The farm act in December 2018 had companies hopping on the CBD bandwagon all too quick! One of the biggest beverage firms globally, Coca Cola had been caught up in rumors when it was said that the company planned to sell beverages infused with hemp oil.
Hemp is a Cannabis Sativa plant that contains high levels of cannabidiol or popularly known as CBD. CBD is widely popular for treating stress, anxiety, depression, insomnia, seizures in epilepsy, Tourette and much more.
In addition to being a great compound for treating mental health disorders, it is also widely touted for its anti-inflammatory properties that help in relieving muscle spasms, acute pain, aches, injuries, etc.
Putting the rumors about Coca Cola to rest, a spokesperson from the company, Kent Landers said in a statement that the rumors are untrue. Landers further added that the organization has stated several times that it has no plans to enter the CBD market whatsoever.
The speculations came after a since-deleted video on YouTube showed a man opening a can of Coke that he claimed was infused with cannabidiol, or CBD, oil, which is usually known to treat pain due to its chemical properties but doesn’t induce a high.
The man in the video goes by the username “Gabor the Blind Guy”, told his viewers that he had gained access to the product via his father, who produces capping and bottling machines for major food and pharmaceutical companies.
The man said Coca-Cola approached his father in Canada to design a machine that puts a childproof cap or lock on cans of Coca-Cola. Gabor said that Coca-Cola is coming up with a new line of drinks infused with CBD oil in Canada.
The company was in talks with an eminent Canada-based cannabis company Aurora Cannabis and was eyeing the cannabis market as the consumer demand for cannabis-based products grew multifold after the Farm Act surfaced.
Warren Buffet, CEO and Charlie Munger, Vice-Chair of Berkshire Hathway said that a decision to enter into the cannabis market would be a mistake for Coca-Cola. Munger had said, “It would be a big mistake” at the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska.
Munger said that Coca-Cola had such a wholesome image and cannabis simply doesn’t. The contradiction between the two is so striking that it might jeopardize Coca-Cola’s image in the consumer market and impact them drastically.
James Quincey, CEO of Coca-Cola had also dismissed the rumors about Coca-Cola’s plans to create cannabis-infused drinks earlier in October. He said that they don’t have any plans to get into the CBD space.
Is CBD Legal?
Yes, according to the Farm Act of December 2018, hemp was removed from the list of controlled substances labeling it as an agricultural crop. It is commonly used to derive CBD which is touted for its medicinal claims. CBD is an anti-inflammatory and non-psychoactive substance that improves the overall health of users.
Since the Farm Act legalized hemp, companies joined the CBD space making it bigger than ever. With consumer demands rising every day, companies started producing CBD products at a skyrocketing level with an abundance of options.
From pure CBD oil to CBD gummies, topical, cream, capsule, ointment, isolate and many other options, CBD is available in a wide variety of options.
Although the federal government has legalized hemp production and selling, the U.S. Food and Drug Administration is yet to create regulatory guidelines about hemp-based products. Till now the agency has held a public meeting which was attended by stakeholders, retailers, consumers, business leaders, researchers, law enforcement officials to discuss hemp and its derived products in detail.
However, there hasn’t been a concrete decision or result in the meeting. Nonetheless, the agency recently released warning letters to 15 companies that were either not complying with the existing regulatory guidelines or were practicing false advertisements.
The FDA has stated that CBD is not a completely safe compound for regular use. The substance has little research done to back up the medical claims people are making about it. It requires more research when it comes to the long term effects of CBD, how you should consume it if it will react with other drugs in your body and many other important questions.
Despite the FDA being stringent about how companies can sell their hemp and its derived products, many companies continue to advertise their products with heavy medicinal claims. The agency has warned consumers to be aware of the hemp-based products that they buy from online as well as brick and mortar shops and ensure their concentration and quality.