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CBD Industry sees "Gold Rush" among uncertain regulations: NPR




A display shows some of the CBD products for sale at Family Video.

Liam Niemeyer / Ohio Valley ReSource


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Liam Niemeyer / Ohio Valley ReSource

A display shows some of the CBD products for sale at Family Video.

Liam Niemeyer / Ohio Valley ReSource

Shea Castleberry works in a time capsule of different types. He walks through the hallways of the Family Video Store he manages in Murray, Ky., A small town surrounded by rolling farmland about two hours north of Nashville.

Next to movies and popcorn, there is a new addition to their store that surprises some of their regulars.

"Many people are like" a video store selling CBD? "But it's really related to our values. We are here for the community," says Castleberry.

Cannabidiol, also known as CBD, is a compound that is becoming increasingly popular due to the alleged health users, ranging from better Sleep, Reduced Anxiety and Pain Relief Nonetheless, clinical trials are lacking for most claims.

It is derived from a type of cannabis called hemp, and the last Farm Bill, signed by President Trump in December, legalized the cultivation of the federal-level crop.

Wholesalers throughout the country, including Walgreens and CVS, have invested in the CBD industry since this point, and Castleberry said his family video store began wearing April CBD oil, lotions, gums, lip balm and water, but he stressed Family Video Not just selling CBD just to get extra profits.

While video rental giant Blockbuster went bankrupt nearly ten years ago due to competition from online streaming companies like Netflix, Hundreds of Family Video stores remain across the country, still renting out DVD copies of movies and TV shows stretching the walls of each store.

"I love digital stuff, but it's still this kind of quality – it's like vinyl," Castleberry said, and cracked a blank DVD case. "I want to be honest with people. I'll tell those who haven't got good reviews. Or" I didn't like it, it wasn't for me. ""

Castleberry claims that the company's CEO was inspired to sell CBD in Family Video stores after the drug helped with CEO's armband pain and that the company will now help others with the drug while making a profit.

"Forty years in the same industry, in a quote-on-quote & dying business & # 39 ;, says something about those who own this company. They are not afraid to try things. If they do not train, They do not work out, and we move on to the next thing. "

Castleberry said the CBD sales made an extra $ 1,000 in sales last month. Nevertheless, this sale represents only a small part of the total sales.

New Frontier Data, a Denver-based analysis company studying the cannabis industry, estimates that CBD's product sales worth $ 390 million in 2018. It could triple to more than $ 1.2 billion by 2022.

Newly-traded companies that extract and process the hemp and CBDs, also target millions of dollars in this industry, But uncertainty in federal regulation, especially if the CBD is to be in food, creates doubts about how far this industry can go.

The CBD

About an hour further north of Murray is the even smaller town of Kevil, Ky., Where millions of dollars are invested inside an unremarkable warehouse.

"Actually on Thanksgiving Day, this was an empty shell. The construction didn't begin until after Thanksgiving, so we've come a long way quickly," says Aeronource-H co-founder Nathaniel Pape. "It's pretty exciting to be in the hot market just right now, you know? "[19659008] The warehouse that makes up Aerosource-H is now full of bags filled with sharp hemp, Cannabis is then moved into a bleach-white laboratory, where $ 3 million of whirring machines and freezers make the crop Purified CBD. Pape thinks it looks like flour.

"I think you will eventually see CBD everywhere. From your creams, to your drinks, to your food, to anything. And that's good, says Pape.

As Family Video, Pape says that Aerosource-H primarily wants to help people with CBD while generating revenue. And they do a lot of it: a kilo of purified CBD sells for around $ 6,000. "We are actually one of the little people. There are many larger entities coming online. You know, our focus is on being there The best we can be, which contains the highest quality, the highest consistency, basically finding our niche in a gold jump, Pape says. "But it's also a little scary. Because you know in gold stops, many of the people lose. "

Part of that fear comes from the uncertainty about how the Food and Drug Administration will regulate certain aspects of the CBD, which potentially restrict the market for the connection. [19659008] Regulations or Foods?

The FDA currently prohibits CBD In foods, according to the Federal Food, Drug and Cosmetic Act, it is illegal to add FDA-regulated substances to food.

The agency comments on Friday in a public hearing on how to regulate the CBD. Steps to Determine if CBD is to be Regulated as Food Supplements, or a Prescription Drug – or Both 19659008] Kentucky Agriculture Commissioner Ryan Quarles said he wants CBD to be considered a dietary supplement because of the increase it can provide for hemp farmers.

"We recognize that the FDA has a wide range of possibilities with what they can do with these products. But we ask them not to regulate this growing industry to death, says Quarles.

And a lot of money is at stake. New Frontier Data Chief Knowledge Officer John Kagia believes that over $ 1 billion in sales predicted by his company is largely dependent on whether the FDA is soothing in regulation.

"While in the United States, federal policy can be slow to move around marijuana, meaning the clear type of interest in promoting a national CBD policy that there is an opportunity here for the United States to be a participant in this new global market, "Kagia said." The CBD market has clearly grown dramatically over the past 12 months. But we think this is still just the tip of a very large iceberg. "

Following public consultation, the FDA plans to use public comments to inform a federal workgroup looking "to explore potential pathways for dietary supplements and / or conventional foods containing CBD to be legally marketed."



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