Make CBD Products an In-Store Destination Experts weigh in on the best ways to merchandise and market these emerging products By Melissa Kress
emerging category for retailers across all channels.
CBD IS ARGUABLY THE NEXT
With hemp-derived CBD gaining in popularity — in line with overarching health, wellness and antipharma trends — and product availability and variety increasing, the market is on track to grow to $23.7 billion through 2023, according to a new report by Brightfield Group, a predictive analytics and market research firm for the legal CBD (cannabidiol) and cannabis industries. That is a sales projection that may be too good to pass up for convenience store retailers, who are facing continuous declines in cigarette sales and a slowdown in foodservice growth. While the Chicago-based Brightfield Group expects mass retail chains to eclipse all other channels for CBD product sales this year — comprising 57 percent of U.S. sales in 2019 — drugstore chains CVS, Walgreens and Rite Aid have thrown their hat into the CBD ring, and some c-store operators are beginning to join the movement as well. In June, the Asian American Trade Associations Council (AATAC), one of the largest associations for independent c-stores and gas stations in the country,
announced that it is joining forces with Harvest Health & Recreation Inc. to roll out CBD products to more than 10,000 retail stores nationwide. AATAC’s primary and affiliate members operate many franchises of the most popular branded retailers, such as 7-Eleven, Circle K, Sunoco and Chevron, among others. The association’s multimillion-dollar partnership with Harvest Health & Recreation is starting out with two CBD vape product lines: Harvest’s Co2lors brand and its premium CBx Essentials brand, according to Harvest Chief Operating Officer John Cochran. “We are exploring numerous other product forms that make sense in convenience and will be bringing those to market with the AATAC team ASAP,” Cochran added. When announcing the partnership, AATAC said it believes c-stores and gas stations can account for $8 billion to $10 billion of the overall U.S. CBD marketplace. Altoona, Pa.-based convenience store retailer Sheetz Inc. is also getting in on the action. The more than 580store chain launched an extensive line of premium CBD products at a select group of 140-plus locations across Pennsylvania in the spring. The stores are offering both isolate and full-spectrum products, including topical
Kwik Trip Inc. dedicated a page on its website to explain to its customers what CBD is and isn't. 54 Convenience Store News C S N E W S . c o m
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