With the recent passing of the Farm Bill, CBD has been steadily increasing in popularity amongst customers that have found ways to integrated it. There are many more opportunities in the market to sell CBD products, considering the lack of THC. There have been yoga studios, pet boutiques, coffee shops, and more, which have formerly not allowed any cannabis-related products.
Even with the newly broad spectrum of opportunities available to hemp producers, there is still a serious lack of integration into mainstream retail establishments that could make the market boom. Analysts from Hemp Industry Daily reviewed the various retail sectors within the US economy and compared it to the concentration of CBD products within the included outlets.
Based on information from 2018, the two retail sectors that appear to have the most significant CBD presence are tobacco-related stores and grocery stores that target natural and organic foods. These two types of shops are considered to be specialty retail shops, however, and aren’t even available in every city. Conventional drug stores and grocery stores significantly lack CBD products, which shows that mainstream shoppers do not have as great of an opportunity to see what CBD can do for them.
The big concern for the CBD industry is determining how long it will take these types of retailers to hold their products, but the FDA is a major factor. Their regulations do not adequately state the assurance needed regarding CBD foods, drugs, and cosmetics that are legal and safe to be distributed.
Whitt Steineker, an attorney in Alabama that deals frequently with food and beverage distribution laws, pointed out, “What the FDA says, goes. Unfortunately, we’re in kind of a ‘wait and see’ posture on CBD.” However, there are many mainstream retailers who have not followed this mantra, adopting CBD products anyway.
One of the largest retailers to integrate it is Neiman Marcus, which holds a headquarters office in Dallas for their high-end department store chain. It recently announced that CBD beauty creams will be sold in stores that are exclusive to California, Colorado, and Massachusetts. However, its important to note that recreational marijuana is legal in all of these areas, so there wouldn’t be any concern over any CBD sales anyway.
The Bartell drug store chain is stocking up on five different brands of CBD products, but they will only be available in select locations. Hopefully, with more clarity in deciphering what the Farm bill allows, more companies in mainstream retail will adopt their use.
There are a few steps that companies can take in the meantime to make sure that they are following the regulations that are presently imposed, according to Hemp Industry Daily –
- Perform testing to ensure that products are shelf-stable and provide a label that clearly and honestly indicates what’s inside.
- Get product-liability insurance, which most mainstream retailers require before holding any CBD remedy.
- Prepare for recall procedures, in the event that regulators change the laws or have to recall the product.
- Maintain a constant supply of products, rather than falling victim to seasonal or location-based restrictions.
- Create a budget that involves waiting for up to 120 days for the profit to be delivered from retailers.
To view the full report, visit https://hempindustrydaily.com/2018-farm-bill-report/.