24 August 2019
Most U.S states have not legalized the use of recreational cannabis. Nonetheless, the less strict laws on CBD and hemp sales have prompted an array of companies to grab the opportunity with hopes of readily grabbing the cannabis market share in case it becomes legalized. CBD selling companies are stamping their brands to the consumers while getting retail relationship and shelf space. In case recreational cannabis becomes legalized, it will be easier for those companies to gain access to the market as compared to companies starting from scratch.
From the product’s perspective, companies are seeking to have effective and consistent CBD brand. This will, in turn, make consumers purchase safe products from the said companies when THC is legalized. Rick Batenburg, who is the Clear Cannabis Inc chairman, said that it is important to have quality, especially if you have built that connection and trust with consumers.
If you are to look at making use of CBD products as a stepping stone to a cannabis business, you will notice the sense in terms of cash flow. When cannabis becomes legalized by the state further mentioning the future sales data, companies will have to rent space, find distribution, and hire employees. Licensing delays are prone to happen; nonetheless, if a company is selling hemp-based CBD products as it waits for the business of THC to start, this will create an income flow to start from.
Batenburg is hopeful that consumers will choose addictive free products. He further explained that the Clear CBD and THC disposable vape cartridges are the company’s most popular products. It is either CBD and THC for the consumers, nothing else, he further said. It is an important aspect because when consumers have a bad experience with a specific product, they will avoid anything related to the plant, Batenburg said.
The 2018 farm bill legalized hemp federally; however, the rules governing the legalization are still not formalized, which in turn has created hurdles for CBD companies building a hemp-based business. The New York Senator Chuck Schumer sent a directive to the federal financial regulators to shed more light on the situation. A case in point credit banking services could be offered to hemp businesses. The National Credit Union Administration for its part in August confirmed that hemp companies could benefit from their credit unions services.
In order to create a more transparent operation, the Clear which is one of the hemp companies are categorizing their businesses to those that deal with the plant and those that deal with items such as vaping supplies. This makes accountability easy due to the difference in legality of the two products. Batenburg further explained that separating the non-planting and plant-touching assets will limit risks for companies.
The display of CBD products at the different stores like Walmart is good for the products as consumers are no longer stigmatizing cannabis. According to Batenburg, large consumer goods companies can now enter into the CBD market after National hemp legalization. This is simply by adding “now with CBD” to existing products.
He further stated that the big connection such brands have with their consumers could play a bigger role in infusing CBD to the said consumers. CBD is very famous as compared to the other cannabinoids contained in hemp. The plant has very many uses, including making building materials, car parts, and fiber.