CBD
The 1-2-3s of CBD C-store retailers need to do their homework and plan carefully if they want to make the most of this promising segment By Angela Hanson CONVENIENCE STORE RETAILERS across the nation agree that cannabidiol (CBD) products are going to be a major source of sales growth for the industry. Recent studies show that more than two-thirds of consumers have already tried CBD products or know someone who has.
At the same time, however, an information gap exists — most consumers also admit they don’t feel well informed about CBD’s uses, and retailers are likewise still learning what products to offer and how to educate their customer base. C-store chains such as Sheetz Inc., Kwik Trip Inc. and VERC Enterprises have introduced CBD products at some or all of their stores. More names will inevitably join that list. But how can retailers stay competitive in a segment they’re still learning about themselves? Experts say they should begin with the basics. “Retailers should start with the shopper. Determine where CBD fits with customers’ lifestyles and needs,” said Mike Luce, co-founder of High Yield Insights, a provider
of market research on the cannabis industry. “From there, consider three factors of product assortment: product form, usage drivers, and price point.” The primary CBD product forms are topicals, tinctures, vapes and edibles, with CBD-added beverages also rising in popularity. CBD’s main usage drivers are daily ritual, on-demand and evening relaxation, according to High Times’ consumer insights studies. However, despite the popularity of edible CBD products, the U.S. Food and Drug Administration (FDA) considers the introduction of food products with CBD to interstate commerce to be prohibited. Individual states have taken different stances on the legality of edible CBD products, with some explicitly permitting or disallowing their sale. Unless and until federal enforcement of the FDA’s stance begins, retailers should investigate the laws regarding CBD where their stores are located, according to the experts.
Separating the Reputable From the Risky Despite the uncertainty in regulation, many CBD manufacturers are working to ensure their products are held to appropriate standards and aren’t viewed as quasi-legal products that are only able to be sold through gray areas of the law. Eric Smart, CEO of Myaderm, whose CBD products are available at 7-Eleven and other major non-convenience
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