Innovation Briefing Volume 2

by Will Eyman
10.11.2021
Author: Nicole Brown
October 11 – 10 min read

What’s new, what’s next, and what it means for our business.

Published monthly, the OBX Innovation Briefing is presented by the OBX team as a way of highlighting the latest developments and innovations within the global cannabinoid industry. Each curated volume features insights and commentary on industry and category trends, regulatory updates, key initiatives, and upcoming events.

 

Brand News

Prima Doubles Retail Footprint with Expansion to The Vitamin Shoppe

  • The Vitamin Shoppe is elevating its CBD assortment, adding wellness brand Prima to over 575 U.S. locations and its website. In turn, this will double Prima’s retail footprint.

  • Prima’s customer breakdown is 80% women and 20% men. Vitamin Shoppe demographic is approximately 50% male and female. Sports nutrition gears more towards men, while vitamins lean toward women. Covid-19 has inspired customers to shop between the two categories more often, and one-third of customers now purchase from both.

Corona Beer Maker Constellation Supports Launch Of New CBD Beverage, Combining Two Portfolio Brands

  • Karma Water, a CBI Venture, is partnering with Canadian cannabis giant Canopy Growth to launch a new CBD water, building upon its existing portfolio of wellness and probiotic waters.

  • Both Karma and Canopy Growth are strategic partners of Constellation Brands (CBI), the largest beer import company in the U.S., responsible for brands like Corona and Negra Modelo. The market entrance of Karma CBD Water highlights the power of collaboration between emerging businesses with distinct consumer value propositions within the ecosystem in which the three brands operate.

  • The brand, dubbed Karma CBD Water, uses broad spectrum CBD distillate sourced from Canadian cannabis giant Canopy Growth’s U.S. hemp biomass. Constellation owns 38.6% of Canopy Growth, and acquired a minority stake in Karma Culture, LLC, the makers of Karma Wellness Water, in 2019. The company already distributes the company’s CBD beverage Quatreau.

Drink Up! Hexo And Molson Coors’ Joint Venture Expands Veryvell CBD Line To 17 States

  • Truss CBD USA, a joint venture by Molson Coors Beverage Company and HEXO USA Inc, a subsidiary of HEXO Corp reported Wednesday the expansion of Veryvell, a line of hemp-derived CBD and adaptogen beverages. Following a successful Colorado launch in 2020, Truss CBD USA is now expanding Veryvell semi-nationally to be available in 17 states.

  • Residents in Alaska, Arkansas, Colorado, Connecticut, Florida, Iowa, Kentucky, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia and West Virginia can now get Veryvell delivered right to their door via direct-to-consumer online purchase at www.trusscbdusa.com.

CBD in the C Store

  • Females are actually the majority of CBD users (60 percent) vs. males, with the bulk falling in the Generation Z age bracket (45 percent), according to research from High Yield Insights. Generation X makes up 28 percent of users, while boomers and seniors represent 26 percent.

  • According to research from Management Science Associates, which surveyed more than 100,000 people in the U.S., the specific age range for male CBD users is between 18 and 49, while female CBD users fall within the 18- to 34-year-old range.

  • In terms of the reasons CBD users shop for products, as of the research conducted in 2019 and 2020 by Management Science Associates, the No. 1 reason is to temporarily relieve minor aches and pains (77 percent). Other reasons include relieving chronic pain (75 percent), helping with anxiety and stress (73 percent), and helping with sleep (71 percent). Additionally, 67 percent cite using it for increased general wellness, and 66 percent use it to improve their physical health, showing there is a wellness component to the product, according to MSA.

  • Right now, gummies are the No. 1 product being sold, followed by topicals, tinctures and oils, vape pens and smokables, and drinks. Within the drinks category, which only represents 21 percent of the total space currently, non-carbonated water, fruit drinks, cola and energy/recovery shots make up 74 percent of the beverage dollars.

Canopy Growth Launching CBD Vapes in 3,000+ Circle K Convenience Stores

  • Canopy Growth Corporation has launched its first line of CBD vapes and consumers will soon be able to purchase them at Circle K convenience stores.

  • The product line, called whisl, features interchangeable pods in three formulas, each containing 200 milligrams of hemp-derived CBD with no THC.

  • The pods are designed “to deliver the wellness effects of CBD from morning, throughout the day and into the night,” with the three pods are marketed as Tune In, for focus, Intermission, for relaxation, and Fade Out, for sleep.

Yooma Wellness Acquires UK-Based Beauty Brand Vitality CBD, US-Based Sparkling Water Big Swig

  • Yooma Wellness, a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, has acquired UK-based market leader Vitality CBD Limited and Big Swig, a US-based maker of sparkling water beverages.

  • Vitality CBD is the most widely stocked brand of CBD in the UK, with products distributed in national retailers and on e-commerce retailers such as Amazon, Very, and Ocado. The Vitality CBD product portfolio has over 60 SKUs, including oils and sprays in a wide range of flavors and strengths, edibles, and a specially developed and formulated range of cannabinoid (CBD) skincare cosmetic products.

  • Yooma said the acquisition will increase its presence in retailers throughout the southern United States and add the Big Swig sparkling water and Hard Swig ‘hard seltzer’ brands to its portfolio, while also presenting opportunities to create new product offerings in the CBD and wellness space, and vertical integration with Yooma’s existing wellness platform.

Meet Juana Skin, The UAE’s First CBD-based Skincare Brand

  • Named Juana Skin, the strict focus of the skincare brand is to harness the potent power of farm-fresh CBD and combine it with therapeutic botanical extracts to create clinically-proven products that balance and de-stress people’s skin. The result is a range of five simple skincare lines, each using more than double the potency of CBD offered by the current market.

  • Recent years has seen the CBD marketplace explode worldwide, but thanks to countless certifiable tests and trials Juana Skin is set to be the first CBD-based product to be available to purchase in the UAE.

 

Industry & Regulatory Updates

California Legislature Passes Bill Allowing the Manufacture and Retail Sale of Hemp-Derived Products — Including CBD

  • On October 6, 2021, Governor Newsom signed AB-45 into law. The bill, which takes effect immediately, permits the sale of food, beverages, dietary supplements, pet products, and cosmetics containing hemp-derived ingredients, including CBD. (Though, of course, the Food and Drug Administration still maintains that CBD is not permitted in food and dietary supplements.)

  • The passage of AB-45 overrides the California Department of Public Health’s infamous FAQ prohibiting sale of all CBD products in California.

Nevada First State to Allow Veterinary CBD Treatment

  • Nevada veterinarians are the first in the nation to win permission to treat animals with cannabinoids, including CBD.

  • A new law taking effect Oct. 1 clears vets to recommend and administer hemp and cannabidiol products below 0.3% THC without fear of sanction from the state licensing board, the American Veterinary Medical Association reported in its journal.

Radicle Science and Open Book Extracts Announce New Alliance to Advance Consumer Trust and CBD Industry Validation

  • Millions of CBD consumers are asking for scientifically-validated information about the products they use. To address this need, Open Book Extracts has created The Alliance with Radicle Science, a transformative healthtech B-corp validating natural products for the first time, to advance the development of market-leading, scientifically validated CBD and cannabinoid products.

  • Together, we will redefine how new CBD and cannabinoid products are developed, ensuring the process is backed by large scale, comprehensive, and rigorous consumer use data.

  • Brands looking to develop new custom products and formulations with CBD and other cannabinoids will now be able to leverage the collective scientific expertise, extensive industry knowledge, proprietary data analytics platform and clinical trial infrastructure of the alliance to develop insights on effects of specific formulations of cannabinoid products. Those insights will help bring products to market that are specifically formulated based on rigorous evidence to address need states like chronic pain, restful sleep, and general health and well-being.

  • Together, we will redefine how new CBD and cannabinoid products are developed, ensuring the process is backed by large scale, comprehensive, and rigorous consumer use data.

Trend Pieces & Editorial

Wana Brands’ CEO Nancy Whiteman on Flexibility and the Cannabis Gummy Long Game

  • Wana Brands’ CEO Nancy Whiteman recently sat down to talk about the world of cannabis gummies with Cannabis Business Executive. With our own wide range of gummy offerings at OBX, we are seeing the same trends Whiteman speaks about in the gummy space.

  • “Build your reputation and reality that you have a better product, and the experience people have with your product is better – it tastes better, it works better, it creates specific effects that people are looking for. That’s a different way of competing, and that’s our way of competing, that’s what we do… You have to have something that truly is a differentiator for you. For many people, price is enough; they just want a plain old distillate gummy, and they’re happy to take whatever is the lowest cost , even if it doesn’t work that well or taste that great. Other people are looking for a different experience.”

Category & Research Trends

Could CBD Be The Next Innovation in the Hard Seltzer Sector?

  • A new study of eight US hard seltzer brands (AriZona SunRise, Bon V!V, Bud Light, Corona, Smirnoff, Topo Chico, Truly, and White Claw) examined eight potential added benefits (high alcohol, low alcohol, vitamins, kombucha, immunity, energy, sustainable packaging and CBD) to determine which potential product innovations consumers value most, and which will impact their willingness to pay.

  • The study found that adding CBD boosted demand by 12 percent on average, and the CBD-infused product variation drove the greatest purchase interest in the Northeast, South, and Midwest.

  • Along with the new opportunities for distribution in Southern Glazer’s Wine & Spirits, Republic National Distributing Company, and Breakthru Beverage Group, this study illuminates a promising opportunity area for growth in the CBD beverage segment.

CBD Improves Cognitive Function In Traumatic Brain Injury Victims, New Study Finds

  • Two researchers in the Department of Cell Biology & Anatomy at New York Medical College found that CBD helped improve memory and other cognitive functions for those with Traumatic brain injury (TBI), a condition that results from severe head trauma. Its victims include soldiers, athletes, and car accident victims.

  • The new study, published in the journal Experimental Neurology, found that TBI patients who were given CBD experienced improvements in various areas. In reviewing these and other studies, the Concussion Alliance wrote that “current research is pointing towards CBD serving as a neuroprotectant, possibly helping the brain heal from concussions. Findings also indicate that CBD and/or medical cannabis (marijuana) can be effective for pain management, anxiety, and insomnia, all of which are common symptoms of concussions and Post-concussion Syndrome.”

A Potential Role for CBC in Modulating TRP Channels During Acute Respiratory Distress Syndrome

  • Acute respiratory distress syndrome (ARDS) is a life-threatening clinical syndrome whose potential to become one of the most grievous challenges of the healthcare system evidenced by the COVID-19 pandemic. Considering the lack of target-specific treatment for ARDS, it is absolutely exigent to have an effective therapeutic modality to reduce hospitalization and mortality rate as well as to improve quality of life and outcomes for ARDS patients.

  • Findings suggest that inhalant CBC may be an effective alternative therapeutic target in the treatment of ARDS. In addition, Increased expression of TRPs cation channels after CBC treatment proposes a novel role for TRPs (TRPA1 and TRPV2) as new potential mechanism to interpret the beneficial effects of CBC as well as other cannabinoids in the treatment of ARDS as well as other inflammatory diseases. Importantly, delivering CBC through an inhaler device is a translational model supporting the feasibility of trial with human subjects, authorizing further research.

The Growing Potential of CBD in Dentistry

  • With the anti-inflammatory products in CBD, more oral health companies are manufacturing products that contain CBD. New uses of cannabinoids within the dental field require further investigation, but the literature does show positive results, with the addition of cannabinoids to air polishing powder, toothpaste, and oral rinses increasing product effectiveness when it comes to improving dental health.

     

Upcoming Events & Webinars

Got Innovation? If you see an interesting new brand, trend or other innovative idea, please feel free to share directly to [email protected]

Author: Nicole Brown
October 11 – 10 min read

What’s new, what’s next, and what it means for our business.

Published monthly, the OBX Innovation Briefing is presented by the OBX team as a way of highlighting the latest developments and innovations within the global cannabinoid industry. Each curated volume features insights and commentary on industry and category trends, regulatory updates, key initiatives, and upcoming events.

 

Brand News

Prima Doubles Retail Footprint with Expansion to The Vitamin Shoppe

  • The Vitamin Shoppe is elevating its CBD assortment, adding wellness brand Prima to over 575 U.S. locations and its website. In turn, this will double Prima’s retail footprint.

  • Prima’s customer breakdown is 80% women and 20% men. Vitamin Shoppe demographic is approximately 50% male and female. Sports nutrition gears more towards men, while vitamins lean toward women. Covid-19 has inspired customers to shop between the two categories more often, and one-third of customers now purchase from both.

Corona Beer Maker Constellation Supports Launch Of New CBD Beverage, Combining Two Portfolio Brands

  • Karma Water, a CBI Venture, is partnering with Canadian cannabis giant Canopy Growth to launch a new CBD water, building upon its existing portfolio of wellness and probiotic waters.

  • Both Karma and Canopy Growth are strategic partners of Constellation Brands (CBI), the largest beer import company in the U.S., responsible for brands like Corona and Negra Modelo. The market entrance of Karma CBD Water highlights the power of collaboration between emerging businesses with distinct consumer value propositions within the ecosystem in which the three brands operate.

  • The brand, dubbed Karma CBD Water, uses broad spectrum CBD distillate sourced from Canadian cannabis giant Canopy Growth’s U.S. hemp biomass. Constellation owns 38.6% of Canopy Growth, and acquired a minority stake in Karma Culture, LLC, the makers of Karma Wellness Water, in 2019. The company already distributes the company’s CBD beverage Quatreau.

Drink Up! Hexo And Molson Coors’ Joint Venture Expands Veryvell CBD Line To 17 States

  • Truss CBD USA, a joint venture by Molson Coors Beverage Company and HEXO USA Inc, a subsidiary of HEXO Corp reported Wednesday the expansion of Veryvell, a line of hemp-derived CBD and adaptogen beverages. Following a successful Colorado launch in 2020, Truss CBD USA is now expanding Veryvell semi-nationally to be available in 17 states.

  • Residents in Alaska, Arkansas, Colorado, Connecticut, Florida, Iowa, Kentucky, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia and West Virginia can now get Veryvell delivered right to their door via direct-to-consumer online purchase at www.trusscbdusa.com.

CBD in the C Store

  • Females are actually the majority of CBD users (60 percent) vs. males, with the bulk falling in the Generation Z age bracket (45 percent), according to research from High Yield Insights. Generation X makes up 28 percent of users, while boomers and seniors represent 26 percent.

  • According to research from Management Science Associates, which surveyed more than 100,000 people in the U.S., the specific age range for male CBD users is between 18 and 49, while female CBD users fall within the 18- to 34-year-old range.

  • In terms of the reasons CBD users shop for products, as of the research conducted in 2019 and 2020 by Management Science Associates, the No. 1 reason is to temporarily relieve minor aches and pains (77 percent). Other reasons include relieving chronic pain (75 percent), helping with anxiety and stress (73 percent), and helping with sleep (71 percent). Additionally, 67 percent cite using it for increased general wellness, and 66 percent use it to improve their physical health, showing there is a wellness component to the product, according to MSA.

  • Right now, gummies are the No. 1 product being sold, followed by topicals, tinctures and oils, vape pens and smokables, and drinks. Within the drinks category, which only represents 21 percent of the total space currently, non-carbonated water, fruit drinks, cola and energy/recovery shots make up 74 percent of the beverage dollars.

Canopy Growth Launching CBD Vapes in 3,000+ Circle K Convenience Stores

  • Canopy Growth Corporation has launched its first line of CBD vapes and consumers will soon be able to purchase them at Circle K convenience stores.

  • The product line, called whisl, features interchangeable pods in three formulas, each containing 200 milligrams of hemp-derived CBD with no THC.

  • The pods are designed “to deliver the wellness effects of CBD from morning, throughout the day and into the night,” with the three pods are marketed as Tune In, for focus, Intermission, for relaxation, and Fade Out, for sleep.

Yooma Wellness Acquires UK-Based Beauty Brand Vitality CBD, US-Based Sparkling Water Big Swig

  • Yooma Wellness, a global vertically integrated wellness platform that develops and markets a portfolio of CBD and wellness brands, has acquired UK-based market leader Vitality CBD Limited and Big Swig, a US-based maker of sparkling water beverages.

  • Vitality CBD is the most widely stocked brand of CBD in the UK, with products distributed in national retailers and on e-commerce retailers such as Amazon, Very, and Ocado. The Vitality CBD product portfolio has over 60 SKUs, including oils and sprays in a wide range of flavors and strengths, edibles, and a specially developed and formulated range of cannabinoid (CBD) skincare cosmetic products.

  • Yooma said the acquisition will increase its presence in retailers throughout the southern United States and add the Big Swig sparkling water and Hard Swig ‘hard seltzer’ brands to its portfolio, while also presenting opportunities to create new product offerings in the CBD and wellness space, and vertical integration with Yooma’s existing wellness platform.

Meet Juana Skin, The UAE’s First CBD-based Skincare Brand

  • Named Juana Skin, the strict focus of the skincare brand is to harness the potent power of farm-fresh CBD and combine it with therapeutic botanical extracts to create clinically-proven products that balance and de-stress people’s skin. The result is a range of five simple skincare lines, each using more than double the potency of CBD offered by the current market.

  • Recent years has seen the CBD marketplace explode worldwide, but thanks to countless certifiable tests and trials Juana Skin is set to be the first CBD-based product to be available to purchase in the UAE.

 

Industry & Regulatory Updates

California Legislature Passes Bill Allowing the Manufacture and Retail Sale of Hemp-Derived Products — Including CBD

  • On October 6, 2021, Governor Newsom signed AB-45 into law. The bill, which takes effect immediately, permits the sale of food, beverages, dietary supplements, pet products, and cosmetics containing hemp-derived ingredients, including CBD. (Though, of course, the Food and Drug Administration still maintains that CBD is not permitted in food and dietary supplements.)

  • The passage of AB-45 overrides the California Department of Public Health’s infamous FAQ prohibiting sale of all CBD products in California.

Nevada First State to Allow Veterinary CBD Treatment

  • Nevada veterinarians are the first in the nation to win permission to treat animals with cannabinoids, including CBD.

  • A new law taking effect Oct. 1 clears vets to recommend and administer hemp and cannabidiol products below 0.3% THC without fear of sanction from the state licensing board, the American Veterinary Medical Association reported in its journal.

Radicle Science and Open Book Extracts Announce New Alliance to Advance Consumer Trust and CBD Industry Validation

  • Millions of CBD consumers are asking for scientifically-validated information about the products they use. To address this need, Open Book Extracts has created The Alliance with Radicle Science, a transformative healthtech B-corp validating natural products for the first time, to advance the development of market-leading, scientifically validated CBD and cannabinoid products.

  • Together, we will redefine how new CBD and cannabinoid products are developed, ensuring the process is backed by large scale, comprehensive, and rigorous consumer use data.

  • Brands looking to develop new custom products and formulations with CBD and other cannabinoids will now be able to leverage the collective scientific expertise, extensive industry knowledge, proprietary data analytics platform and clinical trial infrastructure of the alliance to develop insights on effects of specific formulations of cannabinoid products. Those insights will help bring products to market that are specifically formulated based on rigorous evidence to address need states like chronic pain, restful sleep, and general health and well-being.

  • Together, we will redefine how new CBD and cannabinoid products are developed, ensuring the process is backed by large scale, comprehensive, and rigorous consumer use data.

Trend Pieces & Editorial

Wana Brands’ CEO Nancy Whiteman on Flexibility and the Cannabis Gummy Long Game

  • Wana Brands’ CEO Nancy Whiteman recently sat down to talk about the world of cannabis gummies with Cannabis Business Executive. With our own wide range of gummy offerings at OBX, we are seeing the same trends Whiteman speaks about in the gummy space.

  • “Build your reputation and reality that you have a better product, and the experience people have with your product is better – it tastes better, it works better, it creates specific effects that people are looking for. That’s a different way of competing, and that’s our way of competing, that’s what we do… You have to have something that truly is a differentiator for you. For many people, price is enough; they just want a plain old distillate gummy, and they’re happy to take whatever is the lowest cost , even if it doesn’t work that well or taste that great. Other people are looking for a different experience.”

Category & Research Trends

Could CBD Be The Next Innovation in the Hard Seltzer Sector?

  • A new study of eight US hard seltzer brands (AriZona SunRise, Bon V!V, Bud Light, Corona, Smirnoff, Topo Chico, Truly, and White Claw) examined eight potential added benefits (high alcohol, low alcohol, vitamins, kombucha, immunity, energy, sustainable packaging and CBD) to determine which potential product innovations consumers value most, and which will impact their willingness to pay.

  • The study found that adding CBD boosted demand by 12 percent on average, and the CBD-infused product variation drove the greatest purchase interest in the Northeast, South, and Midwest.

  • Along with the new opportunities for distribution in Southern Glazer’s Wine & Spirits, Republic National Distributing Company, and Breakthru Beverage Group, this study illuminates a promising opportunity area for growth in the CBD beverage segment.

CBD Improves Cognitive Function In Traumatic Brain Injury Victims, New Study Finds

  • Two researchers in the Department of Cell Biology & Anatomy at New York Medical College found that CBD helped improve memory and other cognitive functions for those with Traumatic brain injury (TBI), a condition that results from severe head trauma. Its victims include soldiers, athletes, and car accident victims.

  • The new study, published in the journal Experimental Neurology, found that TBI patients who were given CBD experienced improvements in various areas. In reviewing these and other studies, the Concussion Alliance wrote that “current research is pointing towards CBD serving as a neuroprotectant, possibly helping the brain heal from concussions. Findings also indicate that CBD and/or medical cannabis (marijuana) can be effective for pain management, anxiety, and insomnia, all of which are common symptoms of concussions and Post-concussion Syndrome.”

A Potential Role for CBC in Modulating TRP Channels During Acute Respiratory Distress Syndrome

  • Acute respiratory distress syndrome (ARDS) is a life-threatening clinical syndrome whose potential to become one of the most grievous challenges of the healthcare system evidenced by the COVID-19 pandemic. Considering the lack of target-specific treatment for ARDS, it is absolutely exigent to have an effective therapeutic modality to reduce hospitalization and mortality rate as well as to improve quality of life and outcomes for ARDS patients.

  • Findings suggest that inhalant CBC may be an effective alternative therapeutic target in the treatment of ARDS. In addition, Increased expression of TRPs cation channels after CBC treatment proposes a novel role for TRPs (TRPA1 and TRPV2) as new potential mechanism to interpret the beneficial effects of CBC as well as other cannabinoids in the treatment of ARDS as well as other inflammatory diseases. Importantly, delivering CBC through an inhaler device is a translational model supporting the feasibility of trial with human subjects, authorizing further research.

The Growing Potential of CBD in Dentistry

  • With the anti-inflammatory products in CBD, more oral health companies are manufacturing products that contain CBD. New uses of cannabinoids within the dental field require further investigation, but the literature does show positive results, with the addition of cannabinoids to air polishing powder, toothpaste, and oral rinses increasing product effectiveness when it comes to improving dental health.

Upcoming Events & Webinars

Got Innovation? If you see an interesting new brand, trend or other innovative idea, please feel free to share directly to [email protected]

Got Innovation?

Got Innovation? If you see an interesting new brand, trend or other innovative idea, please feel free to share directly with us! All ideas are welcome!

Learn More

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