CBD Opportunity

What convenience retailers need to know about this emerging hemp-based product category.

October 17, 2022

This article is brought to you by cbdMD Inc., a NACS member.

ALEXANDRIA, Va.—NACS Magazine recently spoke with leaders at cbdMD Inc., CBD Industries LLC, about CBD products and the unique opportunities cbdMD offers convenience retailers.

Q: Consumer interest in CBD products is growing, and retailers in multiple channels are competing in the same space. Why should convenience retailers jump in if they haven’t already?

CBD is still new enough to the retail space that there are plenty of opportunities for new players. Offering these products at the convenience level gives stores the opportunity to capitalize on the growing interest in CBD products. On top of that, many CBD products are offered at affordable prices, and smaller packaging sizes mean retailers can maximize profits within a small display space. Lastly, convenience store customers are typically looking for products to meet immediate needs, and cbdMD has a growing line of products that fit within categories focused on things like relaxation, sleep and energy. It’s a win-win.

Q: What do retailers and consumers need to know about hemp-based CBD products?

It’s quite simple: Cannabidiol, or CBD, doesn’t get consumers “high,” and neither do most of the other minor cannabinoids like CBG and CBC. THC is the active compound of cannabis that causes the “high” associated with cannabis products. There are a wide range of products that offer varying concentrations of minor cannabinoids which have different effects. CBD is one of over a hundred cannabinoids which naturally occur in hemp. Cannabinoids have been consumed in various forms throughout human history. Only recently have consumer products made from hemp-extracted cannabinoids gained a level of recognition. CBD and the majority of the other minor cannabinoids are not like THC; they do not impair consumers when ingested at any level.

Broad Spectrum products are hemp-based cannabinoid products that are considered “THC-free.” They may include CBD and other cannabinoids (like CBG or CBC), as well as at least one terpene found in hemp, but they have undetectable levels of THC.

Full Spectrum products are hemp-based cannabinoid products that include CBD, other minor cannabinoids and varying low levels of THC, as well as terpenes found in the hemp plant.

High Potency Full Spectrum products (sometimes referred to as Delta 9 THC products) have higher concentration levels of THC than standard Full Spectrum products.

Microdose Full Spectrum products (also sometimes referred to as Delta 9 THC products) are specifically designed to have a very low fixed amount of THC per serving. They can be combined with other Broad or Full Spectrum products to achieve the desired result.

There is one constant with all cbdMD products: They are all derived from hemp. The difference between marijuana and hemp (otherwise known as “industrial hemp”) is that hemp plants are specific strains of cannabis which are grown and cultivated in a way that results in less than 0.3% THC by dry weight.

Q: There are lots of companies selling CBD products. What sets cbdMD apart?

At cbdMD, we believe cannabinoids like CBD can truly be a difference maker in the lives of everyday people. The power of the hemp plant is just beginning to be understood, and cbdMD is at the forefront of both product and research innovation.

We were the first pure-play CBD brand to go public on the NYSE: American (YCBD). We were one of the first brands to expand into functional products that go beyond CBD to meet the needs of customers from all walks of life. We were the first, and are currently the only, company to achieve the NSF for Sport Certification for ANY CBD products, which means that our Certified for Sport product line ensures a customer will not fail a drug test and is the only product on the market suitable for first responders, drug-tested athletes, or anyone who has a job where they are subject to drug testing for THC.

cbdMD puts science first. To support the safe consumption of our products, we compiled an extensive dossier of safety data that has been reviewed thoroughly by toxicologists and various regulatory and certification authorities. cbdMD has completed clinical trials in dogs and humans. Data gathered from those studies will be used to communicate and educate our customers about the benefits of our products.

We’ve always been focused on ensuring all of our products are manufactured in clean, safe, GMP-certified facilities. We have taken that a step further by seeking out the most well-respected third-party certification bodies in the United States and secured NSF GMP for Dietary Supplements. We test products in-house and provide accredited third-party lab results to our customers to ensure what is on the label is in the bottle. Whether with a QR code or direct on site, we’ve made it easy for consumers to understand exactly what’s in their wellness products. Customers have access to the full suite of testing that we complete for each product to ensure that they meet label claims. It should be noted that many brands fail to do this and provide “sample” COAs or COAs which are dated and not specific to a particular batch of product.

Q: What unique opportunities does cbdMD offer convenience retailers?

One of the latest consumer trends we see is a significant increased demand for High Potency Delta 9 THC products, which do have higher concentrations of THC. Through research and development, we’ve crafted products that unlock a whole new world of wellness options for consumers.

While we’ve experienced expansive growth in the Delta 9 sector, the same is true for our gummy products. We’re constantly finding new ways to produce products that take advantage of a whole list of natural and proprietary ingredients, all designed to work together to achieve a functional goal.

We’re always evolving and perfecting the way we do things, regardless of what part of the business that includes. As retail and convenience opportunities emerge, we’ll be the one constantly innovating to meet customer needs and open new sales opportunities for store owners all while offering the best products at the best prices. That’s the cbdMD difference.

Q: For athletes, in particular, how do cbdMD products fit into their fitness regimes?

When we first started cbdMD, athletes and recovery were at the core of what we did. If we could get these products into the hands of some of the hardest working people on the planet, then surely the everyday person could get interested in those same products. We started with people who were open to the idea of CBD and have continued to grow our portfolio of big-name athletes to further solidify the message that hemp really can help anyone. From UFC World Champion Daniel Cormier to INDYCAR driver and 7x NASCAR Champion Jimmie Johnson, and many Olympic and extreme sports champions along the way, we’ve established our brand as one that is synonymous with sports of all sizes.

MLB recently announced it would welcome partnering with CBD brands which hold the NSF for Sport certification. And as the first and only CBD company offering products that are certified NSF for Sport, this will only draw further interest to our brand and our products from a vast array of different demographics ... in the end, benefiting everything cbdMD is planning with retailer relationships.

We at cbdMD are committed to helping our customers own their day. Entirely new groups of consumers are being exposed to the wealth of CBD products, and now’s the time to capitalize on giving the people what they want. Our customers do not want to have to worry about testing positive on a drug test for taking our products. The NSF Certified for Sport logo means that they will not face those negative repercussions. In this industry, being able to trust your brand matters.

This product has not been reviewed or approved for sale by the U.S. FDA, and it is illegal to sell this product under the laws of some states. You should check the applicable state and local rules before engaging in the retail sale of this product.