CBD Archives - Page 2 of 6 - Green Market Report

Julie AitchesonJulie AitchesonFebruary 6, 2020
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4min22090

Remember the term ‘pinkwashing’? Where companies slapped a pink ribbon on just about anything and claimed to be donating lots of money to breast cancer research? It’s happening again, but this time it’s in the cannabis industry.

“Weed washing” is a disturbing trend that appears to be most dominant in the beauty industry and refers to the act of adding hemp oil that does not contain CBD or only contains a minuscule, non-therapeutic amount to a product in order to capitalize on CBD’s popularity and high price point. So what is the key difference between the properties of hemp seed oil and hemp oil that contains CBD? Hemp seed oil, which has been compared to jojoba or rosehip seed oil (known for their nourishing and anti-inflammatory properties), is derived from hemp seeds (which contain 0% THC), typically through cold-pressing. CBD oil is derived from the flowers, leaves, and stalks of the hemp plant and commonly derived through CO2 or ethanol extraction.

Claire McCormack, reporting for Beauty Independent, found that many beauty brands use the combination of incorporating hemp seed oil as an ingredient, cannabis leaf imagery on the label, and buzzwords like “calm”, “de-stress”, and “blissed out” to lure customers with the false promise of CBD. Weed washed products by such big-name brands as Sephora, Origins, and The Body Shop are all called out in McCormack’s piece for deliberately misrepresenting the CBD content (or lack thereof) in their new skincare lines.

Due to what health information site Healthline calls “the green rush” (referring to the entrepreneurial eagerness to jump on the CBD bandwagon), customers are more vulnerable to wasting their money on weed washed, non-therapeutic products than ever before. Teadora, a vendor of natural and organic skincare products using ingredients sustainably sourced from the Brazilian Amazon, offers a set of guidelines to avoid being “weed washed”. Their simple steps for knowing what to look for when scanning the labels of products that feature CBD as an ingredient include: ensuring that the ingredient is listed as “full-spectrum hemp”, “cannabinoid” or “cannabidiol” rather than simply “hemp oil”; looking for at least 50 mg of CBD in the product for anti-inflammatory properties, 100 mg for anti-aging properties, at least 200mg for pain relief; and knowing your source. 

These guidelines emphasize the larger point that even if beauty products do contain CBD, the concentration may not be high enough to provide any therapeutic effect. This could drive consumers away from CBD-enhanced products if they feel they are not seeing benefits that warrant the higher price tag, cutting this growing market short before it has a chance to fully mature.

While consumers and producers wait on more definitive federal guidelines regarding the manufacturing and marketing of beauty products that claim the healing benefits of CBD, weed washing remains rife within the industry and the need for comprehensive consumer education more pressing than ever. 


Kaitlin DomangueKaitlin DomangueFebruary 5, 2020
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3min4780

It’s time for your Daily Hit of cannabis financial news for February 5th, 2020. 

On the Site

Business Strategy For Psychedelic Companies

The Green Market Report hosted its first conference on Psychedelic Investing in New York City on January 24. This panel was titled “Business Strategy For Psychedelic Companies.

Journalist Jeremy Berke of Business Insider moderated this panel.

Atai Life Science CEO, Florian Brand, was on the panel along with Shlomi Raz, the founder of Eleusis. The two were joined by Dr. Terry Kelly, the CEO of Perception Neurosciences.

Tilray Restructures, Cuts Workforce, Stock Rises

Canadian cannabis producer Tilray (NASDAQ: TRLY) said it was restructuring and cutting roughly 10% of its workforce. The stock was moving almost 2% higher on the news in pre-market trading to $18.50.

“By reducing headcount and cost, Tilray will be better positioned to achieve profitability and be one of the clear winners in the cannabis industry, which will drive value for our investor and employee shareholders,” said Chief Executive Brendan Kennedy in a statement.

74% of CBD Buyers Own Pets

A new industry report from Nielsen (NYSE: NLSN) and cannabis data provider Headset has highlighted the impact of hemp-based cannabidiol (CBD) on the U.S. pet care market. According to the 2020 Pet Industry Green Paper by Nielsen and Headset, hemp-based CBD pet products will represent 3-5% of all hemp CBD sales within the U.S. by 2025.

Key takeaways:

  • Pet products have logged over $9.4 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada, and Washington combined (Q1 2018 through Q3 2019).
  • To date, 24% of pet owners use hemp-CBD either for themselves, their pet(s), or for both.

In Other News

Aurora Cannabis to Cut Workforce By 10%

Cannabis company Aurora has announced they are cutting their workforce by 10%. Shares are down 1% after hours. This comes right after the announcement of Tilray’s plans to also cut their workforce by 10%.


Kaitlin DomangueKaitlin DomangueJanuary 29, 2020

2min8340

US-based company, EcoGen Labs, is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. 

EcoGen Labs is a vertically-integrated, seed-to-sale manufacturer and supplier of specialty hemp-derived ingredients and proprietary formulas in the United States. The company also produces private-label finished product, as well as providing unique genetics.

Since its launch in 2016, the company has expanded rapidly, producing over $80 million in revenue last year. EcoGen supplies nearly 70% of the ingredients used in various retailers across the US, including Whole Foods, Sephora, and CVS Health Corp.

Alexis Korybut, the Co-Founder of EcoGen says “We are very encouraged by the strong support we’ve received from the institutional marketplace. This investment is an important step forward that will allow us to further grow and expand our business.”

EcoGen has a solid strategy for the utilization of this transaction, the plans include supporting the further development of its facilities, focusing on its research and development, and the expansion of marketing and sales divisions. Advancing the company’s seed and genetics, the expansion of private-label finished goods, and new technologies are also on the agenda for EcoGen.

“With engineering as a passion and also my background, the prospect of new innovation is what led me to this industry,” says Joseph Nunez, Co-Founder of EcoGen. “When we first started, we were on a mission to create a state-of-the-art process to produce exceptionally pure CBD that set the standard for the industry. We’re proud to say that goal was quickly achieved and this capital raise will allow us to expand that success into other verticals of the business.”

EcoGen also has plans to develop their new national headquarters on a nearly-20 acre property located in Grand Junction, Colorado. When development is complete it will include everything from seed production to the making of CBD products.


Kaitlin DomangueKaitlin DomangueJanuary 27, 2020
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4min4100

Its time for your Daily Hit of cannabis financial news for January 27th, 2020. 

On the Site

Troubles Continue For Sunniva, Company Announces Ceasing Operations Of Full-Scale Distributors, LLC

Sunniva (OTCMKTS: SNNVF), a Canadian cannabis company announced the closing of wholly-owned subsidiary Full Scale Distributors, LLC set to take place in February 2020. “The closing of FSD is a necessary step that will eliminate the cash outlay required to operate that business,” said Dr. Anthony Holler, Chairman & CEO of Sunniva Inc. “We continue to focus on the preservation of our available funds to allow us to actively defend Sunniva’s rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse.” The company cannot file for bankruptcy because of cannabis’s federally illegal status. 

The Year Ahead for CBD

Farmers experiencing demand and profit surges since converting their land for hemp cultivation were profiled in a CNN report in April that projected sales of hemp products to be over 2.2 billion dollars by 2022. Despite these positive projections, the hemp industry has experienced its share of problems, as outlined in an October article by Iris Dorbian for Forbes.com. These issues include a lack of widespread, scientifically sound information about the legality and benefits of CBD products, which often deters retailers from carrying hemp products. 

Though projections may vary, there do appear to be strong commonalities that provide a clarified, if not completely clear, view of what 2020 holds for the CBD/hemp industry.

Airvape X Review: A Modern Multi-function Device

The few minor flaws (battery life and chamber size) with the Airvape X are greatly outweighed by the many positive aspects of the vaporizer. The change from smoking to purely vaporizing has a noticeable impact on the health of your lungs. Strong rips, easy to clean, does not take long to charge, and we are happy campers over here.

When our own Airvape X unit dies out from our daily use then we plan to replace it with another considering how great it has been to have.

In Other News

Indiana’s Smokeable Hemp Ban Moves to Federal Appeals Court

Indiana initially passed the ban on smokeable hemp in July, but it was put on hold by a federal judge. The state is attempting to revive it and The Midwest Hemp Council and seven Indiana hemp wholesalers are challenging the state’s action. 


Julie AitchesonJulie AitchesonJanuary 27, 2020
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4min12790

To say that 2019 was a boom year for the CBD industry would be a massive understatement, and 2020 is primed to top the record sales and product innovation that have come to characterize this surging market.

On December 20, 2018, President Trump signed the Farm Bill into law, a move which removed hemp from the government’s controlled drug category and spurred farmers across the country to repurpose agricultural land previously used to grow feed and food crops such as corn and alfalfa for hemp varieties with high CBD and low THC (.3% or less) content. Farmers experiencing demand and profit surges since converting their land for hemp cultivation were profiled in a CNN report in April that projected sales of hemp products to be over 2.2 billion dollars by 2022.

Market activity in 2020 will go a long way towards determining whether or not hemp’s profitability can sustain its robust trajectory. Alexi Korybut, CEO of EcoGen Laboratories (one of the largest hemp manufacturers and suppliers in the U.S.) predicts that CBD consumers will skew increasingly Baby Boomer and become more conscientious about the quality and safety of the products they buy. Korybut also projects a greater focus on other cannabinoids such as CBG and CBN as their specialized effects become more widely known.

A 2020 forecast by Rich Maturo of information, data and measurement firm Nielsen predicts that cannabinoid education efforts, especially those targeted towards health care providers, will greatly increase in 2020. (Nielsen data shows that primary health care providers do more than any other demographic to drive brand loyalty and customer usage in the CBD market.) In addition, Maturo projects that CBD prices will fall while the number of hemp farmers entering the industry will continue to rise, as will the percentage of current farmers increasing acreage dedicated to hemp cultivation.

Despite these positive projections, the hemp industry has experienced its share of problems, as outlined in an October article by Iris Dorbian for Forbes.com. These issues include a lack of widespread, scientifically sound information about the legality and benefits of CBD products, which often deters retailers from carrying hemp products. In addition, changing regulations make it difficult for manufacturers and retailers to keep up as new data emerges about drug interactions and the viable use of CBD as a food additive.

The quality and efficacy of products vary greatly as consistent industry-wide standards are still in process. Dorbian cites a press release from CEO of ValidCare Patrick McCarthy, who echoes Alexis Korybut’s predictions of a growing emphasis on safety and quality, escalating Baby Boomer consumption, and interest in CBG and CBN as features of the hemp industry’s growth in 2020.

Though projections may vary, there do appear to be strong commonalities that provide a clarified, if not completely clear, view of what 2020 holds for the CBD/hemp industry.  What is clear is that the impact of hemp-derived cannabinoids will be felt in the health care industry, agricultural system, and consumer market far beyond the coming year.

 


Julie AitchesonJulie AitchesonDecember 6, 2019
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5min10420

Skateboarding has long been considered an “outlaw” sport on the recreational spectrum, attracting those for whom the structure and homogenous culture of organized athletics holds little appeal. Its anti-establishment origins, outlined in greater detail in this 2013 Skateboarding Magazine article, can be traced back to surfer culture, as wave riders realized there might be a way to surf city streets with the same élan and excitement that they applied to hanging ten in the water.

Both snowboarders and skateboarders have been associated with having a friendly relationship with cannabis. There is speculation that the original California high schoolers that met at 420 to get high, most likely rode on skateboards. Snowboarding’s admittance into the Olympics made many athletes ponder kipping the event if they had to give up smoking pot. The Olympics seemed to look the other way. Many professionals in both sports made no effort to hide their love of cannabis, which kept the rebellious nature of skateboarding intact.

But in recent years, skateboarding has moved away from the fringes and into the limelight with the popular X Games, an extreme sports event produced, hosted, and broadcast by ESPN, and demonstrated by the fact that skateboarding will be an official Olympic sport in Tokyo in 2020. This has given rise to some concern that the stereotype of the stoner skater will be proven true enough to keep some of the sport’s top athletes out of contention, as it did skateboarder Corey Juneau. Ranked seventh in the world, Juneau was suspended for six months after testing positive for THC in 2018.

As skateboarding’s competitiveness, popularity, and main street respectability grow, some of the sport’s biggest names are stepping out in front of companies that promise clean, potent, risk-free performance enhancement through CBD. Michael Apstein, a founding partner of Primary Growth Partners, says that “There is a long history of outlaw brands from other market segments breaking through to the general market – from surfing and skateboarding to extreme sports and certainly in music, apparel and recreation brands.” As the benefits of CBD gain visibility in all corners of the marketplace, skateboarding’s top athletes are endorsing products that provide low THC or THC-free alternatives to marijuana. Old school skateboarding legend Tony Hawk has even developed Birdhouse CBD Balm by producer Canna Hemp, a line of CBD recovery creams that target the epic aches and pains of the action sports market.

 

Professional skateboarder Andy McDonald, 23-time X Games medalist and 10-time world champion, recently partnered with CBD manufacturer Extract Labs to spread the word about the benefits of CBD for extreme sports athletes. McDonald, who used his platform as a professional skateboarder to take an anti-drug message all the way to the Clinton White House, credits the pain-alleviating benefits of hemp-derived CBD for helping him manage the cumulative effects of over 35 years of skating.

Social CBD, a company that markets a range of hemp-derived CBD products that guarantee a 0.0% THC content, recently hooked X-Games Skateboarding gold medalist Nyjah Huston as a spokesperson. Huston stakes his legacy as the winningest skateboarder in history on Social CBD’s promise to deliver a product pure enough to endure the scrutiny of the Olympic committee.

As skateboarding continues to move deeper into the mainstream of competitive sports, its shining stars will no doubt continue to seek out the healing benefits of CBD and the sponsorship dollars of those companies intent on making it the must-have, performance-enhancing supplement for extreme athletes.


Video StaffVideo StaffNovember 4, 2019

1min10630


Riley Cote is a Canadian former professional ice hockey left winger. Upon retiring from the Philadelphia Flyers Riley founded the Hemp Heals Foundation, a 501c3 non-profit organization that promotes cannabis/hemp as a viable renewable resource. Cote is a co-founder of Athletes For Care, a not-for-profit organization dedicated to creating a community where athletes can find support, opportunity, and purpose in life after a career in sports. Cote is currently launching a product line – BodyChek Wellness, a line of hemp-based personal care products whose mission is to optimize everyday performance and challenge individuals to rethink the healing process. The line reinforces Cote’s passion to help individuals discover safe nontoxic methods for pain management and self-healing.

This interview was conducted by Michael Miller of LA Weekly at the Green Market Summit in Los Angeles. Thank you for watching the Green Market Report! Be sure to subscribe to stay up to date with marijuana money.


Debra BorchardtDebra BorchardtOctober 22, 2019
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4min10590
The U.S. Food and Drug Administration and the Federal Trade Commission posted a joint warning letter dated October 10, 2019 to Rooted Apothecary LLC, of Naples, Florida, for illegally selling unapproved products containing cannabidiol (CBD) online with unsubstantiated claims that the products treat teething pain and earaches in infants, autism, attention-deficit/hyperactivity disorder (ADHD), as well as Parkinson’s and Alzheimer’s disease, among other conditions or diseases.
The company used product webpages to make unfounded medical claims about its CBD products, and some of the products were also unlawfully marketed as dietary supplements. The agency has determined that CBD products cannot be marketed as dietary supplements.
The letter read, “The FDA has determined that your “Teeth/TMJ – Essential Oil + CBD Infusion,” “Ears – Essential Oil + CBD Infusion,” “Hemp Capsules, 750 mg,” “Hemp Infused Body Butter,” and “Hemp Oil” products are unapproved new drugs sold in violation of sections 505(a) and 301(d) of the Federal Food, Drug, and Cosmetic Act (the FD&C Act), 21 U.S.C. 355(a) and 331(d). Furthermore, these products are misbranded drugs under section 502(f)(1) of the FD&C Act, 21 U.S.C. 352(f)(1). “
The letter noted that “Adequate directions for use” means directions under which a layperson can use a drug safely and for the purposes for which it is intended. “Your products are offered for conditions that are not amenable to self-diagnosis and treatment by individuals who are not medical practitioners; therefore, adequate directions for use cannot be written so that a layperson can use these drugs safely for their intended purposes.”
It went on to say “It is unlawful under the FTC Act, 15 U.S.C. § 41 et seq., to advertise that a product can prevent, treat, or cure human disease unless you possess competent and reliable scientific evidence, including, when appropriate, well-controlled human clinical studies, substantiating that the claims are true at the time they are made.” The letter cited the product POM Wonderful, a pomegranate beverage that is suggested to be healthy.
The company has 15 days to correct its violations.

Debra BorchardtDebra BorchardtOctober 21, 2019
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3min26531

2019 FIFA Women’s World Player of the Year, two-time Women’s World Cup champion and Olympic gold medalist, Megan Rapinoe will be sponsored by the women-owned sports recovery brand called Mendi

Designed with athletes in mind, Mendi’s first line of products is made with legal hemp CBD. Professional athletes can’t run the risk of registering positive results for trace amounts of THC  from a drug test. 

The statement said that Rapinoe would spearhead Mendi’s ‘Athlete Ambassador Program’ lending her voice and vision to amplify the brand’s presence. Rapinoe is expanding on her previous role with the group as a strategic partner and board advisors. The soccer star will be working with Mendi to find innovative ways to expand the athlete program so that more progressive standout players in other sports can be at the frontline advocating for player health and safety.  Megan’s valuable and growing role is a continuation of her entrepreneurial spirit and momentum she’s established with her twin sister, Rachael Rapinoe. 

“As a tool, CBD has been integral in Megan’s training and recovery program for the past few years,” said Rachael Rapinoe, CEO of Mendi. “She’s seen the massive potential for more people to adopt CBD into their recovery regimens and saw a need to do something about it by partnering with us to make sure we do it right.” 

Rapinoe catapulted to stardom as the women’s soccer team won the World Cup this year. The deal with Mendi is the first partnership she has announced with any brand since the World Cup. As an advocate for equal pay and inclusion, Megan wants this partnership to raise awareness of implementing diversity, inclusion, equal pay, equality, and justice into our communities and workplaces.

“By partnering with Mendi, we have the opportunity to work with Megan to make a difference and walk the walk,” said Rachael. “We’re not waiting for equal pay. It’s here today. We’re taking a proactive role to do something about it by building a business that cares for the athlete’s best interest and assembles our own team of industry vets that share these values and the passion to change the game for good. We’re building a brighter future for sports both on and off the field so we can pass the torch to the next generation of athletes.” 

Mendi currently offers three products, gel caps, gummies and a salve stick.



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