CBD Archives - Green Market Report

Debra BorchardtDebra BorchardtFebruary 20, 2019
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3min2120

A letter to the (Food & Drug Administration) FDA Commissioner Scott Gottlieb was penned by a group of politicians requesting guidance with regards to CBD (cannabidiol). The letter referred to New York City’s ban on food products containing CBD and enforcement actions happening in the states of Maine and Ohio.

Representative Chellie Pingree posted the letter on her Twitter feed. It acknowledged that the FDA had posted a response with regards to CBD following the passage of the 2018 Farm Bill. The letter also noted that there is a “tremendous amount of confusion among product manufacturers, hemp farmers and consumers.”

The letter said, “We are calling on the FDA to swiftly provide guidance on lawful pathways for food products with CBD.” The group asked that answers to the following questions be provided by Friday, February 22.

When will FDA provide guidance on lawful pathways for food products containing hemp-derived CBDin interstate commerce? For example, the GRAS Notification program seems as though it is one such pathway.

When will FDA hold a public meeting on the regulation of food products containing hemp-derived CBD in interstate commerce?

New York City’s Health Department has confused food producers and restaurants as well. The group initially banned all CBD food products, but then reversed course last week and delayed the ban until July 1. The information was sent out in an email to restaurant owners.

The NYC Hospitality Alliance said it has requested the DOH to provide guidance but has received no answers to its requests. “This aggressive enforcement is another example of New York City’s regulatory approach: issue fines first, and educate last. Issuing a violation for using CBD in food and drink is especially ironic to happen when New York is seriously considering legalizing marijuana.  Enough is enough.  The city must stop finding ways to fine our city’s small businesses.”

One manufacturer of CBD edible products said he was operating “business as usual” apparently unconcerned about the confusion created by the FDA.


Mark TaylorFebruary 9, 2019
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11min11810

If you wish to re-publish this story please do so with following accreditation
AUTHOR: Mark Taylor
PUBLISHER:  CANNABIS LAW REPORT

Europe’s booming CBD market is at risk of going bust after food officials recategorised cannabidiol as a novel food, effectively outlawing its sale across the union.

The European Food Safety Authority said the substance must undergo further testing before it is approved, a process which could take two years.

Bureaucrats at the European Commission’s (EC) Working Group of Novel Foods were responsible, and their move follows similar efforts in the UK where the Food Standards Agency (FSA) called for a wholesale ban on CBD.

The EU Novel Food catalog now officially lists CBD as an unauthorized Novel Food, stating: “Cannabis sativa L., extracts of Cannabis sativa L. and derived products containing cannabinoids are considered novel foods as a history of consumption has not been demonstrated. This applies to both the extracts themselves and any products to which they are added as an ingredient (such as hemp seed oil). This also applies to extracts of other plants containing cannabinoids. Synthetically obtained cannabinoids are considered as novel.”

European leaders clearly did not get the memo; cannabis products like hemp and CBD are in vogue, and making Canadian and US investors lots of money, and they should change the rules, right?

Well not quite, and perhaps everyone in Europe is getting a little too excited as “CBD” floods high streets and health shops. The Cannabis Trade Association UK puts the number of CBD users at over 250,000, doubling the previous year’s figure.

The Greenhouse CBD Shop Tooting, London

How much of this is good quality, or even passable quality, or even CBD is anyone’s guess given how quickly some sellers have emerged.

In the UK, Cannabis is still a controlled Class B drug the Misuse of Drugs Act 1971 last time we checked, and CBD is a most definitely a chemical substance found in cannabis.

The Home Office updated legislation in November allowing cannabis to technically be prescribed by specialists however this appears to be only once in a blue moon if Mars and Jupiter are also aligned and a groundhog emerging from Buckingham Palace on the first day of spring sees the shadow of a pot leaf.

Austria and Spain have also had enough of the relentless CBD shilling currently going on and have banned its sale, both citing the ‘novel food’ legislation.

What is a ‘novel food’ anyway?

Novel food under European law is food that was not consumed to a significant degree by humans in the EU before 15 May 1997, when the regulation entered force. It can be of plant or animal origin, resulting from scientific and technological research, or from the food traditions or cultures of third countries.

The underlying principles underpinning Novel Food in the EU are that Novel Foods must be:

  • Safe for consumers
  • Properly labeled, so as not to mislead consumers
  • If novel food is intended to replace another food, it must not differ in a way that the consumption of the Novel Food would be nutritionally disadvantageous for the consumer
  • Pre-market authorization of Novel Foods on the basis of evaluation in line with the above principles is necessary

Fans of the McRib can breathe easy, despite being one of the most foul creations to ever find itself on a menu, it is not classed a novel food.

(Editors Note: For fans of the McRib you may be interested to learn the following information after Time Magazine decided to  research what this wonderful food source actually contained……..”The McRib is back, and it is disgusting. TIME Magazine looked at what’s actually in the infamous invention at McDonald’s, and the results aren’t pretty:“If you haven’t indulged in one yet, here’s what you’re missing: azodicarbonamide, ammonium sulfate and polysorbate 80 — those are just three of the 70 ingredients (34 in the bun alone) that go into the BBQ pork sandwich, according to the restaurant’s website.These components are in small enough quantities to be innocuous. But it’s still a little disconcerting to know that, for example, azodicarbonamide, a flour-bleaching agent that is most commonly used in the manufacture of foamed plastics like in gym mats and the soles of shoes, is found in the McRib bun. The compound is banned in Europe and Australia as a food additive. (England’s Health and Safety Executive classified it as a ‘respiratory sensitizer’ that potentially contributes to asthma through occupational exposure.) The U.S. limits azodicarbonamide to 45 parts per million in commercial flour products, based on analysis of lab testing.”If that’s not nasty enough for you, the gelatinous, manufactured, meat-like patty in the McRib is made using “restructured meat technology,” a term which has thankfully been defined for the masses.

SOURCE :https://www.honeycolony.com/article/a-scary-look-inside-the-mcrib/)

 

Not happy

Unsurprisingly, Europe’s pro-cannabis lobby groups are annoyed.

The Alliance for Natural Health International, a non-governmental organisation promoting natural and sustainable approaches to healthcare worldwide, even went as far as to blame Big Pharma.

“Why the sudden U-turn by EFSA? Is it because the CBD oil industry’s growth has exceeded all expectations presently eating into pharma sales of painkillers?” the group wrote. “Or is it because some current market players are not conducting themselves in a professionally self-regulated manner? Maybe there are some genuine safety or quality concerns over some products on the market? Or was there undue pressure from enforcement agencies, which were in turn leaned on by pharma, in the UK, France, Germany, Italy and the Netherlands that forced EFSA’s hand?”

The group cited a 2016 study which estimated medical cannabis use (extracts including THC) in the US has already cost Big Pharma nearly $166m annually, and could top $5bn from profits going forwards. “We know pharma hasn’t got much interest in selling  , naturally-sourced, low cost medicines,” ANHI added.

With the projected dollar amounts set to erode the over-the-counter (OTC) painkiller market (globally valued at $491 billion USD in 2018), the recent regulatory challenges are understandable, the group said, before laying into the regulators.

“It may sound conspiratorial, but the facts would suggest people in suits behind closed doors have decided the market needs knee-capping before it grows any further,” they said. “It’s not surprising to find regulatory opposition to a food supplement that has application for so many. The fact that CBD has been consumed in hemp oil as part of the diet for many decades, along with the lack of a level playing field for supercritical extractions, should, in our view, form the backbone of the much-needed defence.”

A similar tale of woe is emerging from Austria, where the tentacles of Big Pharma have again been blamed for nobbling one of Europe’s busiest CBD markets.

With some careful nudging, the government dusted off an old playbook and proposed CBD be banned from cosmetics following the restriction of cannabis in cosmetics referred by the European law for such ingredients.

So banned from eating it, and drinking it, you can’t even smear it on your face any longer either.

While the bottles of CBD oil are being removed from shelves, various hemp associations are calling their lawyers.

The European Industrial Hemp Association (EIHA), in October 2018, told the European Commission on the traditional or novel food status of hemp extracts: “Hemp extracts and tinctures (hemp oil) were indeed made and sold in products, which would nowadays be ‘supplements’ up to 80 years ago”, which looks very much to us like the beginnings of a legalistic nerd-off.

Expect this one to run.


Debra BorchardtDebra BorchardtFebruary 4, 2019
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4min3291

LB Equity has raised $50 million for a portfolio titled LB Equity Emerging Growth Fund, which will be concentrating its investments in cannabis companies that are involved in beauty, health, and wellness. The company’s first investment is with the platform Standard Dose, which is dedicated to selling hemp-based CBD products as well as educating consumers on these new products. The company did not announce how much of an investment it made into Standard Dose.

The retail platform will provide content to educate consumers on the emerging CBD market, plus current industry research and information about CBD products. This information will include dosage and regulatory updates.

The market has been exploding with CBD products since the 2018 Farm Bill was passed legalizing hemp and products made from hemp-derived CBD. The problem is that not all hemp CBD is created equally and there is quite a bit of inferior product on the market. Standard Dose is starting with 37 distinct beauty and lifestyle products that it has vetted and tested.

The company’s ingestible products include vape pens, tinctures, olive oil, honey, and beverages. Consumers should be aware though that the FDA must approve of any foods containing hemp-derived CBD. In a statement issued in December, the FDA said, “Congress explicitly preserved the agency’s current authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (FD&C Act) and section 351 of the Public Health Service Act.” The FDA went on to add, “The FDA requires a cannabis product (hemp-derived or otherwise) that is marketed with a claim of therapeutic benefit, or with any other disease claim, to be approved by the FDA for its intended use before it may be introduced into interstate commerce.”

“Our goal at Standard Dose is to facilitate an honest conversation about CBD and to help consumers gain clarity of an industry that, until now, has been confusing and unregulated,” said Anthony Saniger, Founder and CEO of Standard Dose. “We take the time to vet all of our products and share information so that consumers can choose CBD products with confidence. With the very recent legalization of CBD, we know that interest in the industry and its products will skyrocket.”

LB Equity is led by Jay Lucas, a former partner at Bain & Company, Karen Ballou, a highly experienced beauty industry professional (Redken and Elizabeth Arden) and Jim Morrison, who served as President of L’Oreal U.S. for nearly 10 years. The extended team consists of strategy and investment professionals along with an advisory group of veteran industry executives across core value creation disciplines.  Prior to Standard Dose and the latest Fund, LBE has completed investments in ten additional beauty and personal care brands, including MD Complete, Marula Pure Oil, Immunocologie and Blamtastic among others.

“LBE is targeting the massive opportunity available at the intersection of the rapidly growing cannabis industry and the many emerging brands within the skincare, beauty and related personal care sectors,” said Jay Lucas, Managing Partner of LB Equity. “With experienced executives from both the finance and beauty industries, LBE is perfectly positioned to leverage the transformational impact that these newly legalized cannabis-based products will have on the beauty industry.”


Debra BorchardtDebra BorchardtJanuary 24, 2019
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5min4620

On February 3, the 53rd Super Bowl in Atlanta Georgia will decide the league champion of football for the 2018 NFL season. If you are in attendance at the Super Bowl, you will see CBD coffee ads in the stadium, but if you are watching the game from home you will be not be exposed to any cannabis related advertising.

New York-based Acreage Holdings, Inc. (CSE: ACRG.U) wanted to run an advocacy ad during the game. The ad featured three medical marijuana patients saying how the product had helped them. It made no health claims for their own products and it didn’t promote the purchase of the company’s products.

CBS which is airing the game sent an email to the company saying, “CBS will not be accepting any ads for medical marijuana at this time.” The ad would have cost approximately $5 million.

Acreage currently has the largest footprint of any cannabis company in the country with operations/licenses in 19 states. “It’s a public service announcement really more than it is an advertisement,” said Harris Damashek, Acreage’s chief marketing officer.

Football fans at the stadium will, however, see advertisements for Baristas Coffee Company, Inc. (OTCPK: BCCI) White Coffee and the new Baristas EnrichaRoast CBD Coffee. The White Coffee can be purchased through Amazon (www.trywhitecoffee.com) and the company’s new EnrichaRoast CBD Coffee (www.baristas.tv) which uses a proprietary technology introducing CBD to the beans after they are roasted can be purchased on the company’s website. 

The company said that the ads will run throughout the day in and around the stadium before, during, and after the game, and will include a special offer to send a message to Maroon 5. The spots will be seen on numerous digital displays including mobile devices allowing fans to connect via special Portals.

Baristas said that the CBD ads are only available due to Canna Broadcast Medias’ (OTCPK: CBMJ) geofencing platform which will deliver ads in and around the stadium. Canna Broadcast Media specializes in getting mainstream media cleared promoting the cannabis sector including network TV, radio, and digital ads targeting those who wish to take advantage of the incredible investment opportunities that exist in the cannabis sector.

“Having Baristas White Coffee and our new EnrichaRoast CBD coffee ads at the Super Bowl will give us tremendous exposure,” said Barry Henthorn Barista CEO. “We are thankful to the NFL, ReelTime Media, and Canna Broadcast Media for making this possible. Baristas is growing its market awareness and expanding its product offerings.”

Marijuana Super Bowl History

This isn’t the first time cannabis tried to insert itself into Super Bowl week. In 2014, the Marijuana Policy Project put up a series of billboards highlighting the safety of marijuana and challenged the NFL’s punishment of pot smoking vs. the approval of alcohol. Smart Approaches to Marijuana, the anti-marijuana group went on the defense with their own billboards, which sparked a billboard battle.

 


Debra BorchardtDebra BorchardtJanuary 23, 2019
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3min5781

Eaze just released its 2018 State of Cannabis report giving insight into the buying habits of cannabis consumers. Eaze is a Calfornia-based cannabis delivery software company with buying history from 450,000 cannabis shoppers who have used Eaze for its delivery software service along with 4,000 survey respondents.

CBD

Some of the key findings included the breakout year for CBD (cannabidiol) products and the increase in the number of women who have become cannabis consumers. The report called CBD the “darling” of 2018 after learning that CBD consumers nearly doubled in 2018 from 2.6% to 4.8%. Part of this could be attributed to the tsunami of CBD products hitting the market and the general acceptance of the product as being mostly legal. The 2018 Farm Bill legalized CBD derived from hemp. Baby boomers are driving the increased sales of CBD products with 8.4%  of that business coming from that age group.

Women, in particular, are drawn to making CBD purchases. The Eaze report said that “Their preferred products appear to be more ‘beginner’ friendly.” The CBD-only customers reported a variety of effects from taking the product. 61% reported relaxation, while 41% reported anxiety and stress relief, while 40% reported pain relief.

Women

In 2015, women accounted for 25% of the cannabis market and that number has jumped to 38% in 2018. “Over the past year, the total number of women customers grew 92%,” said the report. It also suggested that at this rate, women could end up equaling men by the year 2022 for consumption.

Women were most likely to purchase edibles, drops, and topicals, while men tended to buy the traditional flower and concentrates.  Gummies and the biggest edibles seller followed by bites, chocolate bars, cookies, and mints, respectively. Women also tend to consume cannabis more for personal care and sleep, while men use it for at-home entertainment and sports or exercise.

Substitutions

The report also determined that cannabis consumers tended to give up other things once they began to make regular cannabis purchases. Millenials reduced alcohol consumption and the Gen Z folks either quit tobacco smoking entirely or at least cut it down. All demographics said they reduced their use of over-the-counter pain relievers and prescription pain medicines. Over the counter drug purchases fell by 71% and prescription painkillers fell by 35%.

It seems by consuming cannabis, people are focusing more on the benefits of wellness. Bad habits like alcohol and cigarettes drop as consumers look to cannabis to feel better and contribute to an overall wellness behavior.

 

 

 

 


StaffStaffJanuary 15, 2019
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5min5341

Mainstream consumer goods companies continue to throw out their fears of the cannabis industry and instead are embracing all things CBD (cannabidiol.) Last week it was the shoe chain DSW (NYSE: DSW) that signed on with Green Growth Brands (CSE: GGB) to sell its CBD products in the shoe stores. Today Tilray announced it was going to work with Authentic Brands and provide the CBD for its over 50 brands of goods.

These companies are pursuing topicals for skin like foot creams, lip balms, and muscle rubs.  CBD beverages though also show great promise for big brand companies. Cannabis research company Brightfield Group said in 2019 to look to continued CBD growth in mainstream retailers and more CPG (consumer packaged goods) companies are entering the space.

The beverage company New Age’s announcement of plans for a new line of CBD-infused beverages – a reveal that caused stocks to surge 528% is a sign that CBD is banging down mainstream products doors said Brightfield.

The only problem is that CBD tastes, well, funky. It’s usually described as having a bitter, earthy taste that takes some getting used to. The key to getting CBD beverages accepted by mainstream consumers will is fixing for the taste problem.

Seattle-based Tarukino developed an emulsion technology called Sorse. that has solved for consistency and taste by encapsulating cannabinoids in a water-soluble form that is odorless, tasteless and dissolves in water.

“The cannabis beverage industry today consists of products that smell like cannabis, taste bad and have an effect onset that takes longer than 20minutes. Tarukino solves all these issues,” said CEO Howard Lee.

The company has teamed up with California-based Caliva to bring cannabis beverages to the market. Caliva already produces flower, pre-rolls, and vapes and is known for its wellness options. Its products focus on motivating the mind, steadying the body, and inspiring creativity. Now it’s tinctures and beverages will use Tarukino’s technology in an exclusive agreement.

“After extensive due diligence, we are confident that Tarukino is the right nano-emulsion technology company to partner with,” said Dennis O-Malley, Caliva’s CEO.

According to sales rankings this past summer from Headset, the Caliva ranked as a top brand across its three product categories: pre-roll, flower, and vaporizer. In the pre-rolled joint category, Caliva led the rankings in the top five slots with its House Doobies, Dogwalkers, Super Sessions, and Toasties. In the cannabis flower category, the top four spots belonged to Caliva as well, with the company’s breakout hit Reef Leaf taking the top slot.

“Our rankings have become a key indicator of quality and scale in California,” says Cy Scott, CEO of Headset. “The category, segment, brand, and product trends continue to tell the narrative of the growth in the California cannabis market, and looking at real-time sales data, Headset is identifying which companies are establishing themselves as the major brands as this market evolves into the world’s largest cannabis economy.”

The first beverages are expected to be available for purchase in the first quarter of 2019 in the San Jose store.

 


Debra BorchardtDebra BorchardtDecember 24, 2018

5min4240
President Trump signed the 2018 Farm Bill last week that included provisions that eliminate several federal barriers to the cultivation, production, and commercial development of hemp and hemp products. It also eliminated hemp from Schedule I of the Controlled Substances Act. “Hemp” is now defined as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol [THC] concentration of not more than 0.3 percent on a dry weight basis.”
The Food and Drug Administration (FDA) issued a statement by Commissioner Dr. Scott Gottlieb on the agency’s regulation of products containing “cannabis and cannabis-derived compounds,” in which the Commissioner acknowledged there are “pathways” for FDA to consider “circumstances in which certain cannabis-derived compounds might be permitted in a food or dietary supplement.”
Many people immediately assumed that with the signing of the bill, hemp-derived CBD and products made with hemp-CBD would be legal. The FDA has the authority to regulate products containing cannabis or cannabis-derived compounds, and declared that such ingredients – clearly including hemp and hemp derivatives, such as cannabidiol (CBD) – are treated “as we do any other FDA-regulated products.”
Gottlieb restated FDA’s concerns over “drug claims being made about products not approved by the FDA that claim to contain CBD or other cannabis-derived compounds,” as well as the agency’s position that under the Food, Drug, and Cosmetic Act (FD&C Act) it is “unlawful … to introduce food containing added CBD or THC into interstate commerce, or to market CBD or THC products as, or in, dietary supplements, regardless of whether the substances are hemp-derived.”
Dr. Gottlieb also emphasized that FDA “has authority to issue a regulation” that would allow these naturally-occurring hemp compounds in a food or dietary supplement. He also stated that FDA is now evaluating whether to pursue such a process and clarified that the agency “would only consider doing so” if it determines “that all other requirements in the FD&C Act are met, including those required for food additives or new dietary ingredients.”
“The food and supplement industry should read Dr. Gottlieb’s statement first and foremost as an indication that FDA shares our desire for hemp and CBD products to be properly regulated under federal law, and now recognizes its statutory authority to address the agency’s view of the prior-drug status of some Cannabis compounds through rulemaking,” noted American Herbal Products Association (AHPA) PresidentMichael McGuffin. “The relevance of this authority was first seen by AHPA’s Cannabis Committee over two years ago, and AHPA identified this publicly in May of this year as an approach that FDA should be encouraged to consider.”
“At the same time, the Commissioner’s emphasis on the legal requirements that must be met for food additives or new dietary ingredients (NDIs) is a clear signal of FDA’s thinking, and we should not be surprised if any forthcoming FDA action focuses on compliance with the law’s provisions for NDI notifications for supplement ingredients, and for hemp ingredients used in foods to meet the provisions to establish these as generally recognized as safe (GRAS) under the law,” added McGuffin.
Commissioner Gottlieb’s statement also announced that FDA intends to convene a public meeting in the near future to discuss products that contain hemp-derived ingredients, including food and supplement products.
“AHPA has been engaged in issues related to the safe use and responsible commerce of lawfully marketed products derived from Cannabis since 2010 and we will continue to actively participate in any and all relevant FDA meetings and rulemaking activities,” noted Jane Wilson, AHPA’s Director of Program Development and liaison to the AHPA Cannabis Committee.

Debra BorchardtDebra BorchardtDecember 17, 2018
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3min3470

Tilray, Inc. (NASDAQ: TLRY  )  has signed a binding letter of intent (LOI) to purchase hemp-derived CBD isolate from LiveWell Canada Inc. (CSE: LVWL), which will be sourced from the United States and Canada.  Hemp CBD is estimated to be a $22 billion market in the U.S. The product will be used for distribution of Tilray-owned wellness and medical products across North America.

LiveWell will supply Tilray with a minimum of 150 kilograms per month of wholesale CBD isolate cultivated and processed from hemp commencing in February 2019, through to July 2019. The amount then increases to a minimum of 300 kg/month for the remainder of the contract, until December 2019. Tilray has the option to increase the amount of CBD supply purchased to 500 kg/month, and there is an additional 12-month renewable option.

“Today’s announcement puts Tilray in a strong position to expand the availability of our products in existing and new potential markets,” says Brendan Kennedy, Tilray CEO. “We’re pleased about the opportunity to increase our capacity to supply high-demand CBD products in Canada.”

The recently passed 2018 Farm Bill in the U.S. presents an opportunity to enter the hemp-derived CBD industry and capitalize on it. The bill needs to be signed by President Trump, which is expected to happen this week before lawmakers leave for the holidays.

“We are pleased to have a strong partner such as Tilray in this emerging market,” said David Rendimonti, President and CEO of LiveWell Canada. “With the legal barriers lifting, we believe the market for hemp CBD could exceed all forecasts because of the huge shift to self-directed care and wellness among consumers.”

Regulations in Canada allow for the use of hemp as a source of CBD, as long as the product satisfies certain quality requirements. These new rules will allow for wholly-owned Tilray Inc. subsidiaries, Tilray Canada Ltd. and High Park Farms Ltd. to potentially utilize hemp-derived CBD to increase the supply of CBD medical and wellness products in Canada.

LiveWell Merger

On December 3,  LiveWell signed a binding letter of agreement to merge with Vitality CBD Natural Health Products Inc., one of the largest industrial hemp cultivation and extraction operations in North America, with approximately 20,000 acres harvested in 2018. The merger will bring together the U.S. and Canadian assets to create one of the first fully integrated CBD companies with a production capacity of CBD isolate anticipated to reach 3,000 kilograms per day by mid-2019; research, product development, and GMP manufacturing facilities; international sales and distribution networks; and experienced leadership



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