Market Overview

Edible CBD Products Offer Consumers a New Health Trend


NEW YORK, Oct. 31, 2019 /PRNewswire/ -- Consumer trends constantly require industries to adapt in order to thrive among the competition. Specifically, the food and beverage industry is one of the fastest evolving markets because of constant changes in consumer demands. Nowadays, the increasing demand for healthier and more organic options is prompting manufacturers to produce alternatives to sugar-packed drinks and fatty snacks. Instead, consumers are looking for products that are processed with healthier sustainable ingredients, proteins, vitamins, and antioxidants. Notably, many consumers have turned to the beverage industry for functional drinks such as kombucha. A functional drink is a type of beverage that typically conveys a health benefit such as being packed with performance-enhancing agents like nootropics and amino acids. Consequently, the growing demand in the functional beverage market sparked interest within the CBD market. CBD is a derivative of the hemp plant, which falls under the cannabis family. Typically, cannabis is associated with its marijuana component, which causes psychoactive effects because of its heavy THC concentrate. However, hemp does not cause psychoactive effects because the main compound is CBD. THC and CBD are widely different in their biological makeup, but because they derive from the cannabis plant, regulators deemed both compounds to be unsafe for consumers. However, extensive research has uncovered that CBD provides therapeutic and health benefits, which then led to the rapid emergence of CBD-based products. As such, North American consumer spending on cannabis-infused foods and drinks reached USD 1.5 Billion in 2018, according to data compiled by Arcview Market Research and BDS Analytics, By 2022, the two firms suggest that edible sales are on track to reach USD 4.1 Billion. Newleaf Brands Inc. (OTC:NLBIF) (CSE:NLB), Neptune Wellness Solutions Inc. (NASDAQ:NEPT) (TSX:NEPT), Medmen Enterprises Inc. (OTC:MMNFF) (CSE:MMEN), Liberty Health Sciences Inc. (OTC:LHSIF) (CSE:LHS), Terra Tech Corp. (OTC:TRTC)

Typically, most people consume CBD to simply relax. However, clinical trials have proven that CBD can also provide medical benefits. Specifically, patients suffering from chronic ailments such as severe pain, cancer, arthritis, and epilepsy can consume CBD drinks to subdue the symptoms. And while CBD is quickly permeating throughout global regions, the North American market is the primary driver because of legality stance. Canada moved to legalize cannabis entirely back in late 2018, which prompted a spur of recreational demand. On the other hand, the U.S. passed the Farm Bill in 2018, which legalized hemp-derived CBD products. Shortly after, stores across the nation began to commercialize CBD goods. Now, consumers can easily purchase products such as tinctures, topicals, oils, and edibles at their local convenience stores or online e-commerce platforms. However, the CBD beverage market is one of the most popular segments because consumers can easily purchase a CBD-based tincture and add droplets of CBD into their beverage. Generally, CBD can be found within beverages such as soda, juice, coffee, wine, water, and even alcohol. However, consumers can also add CBD-based powders into their beverages and some producers have even mentioned that powders are much better in terms of solubility. Overall, the cannabis-infused beverage industry is quickly gaining traction, however, some beverage producers are still evaluating the industry. Nonetheless, a handful of corporations such as the alcohol industry, have already dove into the marketplace and are already marking their presence.  "Everyone in the industry recognizes that CBD-infused beverages are going to be one of the largest category opportunities in all of CBD," said Ben Witte, the Founder and Chief Executive Officer of Recess, a company producing CBD-infused sparkling water. "As a result of that, a lot of the suppliers in the supply chain have innovated to create a format that is soluble in beverages."

Newleaf Brands Inc. (OTC:NLBIF) (CSE:NLB) is also listed on the Canadian Securities Exchange under the ticker (CSE:NLB). Yesterday, the Company and its, "wholly owned subsidiary Fresh Water CBD, LLC ("Fresh Water") announces that it has completed the redesign of its CBD bottled water. The CBD bottled water will now be offered in sleek 12oz cans. These cans will decrease overall production costs and keep the CBD more sustainable as light will not be degrading the product through clear plastic bottles. Additionally, the Fresh Water has been working with its development team to create a new and improved formulation that increases the per unit dosage from 5MG to 25MG while keeping the same great Fresh Water taste. Fresh Water expects the product to be available both online and in retailers in the coming months.

Joshua Bartch, CEO NewLeaf Brands, commented, 'After evaluating the current Fresh Water product in depth and the market as a whole, we felt that we needed a change and something to set us apart from other products currently available on the market. We've worked hard with our team to reformulate the product to increase the potency while keeping the same great taste, as well as not increasing the cost to our loyal customers. Additionally, we looked at a number of ways to better serve our customers and the environment with a new sleek can, while also improving the look and feel of the product. We are excited to debut this to the market in the very near future.'

ABOUT NewLeaf Brands: NewLeaf Brands, Inc. is an innovative Cannabidiol ("CBD") lifestyle Company. Through the Company's wholly-owned subsidiaries We are Kured, LLC, Drink Fresh Water, LLC, ReLyfe Brand, LLC and TeaLief Brand, LLC the Company's main business activities encompass the development, marketing, and distribution of CBD products (including vaporizer pens/cartridges, hot/cold tea, softgel capsules and beverages) throughout North America, South America, and Europe. In addition, NewLeaf Brands, Inc. has extensive retail and cultivation land investments in Oregon, USA."

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Neptune Wellness Solutions Inc. (NASDAQ:NEPT) (TSX:NEPT) specializes in the extraction, purification and formulation of health and wellness products. Neptune Wellness Solutions Inc. recently announced that its Solutions Business had begun offering turnkey product development solutions with hemp-derived ingredients to business customers in the United States. A U.S.-based supply chain of licenced hemp extract producers has been established, and initial purchase orders are now being processed. Neptune boasts long-standing experience in the management of custom and white label turnkey product development solutions comprising a diverse array of product forms including softgels, liquids, topicals, emulsions, and water-dispersible powders. Branded ingredients and products that have contributed to Neptune's success, such as MaxSimil® and ECSentialsTM formulations, could potentially be used in unique combinations with hemp ingredients, particularly as the U.S. regulatory framework around hemp extracts and cannabidiol (CBD) evolves. "The U.S. market for hemp is developing rapidly and represents a significant opportunity for the consumer products industry. Neptune is now offering products and services to American brands that want to create a unique hemp-based portfolio, with products made exclusively in the U.S. for the U.S." said Jim Hamilton, President and Chief Executive Officer of Neptune.

Medmen Enterprises Inc. (OTCQX:MMNFF) (CSE:MMEN), founded in 2010, is North America's premium cannabis retailer. MedMen Enterprises Inc. recently announced the opening of two new locations in the state of Florida: Central Orlando and Tallahassee. The Company now has seven operational stores in Florida, with five additional store openings in the state planned for the remainder of the calendar year. The Company is licensed for 35 retail locations in the state. MedMen Buds, the Company's new loyalty program will be available to all patients at these locations. In addition, MedMen's fully owned and operated, same-day delivery platform, which currently services California and Nevada, will be available to Florida patients soon. Together with loyalty and delivery, the Company's new store locations align with MedMen's national retail strategy of providing an industry-leading omni-channel experience to all consumers. In addition to expanding its retail footprint, MedMen remains one of the lead supporters of the recently launched constitutional amendment campaign to bring safe, regulated, and legal cannabis for adults 21 years and older in the state of Florida. The campaign committee "Make it Legal Florida" is chaired by MedMen's own Vice President of Government Affairs, Nick Hansen.

Liberty Health Sciences Inc. (OTCQX:LHSIF) (CSE:LHS) is the cannabis provider committed to providing a trusted, high quality cannabis experience based on our genuine care for all cannabis users and a focus on operational excellence from seed to sale. Liberty Health Sciences Inc. recently announced that it will open its 19th and largest Florida dispensary in Pensacola, subject to approval from the Florida Department of Health. Located at 7152 North Davis Highway Pensacola, FL., the new dispensary will be open Monday through Friday, 10 a.m. to 7 p.m., Saturday, 10 a.m. to 5 p.m., and Sunday, 12 p.m. to 5 p.m. The new 6,434 square foot store includes a spacious retail and reception area, along with two private consultation rooms and a large waiting room. As with all of Liberty's dispensaries, locally inspired wall-art will be featured throughout the store on a rotating basis. "We are excited to deliver on our continuing commitment to improve the quality of our patients' lives by providing access to our premium cannabis products right here in the beautiful and historic heart of Pensacola," said Victor Mancebo, Interim Chief Executive Officer of Liberty. "Our patients in the panhandle will now have two locations in the most western region in the Florida Panhandle. Our new dispensary sits in one of the busiest corridors in Pensacola, where our patients can enjoy the accessibility and convenience of this beautiful location."

Terra Tech Corp. (OTCQX:TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced that it started the process to open a CBD only retail location called Blüm CBD in downtown Las Vegas at its retail location on 121 North 4th Street. The future Blüm CBD is positioned to be easily accessible and draw high volumes of customers on North 4th Street, located just 100 feet from the world-famous Fremont Street Experience which attracts more than 14 million annual visitors. The design of the store will be reflective of new Blüm store concepts and the artful vibe of downtown Las Vegas. Blüm CBD is expected to have an eye-catching façade and a bright and modern interior with modular displays in place to keep the visual merchandising of the store fresh, clean and organized. Chief Executive Officer, Derek Peterson, said, "Converting our North 4th Street location into an exclusive one stop shop for CBD products will allow Terra Tech to excel in its retail initiatives and stay ahead of the booming CBD industry that's unfolding in the U.S. With its location in the heart of Las Vegas, the new CBD focused store will reflect high consumer demands and set standards for our CBD sales. Much planning has gone into operating as a CBD provider at this location and we are extremely excited to share our products with all who are a part of such an iconic city."

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