California’s Hemp-Derived CBD Legislation for Foods, Drinks and Beauty Products Delayed to 2020
The rises of CBD is expected to be a significant growth driver for the U.S. market. Meanwhile California’s Hemp-Derived CBD Legislation for Foods, Drinks and Beauty Products Delayed to 2020
How it can influence on California cannabis market? What perspectives lose California trough this delay?
Our experts tried to answer is there any way out from its vicious circle.
The current issue in California in relation to the production and procurement of Hemp, has been nothing short of Armageddon. The reality is California needs a lifeline and Medical Cannabis and Hemp could have put them on the map long before now, and ensured they became the standard for other states to follow. The California leadership is out of touch with the opportunity from technology to integrative innovations. The system ideology has gone rogue from staying present pacing realtime demands leading to the greatest missed opportunity to go "green" as is so often promoted.
A true paradox, once touted as the progressive innovative state to the reality today where California is begging Medical Doctors after graduation to reside in exchange the state would pay their entire student loan debt. How desperate do we need to become before we recognize the mass exodus of residents, academics, businesses from agriculture to technology no longer willing to wait out a dysfunctional process. This is the reality and yet the response is to delay opportunities of which could grant the state what it so desperately needs to sustain, but most importantly to scale in its economics with hemp and other innovative integrations.
As someone who advises in various industries from healthcare, academics, technology, business and government, innovation that can advance any state should be welcomed, embraced and explored. With all talk and no action any business owner knows it cannot survive with continued delays in execution. This hinders economic growth, and continues to push the job markets down further in the state on a myriad of levels. In fact, many today believe this effort to push decisions on the matter until 2020 will further discourage investors, and entrepreneurs intentionally delaying the hemp beverage and food products to market.
This can only mean one thing, there is influence and self interest prompting this reversal stance on hemp cbd in foods, and beverages. Some might recall California Governor Gavin Newsom in 2016 campaigned on the talking points of hemp legalization and ensuring growers and others the economic opportunity. We have yet to see any real progress and those operators and business owners are letting it be known in the most devastating way, by heading out of California to other states who welcome the economic opportunities. So I think the biggest loser is California watching dollars disappear as they continue to see industries not just hemp or Cannabis exiting the state, no longer willing to waste investors time and money on moratoriums that continue to stall and stagnate compliant commerce with merging innovations now found in so many other less progressive states.
One would assume the hemp opportunity would be the low hanging fruit to integrate, when today anyone over the age of twenty-one in California can access Cannabis in a dispensary that has psycho-active compounds fused in various modalities from beverages to edibles, yet Hemp CBD is a stall in food and beverages. Again, if California is going to get this right, they need to react quickly before the marketshare dries up when they need it most to sustain and support all the programs it promotes.
The impact of the hemp cbd market in California on the current industry of Cannabis will likely accelerate demand, driving more consumers into medical or adult use of Cannabis if they cannot access hemp cbd products. Consumers will seek to find Cannabis cbd products that can effectively replace hemp cbd finding possibly it more effective and not turn back to hemp. I think the Hemp industry in California will only ensure a Cannabis revolution with more consumers stepping into use in replacement of products they cannot acquire for therapeutic use if the government continues to impede the process.
I truly hope California gets this right, and if they can begin, they too can reap from the harvest of opportunity with hemp cbd allowing consumers safe access to a regulated product already accepted in over thirty-three states and nine countries around the world in some form. I know many hemp farmers around the world have shared they have eyes on California determining their next step based on the states ability to respond and react as promised. After working on a congressional democratic campaign in California myself as a Director of Communications, I can tell you politics will find itself scrambling to regain relevance if they continue to push back on what the people have asked for and been promised
This is a great question and I’m happy to answer it, because it exposes the challenges currently facing the CBD marketplace and how our company, CanIDeal helps solve this issue for the CBD market.
Yes, indeed the CBD market is experiencing greater than expected growth and due to market fragmentation, is now in a fiercely competitive cycle to establish brand identity and defensible market share. The delay on California based CBD products imposed by legislature unfortunately hampers the brands from competing on a national level, thus missing the cycle of brand and market share development.
What we do at CanIDeal is designed to specifically help CBD companies as well as all producers / brands in the cannabis markets establish brand, boost sales and create a defensible market share. Our nationwide online B2B marketplace allows buyers from across the nation to choose the best products at the best prices. In this way, CanIDeal enables brands to establish themselves at a national level.
The CBD market is huge. Some say it will surpass the legal cannabis market. While there are some delays to opening up the market in sectors such as food, drinks and beauty products, I think this may actually be helpful to CBD companies as it provides additional time to work on branding and packaging. Remember, new packaging can take up to six months (or more) to complete.
As in any new market, there will be a plethora of companies competing for consumers and shelf space. That’s why it will be vital that companies invest in top quality branding and packaging solutions in order to successfully compete and rise to the top of the market.
The sad truth is, many of today’s CBD companies won’t be around in a few years. The market simply can’t support so many brands. However, this provides opportunities for companies that invest in proper branding and packaging. These savvy businesses will create long-lasting brand loyalty that is vital to success
California's ban and prejudice against Hemp-Derived CBD products have been going on for some time now. Even when SB 94 (the fully written version of prop 64 that went into effect) was put into law, they put a caveat on Hemp CBD products by not allowing those products to be sold in Dispensaries. Then they passed a ban on the sale of CBD products in grocery stores, among other places. To date I, nor anyone that I've ever discussed this with, has any idea what the true thought process was behind this. It really doesn't make any logical sense, but that's California for you.
I feel that California is making a play on strictly the Cannabis Sativa (Marijuana) market for now and are just not willing to venture out into the Hemp market yet; which to be fair might be a good option for them since they're doing a "stellar" job with Cannabis Regulation and Enforcement haha.
Will this affect the state, possibly. There are two ways to think about it.
It can definitely affect the state sales and tax revenue by restricting OTC Hemp CBD Products and it is definitely a detriment to the Fiber Hemp commodity that would be a big opportunity for farmers that are making pennies for other products (or not making money at all due to the trade wars), but;
Another thought is the question of why they would use Hemp CBD products if they can legally grow Cannabis that has a much higher ratio of CBD with a few percent of THC? The biggest argument to that would be the minor cannabinoid expression, but no many people are truly looking at that right now so that's a mute point.
This of course is the reason why Mitch McConnell doesn't want Cannabis legalization in Kentucky. It would ruin a new hemp business that he took so many strides to make happen in the farm bill.