The latest trend in the market is growing influence of online retailing for both business-to-consumer (B2C) and business-to-business (B2B) operations. The increasing popularity of e-commerce businesses worldwide has granted vendors with an opportunity to enhance their profit margins and revenues. E-commerce reported for nearly 15% of the global retail sales in 2017.
CBD-rich hempseed is legal now, but it’s also rare, giving plant breeders a huge new market as barriers to national hempseed distribution are removed. The 2018 Farm Bill guarantees interstate commerce for all hemp products, removing requirements that viable hempseeds require approval from the U.S. Drug Enforcement Administration. But the law leaves in place requirements […]
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With the federal government's full legalization of hemp, a previously marginalized industry is opening for free interstate commerce. What does that mean for entrepreneurs looking to get into the space, as well as those who could benefit from a wider availability of hemp-derived products? Here's a brief look at hemp's history in the U.S., as well as what its newly legalized status means for small businesses.
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Hemp Business Journal has also reviewed sales of clothing, auto parts, building materials and various other products, and estimates the total retail value of hemp products sold in the U.S. in 2017 to be at least $820 million, including hemp foods (17%); personal care products (22%); textiles (13%); supplements (5%); hemp derived cannabidiol or CBD products (23%), consumer textiles (13%); industrial applications (18%); and other products such as paper and building materials accounted for the remaining 2% of the market.
Regarding health claims, the contract states: “Under no circumstances may [a distributor] prescribe any Product as suitable for a particular ailment. No claims may be made as to therapeutic or curative properties of any Product offered by the Company.” As for income claims, the contract says distributors are “prohibited from making false, misleading, or unrepresentative claims regarding earning potential.” It adds that, when an income claim reflects actual earnings, the claim must be accompanied by “the Company’s current Annual Average Income Disclosure, posted on the Company’s website.” But as of the date of publication, it was not posted there.
Not only did prohibition mean hemp companies were legally unable to engage in interstate commerce, it also meant access to critical business services was often restricted. This includes banking, for example, because many banks harbored concerns about doing business with a company that remained federally illegal. Not only would that require more compliance work, risk management and due diligence on the part of the bank, it also would put banks at risk for money laundering charges and loss of FDIC status if the federal government enforced the laws on the books.
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CBD product labels sometimes say that they were produced with “CO2 extraction.” That can mean that the CBD and other ingredients were removed from the plant using high-pressure carbon dioxide gas, not chemical solvents. Depending on the type of CO2 extraction used, the technique might be able to extract not just CBD but other cannabinoids (see number 5) in the plant, Boyar says. However, that approach is not necessarily better, because it’s unclear whether those other compounds provide additional health benefits. And it may not be safer, either, because some forms of CO2 extraction still use solvents, Boyar says.
The heat is very much on CBD oil sellers these days as the FDA continues to crack down on companies selling “questionable” (to put it nicely) hemp-based products. In fact, since 2015 – when the FDA first issued warning letters to multiple CBD sellers – the industry has been forced to clean up its act, at least in terms of manufacturing operations and brand transparency.