EDITOR’S NOTE
The Long Haul CBD is a category with staying power, but the state of the market doesn’t reflect that By Seth Mendelson
C
BD is at an extremely important crossroads, and the next six to 12 months could determine whether the fledgling category emerges as a major player at mass retail or is simply doomed to be another segment that was either never meant to be or could not get out of its own way. It’s been more than two years since the category burst on to the mass retail scene with promises of huge sales and profits for any mass merchant willing to stick their neck out a little and stock a product that has mixed meanSeth Mendelson Editor in Chief/ ings for different shoppers. Associate Publisher It’s been an uneven journey, to say the least. Despite the promise of huge sales — some said the category could reach $25 billion in annual volume in just a few short years — and great profits, the CBD category still is at or near the starting gate with mass retailers, with most major merchants still waiting for a blessing from the Food and Drug Administration, a much-needed push that will ease their minds and make it easier to convince the top brass that stocking CBD items is OK. Don’t be too frightened, but that blessing could be years away, if ever. Let’s also put the onus on CBD suppliers, many of whom rushed out products that simply were not good enough for store shelves or consumer needs. The result has been chaos in the marketplace, helped along by the simple fact that hundreds — maybe thousands — of different companies released products, all claiming to be better than the rest. Chaos leads to consumer and retailer confusion, and as we have all seen before, nothing good comes out of a marketplace where the end-shopper is wary of the product. It’s time the CBD market matures. Along with the natural weaning of the weak and underfunded companies, the stronger suppliers must do all in their power to make retailers and consumers feel comfortable with their products. That starts with offering the trade-quality products that are priced correctly and include the advertised ingredients. It then means offering the proper education to ensure that retailers know what to look for when creating their CBD sections, and consumers understand what they are purchasing and how the products work. CBD suppliers make a big point of saying that this is a category that is going to be around for a long time. It may be time that the industry — collectively and individually — starts acting like it. dsn
Let’s also put the onus on CBD suppliers, many of whom rushed out products that simply were not good enough for store shelves or consumer needs. The result has been chaos in the marketplace.
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March 2020 DRUGSTORENEWS.COM
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