“First & Free” CBD Products Soft Launch in US
Canopy Growth’s New Line of CBD Products Derived from Hemp – LPC
Canopy Growth quietly launched its First & Free hemp-derived CBD products in 31 US states where CBD is legal. It marks the cannabis company’s first steps into the US market. First & Free sells CBD oil drops and softgels, and says creams are “Coming Soon”.
Canopy’s First & Free in itself is not a surprise. After the US legalized hemp, Canopy announced it would be investing up to $150 million in a hemp operation in southern New York state. That’s near its US partner, Constellation Brands. It has also been working with Martha Stewart to develop a line of hemp-derived CBD products for pets.
However, it’s the soft launch that caught the interest of many cannabis market analysts. Why not scream “First & Free” from the rooftops?
The answer is simple: the reaction of the US Food and Drug Administration (FDA). Last month, the FDA stated it cannot vouch for CBD’s safety.
“The FDA has seen only limited data about CBD safety,” the FDA states on its website. “These data point to real risks that need to be considered before taking CBD for any reason.”
First & Free Hits Market Despite FDA’s Stance – LPC
Canopy, for its part, added the obligatory disclaimer to the First & Free website. “These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.”
Canopy communications vice-president Jordan Sinclair said the First & Free website follows the most stringent of state laws. This is to ensure customers can feel they are getting their CBD products from a “trusted source”.
To underline the safety aspect, Canopy states it has filed 40 provisional patents, conducted 11 therapeutic trials and has more than 900 patients.
Jefferies LLC analyst Owen Bennett said the CBD market would reach US$3.5 billion by 2022. “There will likely be a route to market for CBD products,” he said last month, unrelated to First & Free. He pointed out that the FDA approved CBD-based drugs in the past. “In our view though, the safety risks as well as the spike in consumer interest will likely see heavy regulation, with companies having to support product launches with detailed reports likely including clinical studies.”
As big as the CBD market will be, the cannabis market will be even bigger when the US legalizes cannabis, possibly in 2020. First & Free might be a CBD company today, but Canopy’s sights are on the US cannabis market. It is setting up a vertical retail supply chain for Canopy, first and foremost.
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