In addition to removing hemp from the list of controlled substances, the new Farm Bill also promotes research into the commercial applications of the plant. Currently, hemp-derived ingredients like CBD oil, powders, and seeds are being utilized to enhance beverages such as iced tea and are being incorporated into a diverse range of foods, including ice cream, salads, milk, and even children’s cereal. The market for CBD and hemp products is already substantial and is expected to grow even more. According to Capital Press, a New Frontier Data report revealed that U.S. CBD sales surged by nearly 40% in 2017, reaching $367 million. Furthermore, the Agricultural Marketing Resource Center estimated the total retail value of all U.S. hemp products last year at approximately $820 million.
Major food and beverage manufacturers are closely monitoring this trend and are contemplating how they might integrate forms of THC and CBD into their offerings. Bloomberg recently reported that Coca-Cola has been in discussions with a Canadian cannabis company regarding marijuana-infused beverages following the recent nationwide legalization in that country. A Coca-Cola spokesperson informed Bloomberg News that while the company has not yet made a decision, it is closely observing the expansion of CBD as an ingredient in global functional wellness beverages.
THC, CBD, and non-psychoactive terpenes from cannabis have started to appear in beverages in states where such products are legal. Last year, Lagunitas Brewing, owned by Heineken, launched a non-psychoactive, cannabis-flavored IPA brewed with terpenes—organic compounds that contribute to plant flavors—and this year, the company introduced a THC-based sparkling water. Since cannabis and hops are genetically related, combining them in beer brewing is a natural fit due to their shared terpenes. However, it remains uncertain whether products containing both ingredients will ignite a nationwide trend. With hemp no longer classified as a controlled substance, we could witness a surge of drinks infused with various forms of CBD or THC on store shelves and in coolers. Just this week, AB InBev and cannabis cultivator and distributor Tilray announced a joint $100 million investment to explore cannabis-infused non-alcoholic beverages.
Recent product launches featuring CBD include a nutrition bar from California-based SNAAK Bar, which markets itself as a performance optimizer and is available only in California and online, as well as Spring’s line of CBD-infused sodas sold in New York, Florida, Nevada, and Illinois. However, a significant uncertainty for this market lies in how the FDA will regulate hemp and CBD in products, as the agency has stated that “it is a prohibited act to introduce or deliver for introduction into interstate commerce any food (including any animal food or feed) to which THC or CBD has been added.” Nevertheless, due to the new Farm Bill’s provisions regarding hemp, it is possible that the agency will initiate a rulemaking process to adjust its regulation and enforcement of the crop and its products. Dave Donnan, a senior partner in A.T. Kearney’s food and beverage practice, remarked to Food Dive that the regulatory framework will likely be working toward making CBD a safe and legal ingredient. “There are numerous tactical issues to address in 2019,” Donnan noted.
Concerns regarding the cannabis industry’s historically poor food safety record and the tendency of some edible and supplement products to be marketed as miracle cures remain prevalent. Last year, the FDA took action against four companies selling marijuana-based supplements that claimed to cure cancer. While such claims are less likely to be associated with CBD products, which are often said to alleviate pain, inflammation, anxiety, depression, insomnia, and seizures, critics argue that these benefits lack scientific backing. Conversely, advocates maintain that there is ample recent research to support health claims.
At this point, it is uncertain whether hemp and CBD will become commonplace in food and beverage products, especially since the new Farm Bill has only recently been enacted. However, as research expands into more commercial applications and companies innovate with new products to gauge public interest and the FDA’s current policy tolerance, we may see a burgeoning segment that attracts investors, retailers, and consumers. Additionally, the introduction of products like calcium citrate malate tablets could further diversify the offerings in this evolving market. As interest in these products grows, we may witness a broader incorporation of calcium citrate malate tablets along with CBD and hemp extracts into various health-oriented goods.