CBD Industry News Roundup
The CBD industry is booming in the US. Sometimes, it can be difficult to keep track of everything going on. But don’t worry, we’ve got your back! Check out our reports and analysis of what’s going around the CBD industry. This edition, we’re covering new CBD food laws in California, a California biotech company opening a hemp brand valued at $10 million, profiling a new CBD-infused drink company founded by veterans, and the negative growth of Canada’s hemp industry over the last year. We did the research, check the sources, and compiled the information for you. You can see our reports below.
California Hemp Food Bill Put on Hold
California recently introduced a bill to legalize CBD made from hemp products in food. However, the California senate put the bill on hold last week. While senators can support the bill again in the future, that probably isn’t going to happen until 2020.
The bill was making big waves around the California CBD and the US CBD industry as a whole. The way the bill was phrased would make it legal for California companies to sell cosmetics, food, and drinks using CBD extracts as an ingredient and pave the way for new CBD-based products. In addition, it would likely set a precedent for a similar law throughout the US.
The bill has seen support from both sides of the aisle. However, the California Department of Health was less supportive. As a result, the bill has been put in “Suspense,” which is coincidentally the same way the California CBD industry is watching events unfold.
California Biotech Firm Branches into Hemp
Davis, California-based biotechnology company Arcadia Biosciences (NASDAQ: RKDA) is expanding into a new market: hemp. The company, which grows and markets wheat, announced on September 9 that it’s investing $10 million to open its own hemp subsidiary. Hemp plants are the only federally legal source of CBD in the US.
Arcadia is going to use the money to grow hemp and conduct research into hemp seed genetics in Imperial County, CA according to a press release. Arcadia’s subsidiary, Arcadia Specialty Genomics, will begin operating in California on October 1 after being forced to relocate from Hawaii.
The company will focus initially on breeding new strains of hemp. In a press release, the company’s founder stated that industrial hemp seeds severely lacked the quality and variety that the traditional cannabis seed industry enjoys.
Veterans Team Up to Launch CBD Company
A former pilot and soldier are leveraging CBD’s popularity up to launch their own new CBD company in New York. Mike Wagner and Moses Oh are each served in the military for eight years before attending Cornell in civilian life. Now, the two are bringing their new product, a CBD-infused sparkling water called “Normal” to market.
They began where any good company does: with R&D. They checked out Colorado-based companies that were using water-soluble hemp to make products and applied similar technology to their own product. The result is Normal, a 20-calorie sparkling water drink infused with give milligrams of water-soluble CBD per can. It comes in two flavors, Strawberry and Lemon.
The main problem they faced was a simple one, they realized: taste. Since cannabis has so many powerful and distinct flavors, it will affect whatever you put it in. As a result, they had to use more flavoring than a traditional seltzer water. To pull it off, they used cold-pressed juice, which gives each can of Normal an extra punch of flavor.
Canada’s Hemp Industry Decreases Growth
A new report out of Canada suggests that the country’s hemp industry shrank over the last year thanks to slow-moving regulations on the CBD industry in that country. It’s a surprising change for Canada’s hemp industry, which has traditionally been decades ahead of its American counterpart.
A study released by the United States Department of Agriculture (USDA) showed that the total size of the hemp industry in Canada shrank in 2018. The report cites slow-moving regulations in Canada as the cause for the decrease. Canada exports more than 70 percent of its hempseed products to the US. It sends the rest to the US and Canada.