Author: Nicole Brown
May 17th – 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
Sephora Deepens Its Commitment To CBD Beauty With New Endcaps Focused On The Ingredient
- The beauty specialty chain is deepening its commitment to the hemp-derived cannabinoid with new CBD Skincare end caps at 180 locations nationwide. The endcaps house 17 face, bath and body care items priced from $15 to $125 from Sephora’s three anchor CBD beauty brands: Lord Jones, Prima and Saint Jane. Prima, a certified B Corp, is the only brand in the trio that’s part of the retailer’s Clean Plus Program. With the arrival of the endcaps, the brand has doubled its in-store stock keeping count at Sephora by rolling out two of its online bestsellers, Bath Gem and Beyond Body Oil, at brick-and-mortar locations.
- The three brands had in-store presences prior to the initiative. Lord Jones had dedicated end caps in around 20 stores, and Prima was in about 280 stores on Sephora’s Next Big Thing wall. However, the initiative marks the first time Sephora is explicitly advertising CBD merchandise in its stores.
“An Anti-Gummy Ingestible”: Prima Debuts CBD Chewable Chill Out
- Prima’s newest product launch, Chill Out, is a nutrient-dense Vegan CBD Chew combining 20 mg broad-spectrum organic hemp CBD per serving plus vitamin C, niacin, citrus bioflavonoids, pantothenic acid, pyridoxine, riboflavin, thiamin, PABA, chromium, biotin and 100 milligrams of magnesium. Its patent-pending, plant-powered delivery system addresses major deficiencies with traditional gummies.
- Co-developed with a neuropharmacologist and nutritional biochemist, Chill Out is designed to actively address underlying nutrient deficiencies that contribute to stress, burnout, and fatigue. The brand claims Chill Out outperforms the traditional “gummy” and “CBD gummy” in ingredient quality, delivery system, and overall efficacy, reducing stress, soothing tension, and supporting healthy adrenal function.
- Chill Out’s launch campaign, “No Gummy Business,” aims to educate consumers about the negative health effects of traditional CBD gummies and gummy vitamins by questioning the typical ingredients in these products.
Valens Company Teams With Signifi Solutions To Deploy Retail CBD Kiosks
- The Valens Company Inc., a manufacturer of cannabis products, has, through its wholly-owned subsidiary Green Roads Inc., teamed with Signifi Solutions Inc., a provider of self-serve kiosks, vending machines and automated solutions based in Mississauga, Ontario, Canada, to place cloud managed Green Roads kiosks.
- The companies will install the kiosks in mall locations in New York, Florida, Arizona, Texas, and Colorado among others. The agreement also includes the potential for an additional 60 mall locations in 2022.
- The first kiosk is expected to go live in June 2022 and is expected to include a full assortment of Green Roads products aimed at helping consumers with common health and wellness challenges such as stress, sleep, muscle and joint pain, relaxation and focus.
Hemp Bombs Expands Product Line with Launch of Delta-9 THC Gummies
- Hemp Bombs®, the manufacturer and distributor of award-winning CBD and Delta-8 THC products, announces the launch of its newest offering, Delta-9 THC Gummies, now available at select retail locations nationwide and online at www.hempbombsplus.com.
- “The same CBD gummy consumers that drove retail sales from 2016-2020 are more educated on the other cannabinoids like Delta-8 and Delta-9,” said Vice President of Sales, Vince Gillen. “The scanned sales data and our market research show this is where the hemp-cannabinoid category is headed in retail. Our distribution and retail partners are evolving their product sets to meet consumer demand, which we feel is only going to go up.”
- Federally legal as a part of the 2018 Farm Bill, all Hemp Bombs Delta-9 Gummies contain less than 0.3% Delta-9 THC by dry weight. Hemp Bombs Delta-9 Gummies are available in 12-count packages with an MSRP of $19.99 in the following flavors: Blue Raspberry Dream, Exotic Lime, Goji Berry Explosion, Mixed Berry Mayhem and a Variety Mixed Pack. In addition, 50-count bottles with an MSRP of $49.99 will be coming soon.
- Simply Better Brands Corp. is pleased to announce it has entered into a non-binding letter of intent (“LOI”) signed April 25, 2021, to acquire CFH Limited (“CFH”), a seed-to-shelf CBD manufacturer. CFH is a vertically integrated with hemp fields, research & development, extraction and manufacturing with both a branded and white-label portfolio.
- “In Q1 2022, the PureKana brand grew over 300% compared to a year ago. To support this growth, it is critical we enhance our research and manufacturing capability. As we looked to expand, we were so impressed with CFH’s team and capability. Their commitment to quality, proprietary research, and mission to improve the quality of people’s lives is synonymous with our journey. We are excited to collaborate on next-generation wellness together”, says Kathy Casey, CEO of SBBC.
- Under the terms of the non-binding LOI, the Company will acquire all of the issued and outstanding common shares of CFH for USD $14,320,000 payable in SBBC common shares (“SBBC Shares”) valued at a price per share equal to the 10-trading day VWAP of SBBC Shares immediately prior to the closing date.
22nd Century Group (Nasdaq: XXII) Acquires GVB Biopharma, a Leading Hemp/Cannabis Company
- 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company dedicated to improving human health with reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technology, today announced the acquisition of privately held GVB Biopharma.
- GVB’s strengths complement 22nd Century’s existing upstream and downstream value chains, which includes expertise in cannabinoid receptor science with CannaMetrix, plant research and proprietary genetics through its KeyGene partnership, breeding expertise with Extracts, and cultivation capabilities at Needle Rock Farms.
- GVB expects 2022 revenue of approximately $48 million, a 58% increase year-over-year, gross margin in excess of 44% and positive cash flow. Upon closing, the transaction is expected to more than double 22nd Century’s revenue, be immediately accretive to adjusted EBITDA, and generate positive cash flow from the acquired assets in the near term. The aggregate consideration for the transaction consisted of (i) the assumption of approximately $4.5 million of debt, (ii) GVB’s closing costs, and (iii) the issuance to GVB of 32,900,000 unregistered shares of common stock of the Company.
CV Sciences Sales Decline, But Cost Cutting Keeps Losses In Check
- For the first quarter of fiscal year 2022, the San Diego-based CBD product manufacturer reported revenue of $4.4M, which represents an 8% decline from the $4.8M it reported in the same year previously.
- The company’s gross margin declined too, from 32.4% in the fourth quarter of 2021to 26% in the first quarter of 2022. But cost-cutting helped the company raise its cash balance to $2.4M at the end of the quarter, compared to the $1.4M it had on hand at the end of its fiscal 2021.
- The company had embarked on an aggressive cost-cutting course that saw combined R&D and SGA expenses decline from $5.4M in the first quarter of 2021 to $2.6M in the first quarter of 2022. As a direct result, CV Sciences was able to trim its operating loss to $1.5M in the quarter, down from a loss of $3.1M in the same period a year previously.
Trend Pieces and Editorial
From Bud to Bloom, L.A. Women Lead A CBD And Mushroom Revolution
- “More and more people are starting to learn that medicinal mushrooms aren’t just psychedelic ones” explains Moyal, “Many have beneficial properties ranging from boosting energy to immunity to even protecting the brain.”
- High-powered former Goop alums Ashley Lewis and Meredith Schroeder understand the need for more natural solutions. They left their high-powered jobs to start Fleur Marché right before the COVID outbreak in 2019. The duo found a unique way to enhance energy, sex and sleep through CBD. Today, the brand is in dozens of stores including Nordstroms. They see a future where CBD will be more of a critical ingredient to new innovative products rather than a stand-alone.
- “We just believe that sustained consumer belief in CBD and general category credibility will hinge on an approach that treats CBD more as a value-add ingredient rather than a silver bullet,” explains Lewis. “We’re increasingly seeing CBD paired with other ingredients.”
- The sober cousins in Mother Earth’s most famous plant and fungi families are sprouting their way into a spotlight once solely reserved for their psychedelic siblings magic mushrooms and THC. And, unlike fads such as chia seeds and celery juice, these products are proving they have staying power thanks to a little push from some savvy businesswomen.
Gen Z Can’t Seem to Embrace This Beloved Millennial Wellness Trend
- There was a period of time, around 2015 or 2016-ish, where you simply couldn’t get millennials to stop talking about CBD. For the uninitiated, cannabidiol, or CBD, is a non-psychoactive cannabinoid, meaning that it doesn’t have any intoxicating or euphoric effects. Instead, CBD enthusiasts—many of them in the 26 to 41 demographic—report feeling slightly more relaxed and at ease.
- Millennials stockpiled everything from soothing CBD lotions, yummy gummies, and everything in-between. If it had CBD in it, millennials were game. (This particular millennial even used CBD oil to calm her blinding migraines for a spell). Fast forward seven years later and Gen Z is shaking the table by lowkey renouncing the ingredient. That’s right. The generation that brought back Crocs, and resin jewelry seems to think CBD super cheugy. *Cue millennial gasp*
- According to a study conducted by The Unwinder—an educational platform providing evidence-based articles on wellness products and practices—only 27 percent of Gen Z showed interest in CBD. The results were a stark contrast to a similar study the company conducted last year, which showed CBD as being popular across all demographics. It turns out, in 2022, zoomers prefer ashwagandha (35 percent), an adaptogenic herb that’s popular in ayurvedic medicine, and elderberry (33 percent), which is known to promote a healthy balance of gut bacteria.
Why the Time is Now to Make Sexual Wellness a Priority
- Consumers have spoken: They want to find luxury sexual wellness products in the same channels where they purchase their favorite skincare, fragrances, and go-to lipsticks.
- Prestige beauty department stores are emerging as the key locations where shoppers expect to find their pleasure products. That’s welcome news because the sexual wellness category is posting much higher growth rates compared to those in cosmetics and skincare.
- Sexual wellness is growing at an 8 percent Compounded Annual Growth Rate (CAGR) en route to $45 billion by 2025 in the U.S. alone, according to the Global Sexual Wellness Market Analysis and Forecast. Sexual wellness is also a global phenomenon with the CAGR pegged at 12.4 percent, with global sales expected to top $125 billion in the next three years.
- Shoppers are on the prowl for these products, and retailers including Neiman Marcus, Bergdorf Goodman, Nordstrom, Saks Fifth Avenue, Shen Beauty, Cos Bar, Sephora, Lemon Laine, and Bluemercury, are responding by building and expanding sexual wellness departments.
- These trailblazers realize the link between wellness and beauty—and that sexual wellness is a subsegment of overall wellness.
Regulatory
Another Sign Of Mainstream Acceptance As Amazon Gets On Board With CBD In US
- On the back of news confirming the long-anticipated start of the CBD product trial on eBay comes news that Amazon has changed policy and will start to carry a selection of topical CBD products for customers to order online for delivery where US state laws allow.
- “Over the last few years customer interest in topical CBD products has increased and state regulation to sell and purchase these products has expanded. Making these products available for Amazon Fresh and Whole Foods Market grocery delivery helps to expand our selection and gives customers even more choices on products they can shop and have delivered conveniently to their home.”
- Amazon did not confirm when the change took place, but it is a further demonstration of CBD penetration into wider retail areas – a move that has to be made for the sector to grow from a niche product appealing to a veteran core of consumers to a commodity-type health and wellness item akin to vitamin C or other standard supplements.
- Amazon did not provide a full list of the companies and products available through its Amazon Fresh and Whole Foods Market delivery – which differs from its overall online marketplace or its Prime service, though certain items can be purchased through multiple Amazon channels.
- The decision shows, however, that conventional retail is growing increasingly comfortable with the presence of CBD.
UK FSA Adds More CBD Products To List, Some ‘Removed,’ As Regulatory Chaos Continues
- The UK’s Food Standards Agency has added almost 2,500 products to its recently published cannabidiol list, and “removed” 34, meaning that they must be withdrawn from retail shelves immediately.
- Confusion remains, however, with the regulator’s shadowy “active application” category conflicting with its advice to enforcers to start clamping down not just on products marked “removed” but also products not on the list.
Category & Research Trends
Open Book Extracts Announces Completion Of Toxicology Studies On Minor Cannabinoids
- Open Book Extracts (Roxboro, NC) announced the results of the first phase of toxicology and safety studies of their cannabinoid ingredients: cannabigerol (CBG), cannabinol (CBN), and cannabichromene (CBC). The firm contracted the scientific and regulatory consulting firm AIBMR Life Sciences Inc. to conduct the battery of toxicology studies investigating the safety of consumption of CBG, CBN, and CBC required to support a Generally Recognized as Safe (GRAS) independent conclusion or New Dietary Ingredient (NDI) application.
- The report concluded that the test articles were non-mutagenic, non-clastogenic, and non-genotoxic. According to Open Book Extracts, this toxicological assessment is the first known published data of its kind since the publication of Rosenkrantz et al.’s 1980 data on CBD, Cannabichromene and hashish oil. This current battery of GLP/OECD compliant studies contributes significantly to the advancement of the science of hemp-derived CBD.
- “Until today, there have been no comprehensive toxicological safety assessments completed on minor cannabinoids, including CBG, CBN, and CBC,” said Chelsea Pipkin, vice president of quality assurance at Open Book Extracts, in a press release. “The completion and publication of these safety studies on these ingredients in a peer-reviewed academic journal specializing in toxicology is a monumental step forward in putting competent and reliable science behind a product. The public should applaud this effort as well as the time and expense it required.”
- InMed Pharmaceuticals Inc., a leader in the research, development, manufacturing and commercialization of rare cannabinoids, is pleased to announce it has launched B2B sales of the rare cannabinoid cannabidivarin (“CBDV”) to wholesalers, suppliers and end-product manufacturers in the health and wellness sector through its US subsidiary, BayMedica LLC.
- “Ensuring a reliable, large volume source of highly pure, bioidentical CBDV is an important step forward in the health and wellness sector. CBDV has been researched for its therapeutic potential in several disease areas such as autism spectrum disorder,” said Shane Johnson, MD, SVP and General Manager of BayMedica. “Whether you are a researcher or product developer at a multinational consumer package goods (‘CPG’) company, the ability to access highly pure and consistent active ingredients, free from contaminants typically found in plant-sourced cannabinoids such as pesticides, heavy metals, or potentially even THC, is a fundamental requirement.”
Upcoming Events & Webinars
- MJ Unpacked (May 18 – 20, NYC)
- Cannabis Europa (June 28 – 29, London)
Got Innovation? If you see an interesting new brand, trend or other innovative idea, please feel free to share directly to nicole@openbookextracts, or you can share in the #innovation Slack channel. All ideas are welcome!
Author: Nicole Brown
May 17th – 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
Sephora Deepens Its Commitment To CBD Beauty With New Endcaps Focused On The Ingredient
- The beauty specialty chain is deepening its commitment to the hemp-derived cannabinoid with new CBD Skincare end caps at 180 locations nationwide. The endcaps house 17 face, bath and body care items priced from $15 to $125 from Sephora’s three anchor CBD beauty brands: Lord Jones, Prima and Saint Jane. Prima, a certified B Corp, is the only brand in the trio that’s part of the retailer’s Clean Plus Program. With the arrival of the endcaps, the brand has doubled its in-store stock keeping count at Sephora by rolling out two of its online bestsellers, Bath Gem and Beyond Body Oil, at brick-and-mortar locations.
- The three brands had in-store presences prior to the initiative. Lord Jones had dedicated end caps in around 20 stores, and Prima was in about 280 stores on Sephora’s Next Big Thing wall. However, the initiative marks the first time Sephora is explicitly advertising CBD merchandise in its stores.
“An Anti-Gummy Ingestible”: Prima Debuts CBD Chewable Chill Out
- Prima’s newest product launch, Chill Out, is a nutrient-dense Vegan CBD Chew combining 20 mg broad-spectrum organic hemp CBD per serving plus vitamin C, niacin, citrus bioflavonoids, pantothenic acid, pyridoxine, riboflavin, thiamin, PABA, chromium, biotin and 100 milligrams of magnesium. Its patent-pending, plant-powered delivery system addresses major deficiencies with traditional gummies.
- Co-developed with a neuropharmacologist and nutritional biochemist, Chill Out is designed to actively address underlying nutrient deficiencies that contribute to stress, burnout, and fatigue. The brand claims Chill Out outperforms the traditional “gummy” and “CBD gummy” in ingredient quality, delivery system, and overall efficacy, reducing stress, soothing tension, and supporting healthy adrenal function.
- Chill Out’s launch campaign, “No Gummy Business,” aims to educate consumers about the negative health effects of traditional CBD gummies and gummy vitamins by questioning the typical ingredients in these products.
Valens Company Teams With Signifi Solutions To Deploy Retail CBD Kiosks
- The Valens Company Inc., a manufacturer of cannabis products, has, through its wholly-owned subsidiary Green Roads Inc., teamed with Signifi Solutions Inc., a provider of self-serve kiosks, vending machines and automated solutions based in Mississauga, Ontario, Canada, to place cloud managed Green Roads kiosks.
- The companies will install the kiosks in mall locations in New York, Florida, Arizona, Texas, and Colorado among others. The agreement also includes the potential for an additional 60 mall locations in 2022.
- The first kiosk is expected to go live in June 2022 and is expected to include a full assortment of Green Roads products aimed at helping consumers with common health and wellness challenges such as stress, sleep, muscle and joint pain, relaxation and focus.
Hemp Bombs Expands Product Line with Launch of Delta-9 THC Gummies
- Hemp Bombs®, the manufacturer and distributor of award-winning CBD and Delta-8 THC products, announces the launch of its newest offering, Delta-9 THC Gummies, now available at select retail locations nationwide and online at www.hempbombsplus.com.
- “The same CBD gummy consumers that drove retail sales from 2016-2020 are more educated on the other cannabinoids like Delta-8 and Delta-9,” said Vice President of Sales, Vince Gillen. “The scanned sales data and our market research show this is where the hemp-cannabinoid category is headed in retail. Our distribution and retail partners are evolving their product sets to meet consumer demand, which we feel is only going to go up.”
- Federally legal as a part of the 2018 Farm Bill, all Hemp Bombs Delta-9 Gummies contain less than 0.3% Delta-9 THC by dry weight. Hemp Bombs Delta-9 Gummies are available in 12-count packages with an MSRP of $19.99 in the following flavors: Blue Raspberry Dream, Exotic Lime, Goji Berry Explosion, Mixed Berry Mayhem and a Variety Mixed Pack. In addition, 50-count bottles with an MSRP of $49.99 will be coming soon.
- Simply Better Brands Corp. is pleased to announce it has entered into a non-binding letter of intent (“LOI”) signed April 25, 2021, to acquire CFH Limited (“CFH”), a seed-to-shelf CBD manufacturer. CFH is a vertically integrated with hemp fields, research & development, extraction and manufacturing with both a branded and white-label portfolio.
- “In Q1 2022, the PureKana brand grew over 300% compared to a year ago. To support this growth, it is critical we enhance our research and manufacturing capability. As we looked to expand, we were so impressed with CFH’s team and capability. Their commitment to quality, proprietary research, and mission to improve the quality of people’s lives is synonymous with our journey. We are excited to collaborate on next-generation wellness together”, says Kathy Casey, CEO of SBBC.
- Under the terms of the non-binding LOI, the Company will acquire all of the issued and outstanding common shares of CFH for USD $14,320,000 payable in SBBC common shares (“SBBC Shares”) valued at a price per share equal to the 10-trading day VWAP of SBBC Shares immediately prior to the closing date.
22nd Century Group (Nasdaq: XXII) Acquires GVB Biopharma, a Leading Hemp/Cannabis Company
- 22nd Century Group, Inc. (Nasdaq: XXII), a leading agricultural biotechnology company dedicated to improving human health with reduced nicotine tobacco, hemp/cannabis, and hops advanced plant technology, today announced the acquisition of privately held GVB Biopharma.
- GVB’s strengths complement 22nd Century’s existing upstream and downstream value chains, which includes expertise in cannabinoid receptor science with CannaMetrix, plant research and proprietary genetics through its KeyGene partnership, breeding expertise with Extracts, and cultivation capabilities at Needle Rock Farms.
- GVB expects 2022 revenue of approximately $48 million, a 58% increase year-over-year, gross margin in excess of 44% and positive cash flow. Upon closing, the transaction is expected to more than double 22nd Century’s revenue, be immediately accretive to adjusted EBITDA, and generate positive cash flow from the acquired assets in the near term. The aggregate consideration for the transaction consisted of (i) the assumption of approximately $4.5 million of debt, (ii) GVB’s closing costs, and (iii) the issuance to GVB of 32,900,000 unregistered shares of common stock of the Company.
CV Sciences Sales Decline, But Cost Cutting Keeps Losses In Check
- For the first quarter of fiscal year 2022, the San Diego-based CBD product manufacturer reported revenue of $4.4M, which represents an 8% decline from the $4.8M it reported in the same year previously.
- The company’s gross margin declined too, from 32.4% in the fourth quarter of 2021to 26% in the first quarter of 2022. But cost-cutting helped the company raise its cash balance to $2.4M at the end of the quarter, compared to the $1.4M it had on hand at the end of its fiscal 2021.
- The company had embarked on an aggressive cost-cutting course that saw combined R&D and SGA expenses decline from $5.4M in the first quarter of 2021 to $2.6M in the first quarter of 2022. As a direct result, CV Sciences was able to trim its operating loss to $1.5M in the quarter, down from a loss of $3.1M in the same period a year previously.
Trend Pieces and Editorial
From Bud to Bloom, L.A. Women Lead A CBD And Mushroom Revolution
- “More and more people are starting to learn that medicinal mushrooms aren’t just psychedelic ones” explains Moyal, “Many have beneficial properties ranging from boosting energy to immunity to even protecting the brain.”
- High-powered former Goop alums Ashley Lewis and Meredith Schroeder understand the need for more natural solutions. They left their high-powered jobs to start Fleur Marché right before the COVID outbreak in 2019. The duo found a unique way to enhance energy, sex and sleep through CBD. Today, the brand is in dozens of stores including Nordstroms. They see a future where CBD will be more of a critical ingredient to new innovative products rather than a stand-alone.
- “We just believe that sustained consumer belief in CBD and general category credibility will hinge on an approach that treats CBD more as a value-add ingredient rather than a silver bullet,” explains Lewis. “We’re increasingly seeing CBD paired with other ingredients.”
- The sober cousins in Mother Earth’s most famous plant and fungi families are sprouting their way into a spotlight once solely reserved for their psychedelic siblings magic mushrooms and THC. And, unlike fads such as chia seeds and celery juice, these products are proving they have staying power thanks to a little push from some savvy businesswomen.
Gen Z Can’t Seem to Embrace This Beloved Millennial Wellness Trend
- There was a period of time, around 2015 or 2016-ish, where you simply couldn’t get millennials to stop talking about CBD. For the uninitiated, cannabidiol, or CBD, is a non-psychoactive cannabinoid, meaning that it doesn’t have any intoxicating or euphoric effects. Instead, CBD enthusiasts—many of them in the 26 to 41 demographic—report feeling slightly more relaxed and at ease.
- Millennials stockpiled everything from soothing CBD lotions, yummy gummies, and everything in-between. If it had CBD in it, millennials were game. (This particular millennial even used CBD oil to calm her blinding migraines for a spell). Fast forward seven years later and Gen Z is shaking the table by lowkey renouncing the ingredient. That’s right. The generation that brought back Crocs, and resin jewelry seems to think CBD super cheugy. *Cue millennial gasp*
- According to a study conducted by The Unwinder—an educational platform providing evidence-based articles on wellness products and practices—only 27 percent of Gen Z showed interest in CBD. The results were a stark contrast to a similar study the company conducted last year, which showed CBD as being popular across all demographics. It turns out, in 2022, zoomers prefer ashwagandha (35 percent), an adaptogenic herb that’s popular in ayurvedic medicine, and elderberry (33 percent), which is known to promote a healthy balance of gut bacteria.
Why the Time is Now to Make Sexual Wellness a Priority
- Consumers have spoken: They want to find luxury sexual wellness products in the same channels where they purchase their favorite skincare, fragrances, and go-to lipsticks.
- Prestige beauty department stores are emerging as the key locations where shoppers expect to find their pleasure products. That’s welcome news because the sexual wellness category is posting much higher growth rates compared to those in cosmetics and skincare.
- Sexual wellness is growing at an 8 percent Compounded Annual Growth Rate (CAGR) en route to $45 billion by 2025 in the U.S. alone, according to the Global Sexual Wellness Market Analysis and Forecast. Sexual wellness is also a global phenomenon with the CAGR pegged at 12.4 percent, with global sales expected to top $125 billion in the next three years.
- Shoppers are on the prowl for these products, and retailers including Neiman Marcus, Bergdorf Goodman, Nordstrom, Saks Fifth Avenue, Shen Beauty, Cos Bar, Sephora, Lemon Laine, and Bluemercury, are responding by building and expanding sexual wellness departments.
- These trailblazers realize the link between wellness and beauty—and that sexual wellness is a subsegment of overall wellness.
Regulatory
Another Sign Of Mainstream Acceptance As Amazon Gets On Board With CBD In US
- On the back of news confirming the long-anticipated start of the CBD product trial on eBay comes news that Amazon has changed policy and will start to carry a selection of topical CBD products for customers to order online for delivery where US state laws allow.
- “Over the last few years customer interest in topical CBD products has increased and state regulation to sell and purchase these products has expanded. Making these products available for Amazon Fresh and Whole Foods Market grocery delivery helps to expand our selection and gives customers even more choices on products they can shop and have delivered conveniently to their home.”
- Amazon did not confirm when the change took place, but it is a further demonstration of CBD penetration into wider retail areas – a move that has to be made for the sector to grow from a niche product appealing to a veteran core of consumers to a commodity-type health and wellness item akin to vitamin C or other standard supplements.
- Amazon did not provide a full list of the companies and products available through its Amazon Fresh and Whole Foods Market delivery – which differs from its overall online marketplace or its Prime service, though certain items can be purchased through multiple Amazon channels.
- The decision shows, however, that conventional retail is growing increasingly comfortable with the presence of CBD.
UK FSA Adds More CBD Products To List, Some ‘Removed,’ As Regulatory Chaos Continues
- The UK’s Food Standards Agency has added almost 2,500 products to its recently published cannabidiol list, and “removed” 34, meaning that they must be withdrawn from retail shelves immediately.
- Confusion remains, however, with the regulator’s shadowy “active application” category conflicting with its advice to enforcers to start clamping down not just on products marked “removed” but also products not on the list.
Category & Research Trends
Open Book Extracts Announces Completion Of Toxicology Studies On Minor Cannabinoids
- Open Book Extracts (Roxboro, NC) announced the results of the first phase of toxicology and safety studies of their cannabinoid ingredients: cannabigerol (CBG), cannabinol (CBN), and cannabichromene (CBC). The firm contracted the scientific and regulatory consulting firm AIBMR Life Sciences Inc. to conduct the battery of toxicology studies investigating the safety of consumption of CBG, CBN, and CBC required to support a Generally Recognized as Safe (GRAS) independent conclusion or New Dietary Ingredient (NDI) application.
- The report concluded that the test articles were non-mutagenic, non-clastogenic, and non-genotoxic. According to Open Book Extracts, this toxicological assessment is the first known published data of its kind since the publication of Rosenkrantz et al.’s 1980 data on CBD, Cannabichromene and hashish oil. This current battery of GLP/OECD compliant studies contributes significantly to the advancement of the science of hemp-derived CBD.
- “Until today, there have been no comprehensive toxicological safety assessments completed on minor cannabinoids, including CBG, CBN, and CBC,” said Chelsea Pipkin, vice president of quality assurance at Open Book Extracts, in a press release. “The completion and publication of these safety studies on these ingredients in a peer-reviewed academic journal specializing in toxicology is a monumental step forward in putting competent and reliable science behind a product. The public should applaud this effort as well as the time and expense it required.”
- InMed Pharmaceuticals Inc., a leader in the research, development, manufacturing and commercialization of rare cannabinoids, is pleased to announce it has launched B2B sales of the rare cannabinoid cannabidivarin (“CBDV”) to wholesalers, suppliers and end-product manufacturers in the health and wellness sector through its US subsidiary, BayMedica LLC.
- “Ensuring a reliable, large volume source of highly pure, bioidentical CBDV is an important step forward in the health and wellness sector. CBDV has been researched for its therapeutic potential in several disease areas such as autism spectrum disorder,” said Shane Johnson, MD, SVP and General Manager of BayMedica. “Whether you are a researcher or product developer at a multinational consumer package goods (‘CPG’) company, the ability to access highly pure and consistent active ingredients, free from contaminants typically found in plant-sourced cannabinoids such as pesticides, heavy metals, or potentially even THC, is a fundamental requirement.”
Upcoming Events & Webinars
- MJ Unpacked (May 18 – 20, NYC)
- Cannabis Europa (June 28 – 29, London)
Got Innovation? If you see an interesting new brand, trend or other innovative idea, please feel free to share directly to nicole@openbookextracts, or you can share in the #innovation Slack channel. All ideas are welcome!
