Marijuana Business Magazine October 2018

T wo new rivals have surfaced in the cannabis industry: THC and CBD. Executives at some THC- focused cannabis companies are growing concerned they will lose profits and market share to CBD-only businesses peddling infused lotions, drinks and edibles. Those worries come at a time when the market for cannabidiol (CBD) is exploding, with more and more consumers becoming aware of the purported health benefits of CBD derived from marijuana and hemp.That awareness is driving up sales of CBD products and posing a potential threat to THC-focused companies. What’s a THC-driven business to do? Several industry analysts said edu- cating consumers about the nuances of CBD and THC – as well as the interplay between the two – would help ensure the two cannabinoids can coexist and continue to support a company’s bottom line. Others advised that focusing on product safety, high-quality CBD offer- ings and the whole-plant experience will all go a long way toward inoculat- ing a THC-focused business against any threat – real or perceived – from consumers’ growing appetites for CBD- infused products. Marijuana Business Magazine surveyed roughly two dozen cannabis executives and industry analysts to seek advice on how THC-focused businesses should react to the rise of CBD. Here’s a sampling of their responses. 1 Focus on health issues consumers want to solve and offer products that cater to their needs. “If you’re a THC-based company worried about losing market control to CBD products, I suggest you vacate the opinion that 30% THC bud means you’re the hottest thing on the corner and instead do some market research on what health issues people are looking to solve. Create products that produce the outcomes they are looking for. Just wait until we start to truly isolate CBG, CBC and beyond.The idea that THC is king will fall by the wayside, if it isn’t starting to already. – Sam Chapman, co-founder, New Economy Consulting, Portland, Oregon 2 Determine what consumers want, regardless of whether it’s THC- or CBD-related. “THC-based producers would be wise to learn more about consumer attitudes, behaviors, wants and needs, then provide products the customer wants, whether it’s CBD- or THC- dominant. Competition won’t stop, and the only way to protect yourself is to be proactively preparing for the future. – Karen Freese, cannabis consultant, San Francisco 3 Provide consumers with safe, effective products. “Since all THC-infused products (including those with CBD) must be tested for contaminants and residual solvents, consumers know that Sam Chapman. Photo courtesy of New Economy Consulting Source: Marijuana Business Daily Copyright 2018 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Do You See the CBD-Focused Industry as a Threat to the THC-Based Market? No 59% Yes 32% Yes & No 9% Source: Marijuana Business Daily Copyright 2018 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Do You See the CBD-Focused Industry as a Threat to the THC-Based Market? No 59% Yes 32% Yes & No 9% October 2018 • Marijuana Business Magazine • 67