CannabisNewsWire Editorial Coverage: Analysts at Brightfield Group see CBD (cannabidiol) gobbling up a sizeable chunk of a projected $100 billion nutraceuticals 2022 U.S. market.

• $22 billion-plus CBD market could eclipse broader cannabis market
• Growing consensus about health benefits backed by clinical work, personal endorsements
• CBD found in everything from beverages and dog treats to pharmaceuticals and wellness products

The opening of the CBD floodgates represents a huge opportunity for plant-based wellness and health-product developers such as Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) (WLDFF Profile) and Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB), a lifestyle-oriented developer of cannabis and CBD consumer products. Similarly, some of the fastest-growing producers in the industry today, such as Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) and HEXO Corp. (NYSE: HEXO) (TSX: HEXO) all stand to benefit as the rising tide of the CBD market continues to see tremendous growth for a number of reasons.

To view an infographic of this editorial, click here.

An Established Wellness Ingredient Goes Mainstream

The recent passage of the Hemp Farming Act in the 2018 U.S. farm bill made hemp an ordinary agricultural commodity, swinging open the door for hemp-derived CBD. The industry is seeing everyone from A-list celebs at the Oscars to noted medical professionals such as American neurosurgeon Dr. Sanjay Gupta extolling the health benefits of CBD.

Already incorporated into to a wide variety of functional foods and beverages, CBD has also started to show up in coffee and cocktails, with CBD drinks being added to menus at bars and coffee shops across America. Many users swear by the efficacy of CBD to combat ailments such as various anxieties, sleeplessness or physical pain. Little wonder that CBD is going mainstream, and product developers have been racing to put the stuff into every kind of consumer product imaginable, from health and beauty items for the skin to tasty treats for the family pet. The accumulating evidence for CBD’s health benefits also owes a great deal to watershed achievements such as Epidiolex, a CBD-derived anti-seizure medication that has been through numerous clinical trials, becoming FDA-approved in severe forms of childhood epilepsy.

There appears to be an emerging consensus among consumers that CBD is strong enough to treat something like epilepsy but also safe enough to be used for daily aches and pains or address the myriad anxieties that plague the modern mind. This awareness, combined with the rapid proliferation of CBD consumer products ranging from vape pens to functional foods, has led to a kind of grassroots market revolution. Any stigma remaining due to laymen confusing CBD with THC is rapidly eroding, particularly with the likes of homemaking legend Martha Stewart now providing her knowledge of consumer products to CBD developers. And household names such as Kim Kardashian, Olivia Wilde and Jennifer Aniston are also going on record as having enjoyed the health benefits associated with their personal consumption of CBD products.

Growing Consensus about Healing Power of Plants

Speaking of A-list celebrities and CBD products, it was the Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) CBD+ Healing Stick that found its way into the gift bags of the stars during Oscar weekend 2019. Packing a walloping 500mg of highly concentrated, full-spectrum CBD, Wildflower’s cooling and soothing stick is easy to apply for targeted pain relief and skin care, providing relief through a unique CBD blend that includes therapeutic ingredients such as arnica, wintergreen and other essential oils.

A reputable brand whose stated mission is to connect people to the healing power of plants via the company’s increasingly sophisticated line of CBD vaporizers, capsules, tinctures, soaps and topicals, Vancouver-based Wildflower Wellness packs its extracts with essential amino acids and beneficial terpenes, the organic compounds that give plants flavor and scent.

The company’s products are made in the United States at Wildflower’s GMP facilities and are third-party lab tested; they are also backed by a 100 percent satisfaction guarantee. Such well-formulated, convenient and discrete products as Wildflower’s disposable ACHES CBD+ vaporizer are increasingly enjoying widespread acceptance. This is in part due to education of the consumers by cannabis and wellness influencers.

Wildflower Wellness has even partnered with Bridges General to take that company’s reimagined convenience store concept to the next level. The partnership fuses together the popularity of the Bridges General design-centric retail space that delivers convenience for the on-the-go urban professional with an engaging opportunity to experience and learn about the benefits of CBD. The partnership is already serving some of the most innovative minds in tech at its Lower Manhattan store, as well its Madison Avenue Bridges General store. The company has also engaged Retail Worx to establish shop-in-shop retail availability at more than 20 locations in the heart of New York City’s booming cannabis market.

Industry Seeing Retail Renaissance in Consumer Products

Wildflower also has a surprisingly impressive retail reach for a company of its size, with the Wildflower Wellness brand already enjoying distribution in key states, such as Washington at more than 200 retailers. The company’s California-based King Extracts brand is focused on cannabis technology and delivery systems.

King Extracts’ flagship product, the King Recharge, is a discreet but powerful little pocket vaporizer that comes in its own sleek charging and storage case, which has room for two 500mg cartridges and a backup battery. King Recharge offers fractionally distilled CO2 extractions in exceptionally clean and sophisticated blends that utilize proprietary terpenes in order to deliver a full, robust flavor profile. Sativa, Indica and Hybrid, as well as two limited-edition Sativa flavors (watermelon and bubble gum), are currently available. Additionally, Wildflower’s growing national distribution arm includes over 80 other wellness and healthcare practitioners, bringing the company’s total to some 300-plus stores nationwide.

The company has even branched out into physical retail itself, harnessing the power of increasing brand recognition, a firm footing in the California market and tightly knit relationships with local hospital oncology departments and community programs. The company has launched its own dispensary in Los Angeles and provides on-demand, legal and licensed cannabis delivery services to adults in the L.A. area. The second quarter of 2019 saw the 10th consecutive quarter of increased revenue for Wildflower, with $1.4 million in sales underscoring a burgeoning direct-to-consumer online channel that witnessed 300 percent growth last year alone.

Many analysts are saying that the CBD rush is just getting started. One recent estimate indicates that the CBD market alone could eclipse the entire remainder of the cannabis market combined. Wildflower can apparently read the handwriting on the wall and intends to apply the $1.882 million in proceeds from the company’s recent, oversold private placement to good use.

A Rising Tide Lifts All Boats

Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is also enjoying the upside as CBD goes mainstream, with increasing traction for the company’s Seventh Sense CBD-infused body care collection. Similar upside is being seen across the company’s other retail arms, including curated product mix Meri+Jayne, CAMP lifestyle product kiosks, women’s wellness focused Green Lily and Nevada-based The +Source dispensaries. Its Indiana shop marks the start of a massive retail push that will see Green Growth Brands leverage newly gained access to some 108 prime retail locations at thriving malls throughout the United States. The push is backed by an $85 million private placement from late last year, which will also bolster the company’s XanthicBiopharms operation and may open the door to a variety of strategically significant new products.

Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), one of the biggest and fastest growing producers in the industry today, has seen a somewhat meteoric rise since opening the company’s initial facility in Alberta in 2013. Today, Aurora is engaged in an aggressive international expansion, grounded in an increasingly diverse constellation of subsidiaries and strategic partnerships. Global reach and proprietary high-yield production technologies and techniques have put Aurora on the map as a funded producer, which can deliver more than 500,000 kilograms per year.

Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD), a premier certified organic Canadian producer, is another input supplier benefitting from the increased market exposure CBD has been getting, with 2018 being a pivotal year for the company. Green Organic Dutchman executed two bought deals worth $101.2 million in gross proceeds and pulled another $77.6 million in gross proceeds via private placements. The company was also able to report a healthy $263.5 million in cash and restricted cash for 2018. The Green Organic Dutchman is in a solid position to expand existing facilities and pursue international growth into markets such as Jamaica.

HEXO Corp. (NYSE: HEXO) (TSX: HEXO) is a notable low-cost producer with more than 579,000 square feet of production capacity and a 1,000,000-square-foot facility currently under construction. The company recently moved to acquire an additional 470,000 square feet of production space via an all-share acquisition of Newstrike Brands Ltd., valued at approximately $263 million. This news comes on the heels of the company’s recent announcement that it is the first cannabis company to join the FCPC (Food & Consumer Products of Canada), arguably the biggest voice in Canadian food, beverage and consumer products. This prestigious feather in HEXO’s cap was acquired just days prior to announcing impressive results for what is the first full quarter following the legalization of adult-use cannabis in Canada.

With the 2018 Farm Bill thrusting hemp-derived CBD into the limelight, the broader industry likely stands to experience a rising tide that will lift all boats.

For more information on Wildflower Brands, visit Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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CannabisNewsWire Editorial Coverage: Following the passing of the 2018 Farm Bill, CBD sales have continued their massive growth in the United States and beyond.

• Cannabidiol (CBD), a chemical found in cannabis, has seen a huge growth in sales over the past few years.
• CBD can be derived from hemp, and the passing of a new farm bill in the States makes this form of cultivation legal at a federal level.
• This forms part of wider growth in the cannabis market, as companies expand their operations in North America and even beyond.

Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) (WLDFF Profile) is among the companies benefiting from this market, with an increase of more than 300 percent in online sales for its CBD products last year. Some companies are specializing in particular niches, such as The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) with its focus on sustainable organic plants. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is making moves into Europe, with cannabis oil sales in Germany and investment in a Portuguese grower. Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is launching new products and opening its own shops across the United States. And HEXO Corp. (NYSE: HEXO) (TSX: HEXO), which recently expanded from medical cannabis into the recreational space, has seen gross revenue increase more than 1,000 percent as part of this rising tide.

To view an infographic of this editorial, click here.

CBD Drives Growth for Hemp

Hemp, a plant that has long been out of the public eye, is returning to the spotlight in a big way. A non-intoxicating form of cannabis, hemp was primarily used for centuries as a natural source of fibers, which were used in cloth, rope and even building materials. Many ships in the great age of sailing relied on hemp for their riggings.

But in the sweeping anti-drug crusades of the 20th century, hemp became caught up in attacks on cannabis. Campaigners who were determined to save consumers from their own pleasures had cannabis outlawed at a time when there was little effective way of distinguishing between hemp and other forms of cannabis. No longer needed for cloth and rigging, hemp was made illegal.

Now all that has changed — nowhere more dramatically than in the United States of America.

The Farm Bill

Hemp is making a comeback thanks to the growing popularity of cannabidiol (CBD), an active ingredient found in many forms of cannabis. It’s an ingredient that companies such as Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF), a creator of plant-based health and wellness products, have been making extensive use of in recent years. Combined with other naturally occurring plant compounds, full-spectrum CBD is used in a range of Wildflower products, including capsules, topicals, soaps, tinctures and vaporizers.

Until recently, the production of CBD in the United States faced serious restrictions and uncertainties. Many states had legalized the production of cannabis in some form, either for medical or for recreational use. In addition, there were licensed trials of the cultivation of hemp, which can be rich in CBD. But all of these plants were illegal at a federal level, meaning that even with state-level approval, cultivators faced financial limitations and the threat of government action.

All that changed in December with the passage of the 2018 Farm Bill. One of a regular series of bills governing the U.S. agricultural sector, this bill removes hemp from the list of controlled substances, making it unambiguously legal for farmers to grow hemp. This changes the landscape for CBD products in the States. Companies such as Wildflower, which has already got its products into many outlets in the health and wellness sector, will be able to expand their reach even further.

States have the right to set their own rules around restricted substances, and some states have taken an unsympathetic attitude to CBD. The Farm Bill doesn’t force states to change this attitude, but there are already signs that public opinion on all levels are changing. The regulations in many states assume adherence to the federal guidelines, and some states, such as Alabama, have already softened their stance since the Farm Bill became law.

Under the Farm Bill, hemp production will be tightly regulated. Most states already have existing regulations in place, and the U.S. Department of Agriculture will be developing its own regulations as well. But for an established company such as Wildflower, which already works in California, Washington and New York, this shouldn’t be a problem. Cannabis companies are accustomed to working in a tightly controlled environment and meeting the legal standards set by state legislators, as well as the product standards required by retail outlets. In that context, working within new federal regulations shouldn’t present a significant challenge, while the existence of consistent national standards will create opportunities for growth.

CBD Demand Grows

The Farm Bill has been driven in large part by the growing demand for CBD. An obscure and seldom discussed chemical a decade ago, CBD has emerged as an important consumer product. The gradual legalization of cannabis and research into its medical effects drew attention to the fact that those benefits were not all related to THC, the psychoactive chemical that gets cannabis users high. Identified as a chemical with great potential for health and wellness, CBD has started to be marketed in its own right and is used in products such as the Wildflower Wellness line.

Public interest in CBD has grown seemingly from nowhere. Tapping into interest in both cannabis and natural remedies, and offering treatments that may succeed where others have failed, CBD sales have soared. Hemp-derived CBD alone was a $390 million market in 2018 and is expected to reach $1.3 billion by 2022. And that doesn’t even include all the CBD products derived from other forms of cannabis.

The results for producers have been staggering. Wildflower saw its online sales grow by more than 300 percent in just nine months in 2018. In response, the company opened its first New York retail store, a sure sign of a product’s popularity in an age when so many companies are shedding their brick-and-mortar presence.

Looked at globally, CBD is in even better health. The Brightfield Group has estimated that CBD’s value will reach $5.7 billion this year and $22 billion by 2022. While research on the topic is still in its infancy, there is growing evidence that CBD could be used to treat a number of ailments, including certain extreme forms of childhood epilepsy. Even the United Kingdom, a country whose government remains staunchly opposed to the legalization of cannabis, has allowed the use of a CBD drug for this purpose.

Companies producing and selling CBD products are springing up across North America, Europe and beyond. Demand is growing, especially among millennials. That’s bolstering the impressive sales of companies such as Wildflower and putting pressure on politicians to further liberalize the laws around hemp.

Making the Most of a New Market

A lot of companies are now making the most of the growing popularity of cannabis, CBD and hemp.

Given the crossover between liberal attitudes on drugs and an interest in protecting the environment, it’s hardly surprising that specialist companies have arisen that grow organic cannabis. One of these is The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD), which announced last year that it had signed a definitive agreement to acquire 100 percent of the issued and outstanding shares of privately held HemPoland in an immediate accretive cash-and-share transaction. The move gives Green Organic Dutchman access to HemPoland’s vast distribution network, premium Cannabigold brand, and state-of-the-art hemp oil extraction technologies, as well as providing a strategic pathway into the European market for TGOD’s medical and recreational products and licensing deals.

Canada is at the forefront of cannabis legalization, as one of the early adopters of medical cannabis and the first G8 country to legalize its recreational use. As a result, the country has developed several large cannabis companies, including Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB). Aurora has an eye on the global market for cannabis and CBD, recently agreeing to acquire a 51 percent interest in a Portuguese cannabis company, as well starting sales of cannabis oil in German pharmacies.

Like Green Organic Dutchman, Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is leaning into the hippy image of cannabis through a brand that places an emphasis on health, wellness and happiness. The company is doing well with the continuing CBD craze and has recently announced the opening of CBD shops in malls in Indiana and Tennessee. The company has also formed an agreement with another company to work on CBD-infused personal care products, as CBD product ranges diversify.

A leading cannabis producer, HEXO Corp. (NYSE: HEXO) (TSX: HEXO) has expanded its interests to include the recreational as well as the medical market. Focusing on cannabis’s place in the wider market, HEXO was the first cannabis producer to join Food & Consumer Products of Canada, a group representing the Canadian food, beverage and consumer products industry. This comes as the company announced a 1,269 percent increase in gross revenue compared with the same quarter a year before, growth exceeding even the impressive performance of the wider cannabis market.

The changing legal status of CBD and the popularity of its products is just one part of a wider picture of cannabis growth, a picture that appears to be bright and promising for companies establishing a stronghold in the industry.

For more information on Wildflower Brands, visit Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.