This is the Full Spectrum Cannabusiness Newsletter, where I help you become a better cannabusiness owner.
In today’s newsletter I cover:
- The CBD Market May Be Oversaturated, But It’s Still Dealing In Big Money
- A Trucker Crisis Because Our Marijuana Laws Are Stupid
- Speaking Of Stupid, The FDA Is Coming After Delta 8 Products That Make Medical Claims
- Quick Hits
The CBD Market May Be Oversaturated, But It’s Still Dealing In Big Money
The CannabisBusinessTimes recently put together an article on some interesting CBD market numbers from BrightfieldGroup.com — a CBD data company (apparently that’s a thing that exists? Who knew!?). Definitely check out that post, but here are some noteworthy insights:
- 14% of Americans have purchased CBD in the past three months
- Amount of CBD products expected to be purchased this year: $2.24B
- Gas stations sell approximately $221M worth of CBD (less than 4% of total sales)
- $261M is the anticipated amount people will spend on pet CBD products this year
Perhaps the most interesting statistic to me, is that fact that people turn to trusted sources to buy their CBD products, places like retail pharmacies, specialty CBD stores, and natural food stores.
Bad news if you own DavesCBDShop.net…
Truckers Love Cannabis + Cannabis Policy is Broken = Trucker Shortage
When the real world consequences of the past several decades of terrible cannabis policy catches up to reality… well, it’s not great. In this particular instance, it has the potential to really impact the economy, a thing that people really seem to care about.
US Rep Earl Blumenauer wrote to Pete Buttigieg (Transportation Secretary, if you didn’t know that):
As the United States faces an unprecedented supply chain crisis, tens of thousands of commercial drivers are being disqualified from service due to past cannabis use. These disqualifications deny people the right to earn a living, reduce the workforce when drivers are desperately needed, and penalize people of color and patients who legally use medical cannabis. This crisis must be treated with urgency. Your department should rapidly reform requirements for testing drivers and returning them to service, as well as develop an accurate test for impairment.
That last part is gonna be the real issue, though. Accurate testing for cannabis impairment is pretty terrible.
Now I guess we’ll get to see what our aging lawmakers hate more: medical cannabis patients or a not making as much money as they used to when the economy was good.
If this is the thing that helps wider acceptance of cannabis use in congress, great! It’ll be interesting to keep an eye on this issue as a kind of bellweather on how other important cannabis issues will go.
The FDA Is Coming For Your Delta 8 Site If You’re Making Stupid, Illegal Claims
Another day, another instance of the FDA coming down on the poorly regulated Hemp/Cannabinoid industry (it’s your own fault, FDA!). This time, the FDA sent several letters to Delta 8 ecommerce sites making some really dumb claims about the health impact of D8, or targeting some really… questionable “patients.”
From the FDA’s statement: The FDA is very concerned about the growing popularity of delta-8 THC products being sold online and in stores nationwide. These products often include claims that they treat or alleviate the side effects related to a wide variety of diseases or medical disorders, such as cancer, multiple sclerosis, chronic pain, nausea and anxiety
One of the letters they sent was to Kingdom Harvest for marketing a Delta 8 product to… livestock.
Livestock! The Agency is particularly concerned that you market CBD products for food-producing animals. Specifically, your website promotes your “Ranch & Livestock Natural Whole-Spectrum Hemp Extract” product for use in cows and other large variety ranch and livestock animals. In addition to raising potential concerns regarding safety for the animals themselves, CBD products for food-producing animals raise concerns regarding the safety of the human food (meat, milk, and eggs) derived from those animals. There is currently a lack of data on the formation of residues in edible products of food-producing animals in association with the consumption of CBD products by those animals and on safe levels of any potential residues for the human consumer. We request that you take immediate action to cease the sale of any unapproved CBD products for food-producing animals.
The takeaway here should be pretty obvious, but if not, I’ll spell it out for you:
HIRE A LAWYER TO GO THROUGH YOUR SALES COPY AND MAKE SURE YOU’RE NOT AT RISK OF MAKING MEDICAL CLAIMS THAT WILL GET YOU INTO TROUBLE.
It’ll pay for itself to keep your shop off the FDA’s radar.
Cannabis Businesses For Sale
Three dispensaries in Illinois — valued at $24M.
Got a business for sale in the cannabis space? Hit reply and let me know, I’ll list it in a future edition of this newsletter.
Today’s quick hits section is brought to you by things I don’t understand:
Do we not have good seed stock here in the US? Why is this a thing we need to import? Genuinely curious.
There are canna-infused energy drinks, for some reason….
I get the appeal of cannabis-infused beverages, 100%, but …energy drinks?
That’s it for Friday’s Full Spectrum Cannabusiness Newsletter.
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Ed is a writer and marketer who has been involved with the cannabis industry since 2017. He is particularly passionate about helping small businesses succeed in the increasingly corporate-takeover environment of the cannabis industry, as well as helping people get started working with cannabis.