply with the policies laid out by the FDA regarding the marketing and advertising for CBD products – FDA does not support marketing of CBD products with claims of medica benefits.
It recently issued warning letters to a few companies for advertising their CBD prouducts as a treatment for ailments with claims about medical benefits. One of the eminent brands was Curaleaf, a medical and wellness cannabis firm in the United States.
Norman says that education will play a key role in the CBD industry, however there has already been a significant inclination of consumers towards CBD products than traditional medical prescription drugs. Many people have reported benefits after using CBD oil.
CBD is known for its healing capabilities throughout the world. It is an ati-inflammatory and non-psychoactive drug which is used to treat various ailments such as stress, depression, anxiety, insomnia, pain, acute aches, inflammation, swelling, irritation and many others. Though there is little science to back up the claims of CBD and its potential, patients have reported improvement in their health after using the compound just for a few days.
About 80% of people who try CBD can easily witness the benefit in some form or the other, said Norman. He further stated that the consumer behaviour is automatically taking place, and their main aim is to create a brand or build a business that leverages on that behaviour and bring real solutions to people everyday.
California welcomes Cannabis Restaurants and Cafes with ‘flower’ and ‘budtender’ service
Just like any good chef planning to open a brand new restaurant, Andrea Drummer wants to get her work done just right. But her plantain-mango salsa with lamb chops will not be matched with beer or wine.
Instead, a “budtender”- widely popular in the industry as ganjiers, as in ganja sommeliers- will assist guests at the soon-to-open Lowell Farms cannabis cafe to pair their meal with the perfect amount of farm-to-table cannabidiol.
Drummer said that a kush is slightly bit more pungent, so it tastes better with a stew or a meal like meat or beef product. A lightly lemon profile goes well with a fish. One of her personal favourites, Blue Dream, tastes really good with both sweet and savory. Drummer tells that she has done done it with bread puddings, and with ice cream, but she’s also tried it with octopus.
When the vintage-like, rustic, hemp-filled cafe with 220-seat capacity will open, it will be the first of its kind in the United States: a cozy place for tourists and locals to relish high-quality meals and smoke a joint in public. Other restaurants are soon to follow.
But if they are planning to incorporate weed on the menu, restaurateurs in the city will have to work their way through a complicated workflow of regulations. The progressive city had approved an ordinance in 2017 and allowed businesses for this purpose.
Jackie Subeck said that they are building the boat as they’re on the water, with cannabis. Subeck plans to launch a cannabis cafe, spa, clinic and serves as the chairwoman of the cannabis legislative subcommittee for the West Hollywood Chamber of Commerce.
States that have legalized cannabis for recreation will watch the town pull it off. In Mayallowing cannabis lounges, Colorado Gov. Jared Polis (D) signed a bill. Cannabis restaurants may eventually become as normal as wine bars if legalization remains apace.
Sean Black, the co-founder of Lowell Herb Co., the cannabis organization launching the cafe said that whatever West Hollywood will be doing now will be followed by other blue states, three years later.
According to the proposition 64, cannabis is legalized in California, but consuming cannabis in public is still banned.
When a research session on the subject was held by the West Hollywood City Council in 2017, it was determined that access to locations for smoking was an issue of social equity.
John Leonard, the city’s community and legislative affairs manager said that many people in the city are renters, and they may not be allowed to smoke cannabis in their apartments. These people who stay on rent are forced to smoke in their cars or public places, and run a higher risk for getting arrested for that.
But this wasn’t the only reason why cannabis was legalized for smoking in public by the council.
Leonard said that people enjoy the nightlife in West Hollywood, so the cannabis legalization was sort of a natural evolution, that people can easily enjoy while staying in the West Hollywood in a hotel, or they could go out to cafes or bars to smoke a joint, and now they can go for cannabis consumption as well.
Cannabinoid, a hemp-derived compound was legalized from the federal government in December 2018 under the Farm Bill Act. The substance was removed from the list of Controlled Substances and made legal for production, processing, distribution and consumption.
CBD is widely popular for its medical benefits. From treating stress, anxiety, depression, sleeplessness to reducing acute pains, aches, inflammation, swelling, irritation, CBD has been used by numerous people for various health ailments.
There are public places for marijuana use elsewhere in California and Colorado, but there are many lounges connected to dispensaries or vape clubs that resemble a dingy cellar. These places are quite different from what West Hollywood had in mind when it launched applications for 16 on-site consumption licenses in May 2018.
The process drew a lot of attention and more than 300 applicants, who were scored on multiple factors such as social equity and innovation. The top eight participants in each of the five categories were permitted to proceed.
Drummer’s application was amongst the highest scorers in the category for cannabis consumption in lounge (vaping, smoking and edible), featured a “bright and airy oasis” with tableside “flower” service- hand-rolled cannabis buds into joints. Drummer also called for a full-fledged menu infused with cannabis, which Drummer has been creating for several years as a private chef for her clients including comedian Chelsea Handler.
HOLY SMOKE Nate Diaz puffs cannabis oil with fans before UFC 241 fight
The fans favourite Nate Diaz makes his octagon return on Saturday competing with Anthony Pettis, his old rival in his home of California. Diaz hasn’t fought since August 2016 when he lost to Conor McGregor in a majority decision at the UFC 202. The Stockton native reminded his fans of his unique personality by smoking a cannabidiol on the stage.
After his rematch defeat to The Notorious, Diaz infamously smoked CBD oil-which was banned by the United States Anti-Doping Agency at the time. However, the USADA has made cannabidiol legal in and out of the competition.
Diaz took advantage of the updated rules by producing his own Game Up Nutrition CBD line. The UFC also signed an agreement with Aurora Cannabis to assist fighters in taking supplements after a fight to treat aches and pains.
Diaz told ESPN that he was the pioneer for the UFC fighters to have the once prohibited drug legal.
Diaz said if they saw how he landed a great CBD deal for the UFC. He further stated that CBD is now present in every sport and athletic competition- from football to basketball to wrestling rings, CBD is legal and UFC is paid out!
He added that everyone has jumped on the CBD bandwagon because of him. He apparently started the CBD movement, says Diaz.
His brother Nick was given a five-year ban after he failed the post-fight drug test for marijuana metabolites after his loss to Anderson Silva in 2013.
In a pre-fight drug screening, Silva tested positive for oxazepam, drostanolone, temazepam and androstane, and the fight was proclaimed a no contest. Nick spent about four months appealing his failed marijuana test and gradually got it reduced to 18 months with a £82,000 fine.
However, the MMA veteran has not battled since the middleweight battle at UFC 183 after all the time spent appealing the decision. Because Nick failed to pay his NSAC penalties, in his high-profile battles with McGregor he was not qualified to corner his brother.
What is CBD?
CBD or cannabidiol is a hemp derived compound which is an anti-inflammatory chemical with healing capabilities. There are many medical benefits of using CBD, as claimed by several patients who have used it to treat their anxiety, inflammation, stress, depression and other ailments.
The federal government in the United States legalized hemp-derived cannabinoids under the Farm Bill in december 2018, thereby removing CBD from the list of controlled substances. According to the federal regulations, CBD products are legal for production, processing, sales and consumption, however the maximum limit for THC is 0.3% per unit. If any product contains traces of THC amounting to more than 0.3%, the product will be considered illegal.
Many states have legalized hemp derived CBD, but there is still some hesitation among consumers about the safety and effects of CBD. There is not much evidence that backs up the medicinal claims of CBD.
The Food and Drug Administration (FDA) held a public meeting in May to discuss the regulatory framework for CBD and its other products. The meeting was attended by several renowned scientists, researchers, law enforcement officials, consumers, business leaders and many others.
The agency is yet to declare any official statement about CBD’s regulatory framework, however it has warned companies not to market or advertise their CBD products as a treatment to prescription drugs or with medicinal benefits.
It recently issued a warning letter to Curaleaf for advertising their CBD products claiming medical benefits, which is strictly prohibited by the agency. A spokesperson from the FDA said that the agency is highly concerned about the health of consumers and want to ensure that CBD is a safe product to consume in any form. Till the time the agency clears off CBD as a safe substance, companies have to take additional precautions to ensure they are not violating any regulations laid out by the FDA.
John Isner to Endorse New CBD Sports Drink
CBD oil has exploded in the past eight months, especially after the federal government legalized hemp-derived cannabidiol. The farm bill in December 2018 removed cannabinoid from the list of controlled substances, thereby making it a legal compound to be used in different products.
Companies have been using CBD in a wide variety of products including gummies, coffee, tea, mocktails, chocolates, pizza, burgers, drinks, popcorn and what not. From wellness and beauty to health and lifestyle, CBD has created a buzz all over the market place.
Consumers have started relying on CBD heavily for treating their ailments, starting from the basics like cold, flu, acute pain to severe diseases like cancer, epilepsy and Alzheimer’s. Although there is not much science to back up the medical claims that CBD comes with, many people have reported that CBD has helped them improve their health by a significant margin. They feel healthier and better now.
The marijuana extract has been associated with helping people alleviate mental health problems like anxiety, depression, stress and sleeplessness. Since CBD is devoid of THC, the psychoactive compound in marijuana, it doesn’t intoxicate the user with hallucinations or the ‘high’ they get while smoking pot or weed.
A new drink company is planning to roll out CBD products to bring some of the medicinal benefits to the sports community. Defy is the first mainstream CBD beverage that will be targeted at athletes. Launched in collaboration with Denver Broncos great Terrell Davis, each bottle of the Defy contains 20mg of high performance spectrum hemp extract, and other ingredients like coconut water, B vitamins and electrolytes.
The label recommends consumption of the CBD oil before, during or after the exercise. The formula is intended to enhance athletic performance by increasing focus and effort during physical activities, while speeding up the recovery process from any injury caused earlier.
Despite that research on CBD benefits is still in its nascent stages, John Isner is all out to promote CBD products for their health benefits. The top-ranked American and world’s no. 15 male, Isner is the first pro tennis player to endorse Defy. The collaboration was announced in Atlanta at the BB&T Open.
Isner explained that he plays a sport where even a slight point off can make a huge impact and draw a line between winning and losing a match and Defy seems to be the perfect product which is specifically aimed to help athletes perform well at all points. He further added that it’s been great knowing Defy as a company and that he looks forward to working with them to assist people in achieving high performance through CBD.
Defy is currently available in 3 different flavours: Orange Mango, Mixed Berry and Lemonade. A six-pack costs nearly $48 which means the product is decently priced but not cheap.
CBD is being widely infused in topicals, ointments, creams, oils, and in many other forms. After its legalization, celebrities have started using CBD heavily for their acute pains, injuries and stress. From the beauty mogul Kim Kardashian West who threw a CBD-themed baby shower to welcome her fourth child with husband Kanye West, Jennifer Aniston, the popular actress from the world famous TV series FRIENDS who uses CBD for stress, anxiety and acute pains, everyone seems to be relying on CBD for their daily needs.
Despite the popularity, the U.S. Food and Drug Administration have not allowed CBD in food and dietary supplements. According to the agency there is no solid scientific proof which supports the medicinal benefits claimed by CBD and allowing consumers to use such a product is straight away dangerous.
The agency has been working on regulating CBD products that have already flooded the consumer space. Public health and safety is the first priority of FDA, says a spokesperson.