You are here
How the FDA Plans to Deal With Hemp Now That It's Legal
FN Media Group Presents USA News Group News Commentary
LOS ANGELES, March 5, 2019 /PRNewswire/ -- The Food and Drug Administration (FDA) is considering what it terms "potential regulatory pathways" for the interstate commerce of hemp and cannabis compounds in foods and beverages. This follows the renewal of the Farm Bill signed by President Donald Trump on Dec. 20, which legalized the commercial production of hemp.
The legalization of hemp production is yet another product of the wave of change that has all manner of cannabis companies preparing for the massive increase in demand for the plants including leading providers like Aphria (TSX: APHA) (NYSE: APHA), Canopy Growth Inc. (TSX: WEED) (NYSE: CGC), and MedMen (CSE: MMEN) (OTC: MMNFF).
With this news in hand, the CBD products sector is expected to grow significantly. One stand out in this area is The Yield Growth Corp., which holds multiple interests. The Yield Growth Corp. (CSE:BOSS) (OTC: BOSQF) is a major new participant and brand incubator for the growing cannabis beauty and wellbeing sectors, with a significant portfolio of innovative products for legal jurisdictions and those growth areas with legalization pending.
In this new market environment, the FDA will pose as a qualifier for many of the new products. They expect to be a harbinger of the law.
Surprise: the FDA will start by holding meetings
For starters, agency head Gottlieb says the agency plans to hold a public meeting "in the near future" to hear from stakeholders about their experiences and challenges with the products, including any safety-related concerns.
"We'll use this meeting to gather additional input relevant to the lawful pathways by which products containing cannabis or cannabis-derived compounds can be marketed, and how we can make these legal pathways more predictable and efficient," Gottlieb said a public statement.
"We'll also solicit input relevant to our regulatory strategy related to existing products, while we continue to evaluate and take action against products that are being unlawfully marketed and create risks for consumers."
The CBD and hemp Industries are not waiting
The official word on food and drugs is "Cannabis and cannabis-derived products claiming in their marketing and promotional materials that they're intended for use in the diagnosis, cure, mitigation, treatment, or prevention of diseases (such as cancer, Alzheimer's disease, psychiatric disorders and diabetes) are considered new drugs or new animal drugs and must go through the FDA drug approval process for human or animal use before they are marketed in the U.S.," according to the FDA.
In the meantime, food and beverage makers aren't standing by when it comes to introducing the CBD and hemp products. Besides being used to infuse beverages such as water, coffee, tea, beer and wine, CBD is being added to all kinds of other foods, including ice cream, salads, milk and even children's cereal and pet treats. Other recent innovations containing CBD include things like Spring's line of CBD-infused sodas sold in New York, Florida, Nevada and Illinois.
Of course, the large food manufacturers seem to be acting with caution before rushing to add CBD or hemp to their products. But as more players enter the industry and new products start to gain traction, that is likely to change rapidly.
Wellness market is a prime opportunity
The wellness market is even bigger than the cannabis market is going to be any time soon. At present, this means that the wellness industry is worth about $4.2 trillion worldwide.
An innovator that has already anticipated these changes is The Yield Growth Corp., whose unique approach aims to sell its base products nearly anywhere in the world, and then capitalize on markets that legalize recreational use of THC or CBD. In this way, they are opening new markets with the legalization as a pathway to larger market share.
With its Urban Juve brand, The Yield Growth is targeting an audience that knows what it wants. Their products are thoughtfully branded and marketed "honestly". These are products anyone can obtain and use now (prior to CBD/THC legalization) and, as they are consumable, these are products anyone who uses them may choose to move "up" to a more expensive, THC or CBD "enhanced" version as these ingredients are approved and the product lines expand.
The Yield Growth Corp. (BOSS – BOSQF) has multiple major brands to provide a broad portfolio in the developing CBD space. Urban Juve currently boasts nearly 50 different products launching in 2019. All of these products may offer CBD infused or THC infused versions in the future.
CBD and hemp finding favor
The market for CBD and hemp-derived products is already significant, and manufacturers and marketers are gearing up business on a national scale. A New Frontier Data report found that U.S. CBD sales jumped almost 40% in 2017, hitting $367 million. The total retail value of all U.S. hemp products last year — including food — was estimated at roughly $820 million. That's according to the Agricultural Marketing Resource Center.
These sales gains are expected to continue their upward trend. By 2020, hemp-derived CBD is projected to be a billion-dollar market, according to a report from the Brightfield Group that researches the hemp and CBD trends. This helps to explain why the FDA is striving to make its regulatory oversight clear to all stakeholders "as soon as possible".
As an important aside, it's worth noting that the new congressional session getting underway, there could be a move to legalize CBD in all food and drink products nationwide. That would only take place once a revised oversight and safety framework is in place.
Companies with interest in the legal hemp and CBD business, often from Canada where cannabis is completely legal, will likely see the greatest early growth and market gains from new legislation and FDA support, including:
Aphria (TSX:APHA) (NYSE:APHA) bills itself as one of Canada's lowest cost producers, that produces, supplies and sells medical cannabis. Located in the greenhouse capital of Canada, Leamington, Ontario, Aphria provides pharma-grade medical cannabis, and quality patient care.
Canopy Growth Inc. (TSX: WEED) (NYSE: CGC) is the world's largest diversified cannabis company. Canopy boasts a wide offering of distinct brands and curated cannabis varieties in dried, oil and capsule forms.
MedMen Enterprises Inc. (OTC: MMNFF) (CSE: MMEN) operates as a cannabis company in the United States. It owns and operates 18 licensed cannabis facilities in cultivation, manufacturing, and retail located in California, Nevada, and New York.
For a more information about The Yield Growth Corp. and legal hemp businesses see the article at: http://usanewsgroup.com/2019/01/15/the-sleeping-giant-for-2019-just-woke-up-and-its-a-game-changer-for-investors-looking-to-diversify-into-a-multi-billion-dollar-sector/
Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact Information:
FN Media Group, LLC
Media Contact e-mail:
U.S. Phone: +1(954)345-0611