Chain Drug Review, July 8, 2019

30 Chain Drug Review July 8 2019 Personal Care Report CBD Growth explosion foreseen for hemp and CBD industries WASHINGTON One of the hottest trends affecting a number of retail categories is the growing influence of products containing cannabis or cannabis derived compounds including hemp and cannabidiol CBD By 2025 according to data from Nielsen the U S hemp based CBD industry could be worth 6 billion when considering legalized sales of food and beverage products containing CBD from hemp Some consumers Nielsen says are finding CBD from hemp appealing for the natural benefits of the cannabinoid compound without tetrahydrocannabinol THC the psychoactive compound found in cannabis that produces the high While there are areas in the U S where marijuana is legal edible products containing CBD from hemp remain regulated by the Food and Drug Administration Nielsen also reports that consumers will likely use cannabis for a variety of reasons outside of recreation For U S adults who report they would likely consume cannabis if it were legally available the top reasons are all tied to ailment treatment chronic pain 85 mental health 82 minor injuries 81 sleep 77 and relaxation 74 Some future CBD consumers according to Nielsens analysis may look to CBD infused food offerings to enhance focus promote relaxation and assist in improving their general health and wellness For others consumption may be geared toward targeting specific ailments such as feminine pain digestive issues and sleep disorders Therefore consumer packaged goods snack companies interested in reaching these consumers should start factoring various need states use cases and snacking occasions into their research and development Despite the rapid growth and influence of this industry questions remain In May the Food Marketing Institute FMI participated in the FDAs public hearing regarding products containing CBD as the agency considers whether and how to create a legal pathway for such products FMI conveyed the seriousness of the regulatory ambiguity facing its member companies and their shoppers amidst the momentum of these products in the marketplace and it also appealed to the FDA for additional clarity Given the complex regulatory landscape and growing consumer interest in products containing hemp especially CBD FMI regularly fields a wide range of questions from member companies that understandably seek clarity about the current regulatory framework for the sale and labeling of these products said FMI president and chief executive officer Leslie Sarasin A challenge for the industry Sarasin added is that the Agricultural Improvement Act or Farm Bill of 2018 contains several provisions that allow for the cultivation production and commercialization of industrial hemp and hemp derivatives such as CBD However the new law did not alter FDAs authority over the use of such ingredients in FDA regulated products not to mention the role of other regulatory agencies and the states Food retailers recognize the confusion among the public suppliers and retailers and state regulators as a result of the Farm Bill language It remains our intention to be in full compliance with all FDA requirements As such we seek appropriate assurances regarding the safety of these products and the legality of how and where they are merchandised Sarasin said adding that she is pleased that the FDA gave FMI the opportunity to present oral comments at the agencys public hearing and said the industry welcomes the opportunity to be a resource to the agency throughout this regulatory process We look forward to working with the FDA U S Department of Agriculture and Congress to ensure U S grocery shoppers can have full confidence in these products In the meantime many mainstream outlets including grocery stores are beginning to sell CBD products Kroger Co for example has confirmed that it plans to begin selling topical products infused with CBD in 945 stores across 17 states Like many retailers we are offering our customers a highly curated collection of topical products like lotions balms oils and creams that are infused with hemp derived CBD a Kroger company spokeswoman said in a statement CBD is a naturally occurring and nonintoxicating compound that has promising benefits and is permitted within federal and state regulations Our limited selection of hemp derived CBD topical products is from suppliers that have been reviewed for quality and safety Consumer interest in CBD products is growing and Kroger is joining a number of retailers including Walgreens and CVS Pharmacy that are selling CBD products in some stores But legal ambiguities about the category remains an issue particularly when it comes to ingestible products Helping to clear up this ambiguity was the reason for the FDAs May hearing The CBD industry has also been carving inroads in the vitamins and supplements space with The Vitamin Shoppe for instance having recently expanded its CBD hemp extract offerings to meet consumer demand The Vitamin Shoppe said it is now a one stop destination for CBD hemp extract with 390 stores in 31 states offering a variety of product forms including soft gels aromatherapy oils liquid drops and a forthcoming rollout of CBD natural beauty products as beauty is another category in which CBD is making an impact Sharon Leite CEO of The Vitamin Shoppe said The customer relationship is the cornerstone of The Vitamin Shoppes reinvention and our customers have told us loud and clear they want CBD in an assortment of forms We have more than 40 years of experience in the supplements industry and we want to continue to serve as a reliable place our customers can purchase products they desire and trust including CBD hemp extract The Vitamin Shoppe launched a full line of CBD hemp extract essential oils by SpaRoom in March and followed up on its success in April with the introduction of Irwin Naturals Full Spectrum Hemp Extract softgels and Garden of Life Broad Spectrum CBD hemp extract liquid drops The company is also introducing CBD hemp extract products by Solaray with Uncle Buds skin care products and more to follow We have strict safety and regulatory standards at The Vitamin Shoppe when it comes to inviting brands into our business said Leite We have strategically chosen to partner with reputable brands that meet our high standards with third party testing and quality ingredients The Vitamin Shoppes goal according to Leite is to be first to market with innovative products as well as to provide its customers the education guidance and services essential to helping them live their best life however they define it Expanding our CBD hemp extract product assortment is just another example toward us fulfilling that promise she said CBD hemp extract according to those in the industry supports the bodys endocannabinoid system and the endocannabinoid system in turn helps to balance many of the bodys physiological systems CBD hemp extract does not have psychoactive effects But more evidence as to just how ubiquitous the CBD market has become is that CBD is showing up in a variety of food products and soon even ice cream Famed Vermont based ice cream maker Ben Jerrys known for its colorfully named flavors such as Half Baked and Magic Brownies said it plans to seize on the CBD trend in food by committing to include CBD in its ice cream innovations Once all the legalities regarding CBD are ironed out at the federal level the company said it will begin making CBD infused ice cream Were doing this for our fans said CEO Matthew McCarthy Weve listened and brought them everything from nondairy indulgences to on the go portions with our pint slices We aspire to love our fans more than they love us and we want to give them what theyre looking for in a fun Ben Jerrys way Ben Jerrys is looking into sustainably sourced CBD from Vermont Values led sourcing according to the company is an important part of Ben Jerrys product development By using high quality sustainably sourced ingredients the company helps to support a linked prosperity model within Ben Jerrys supply chain making sure Ben Jerrys is positively impacting every community of which it is a part Another example as to the extensive reach of the CBD market and its widening footprint is the formulation of products for pets According to the report Pet Supplements in the U S 7th Edition from market research firm Packaged Facts these are exciting and innovative times for the pet supplements industry Packaged Facts research reveals that pet supplements have rebounded from the sluggish annual increases following the Great Recession Pet supplement sales growth has increased steadily since 2014 The strongest year of the current five year period 2018 registered 5 growth in U S retail sales driven by factors including the improved economy the overall pet markets strong ongoing focus on health and wellness and the still growing impact of pet owners who view their pets as family members At the same time present and future growth in the segment likely hinges on greater acceptance of the expanding array of CBD pet supplement products The explosion of CBD onto the market has had a kind of halo effect spawning a burgeoning new product segment and putting a spotlight on the market as a whole that is expected to last for years Through the years the pet supplements market has benefited from the popularization and crossover of various ingredients from the human side such as glucosamine and omega fatty acids said David Sprinkle research director for Packaged Facts Looking back however its hard to recall anything making more of a splash in both human and pet supplements than CBD Even with regulatory issues yet to be settled Packaged Facts consumer survey data show that among pet owners 39 of dog owners and 34 of cat owners agree that they like the idea of CBD supplements for their pets Additionally 29 of dog and cat owners agree that they would be interested in purchasing CBD supplements for their pets if they were legal But even when taking the uncertainty of future regulations into account CPG food and drink companies Nielsen concludes should prepare for the next phase of opportunity as more states legalize cannabis and laws governing CBD from hemp evolve and become less ambiguous Many outlets are beginning to sell CBD products