We’re going to see more CBD products on the shelves than ever before, but not all products are going to help the cannabis industry be taken seriously…
When I proclaimed 2019 to be the “Year of CBD,” I knew that we were going to see a lot of companies race to get products on the shelves. In just the first few months of this year, we’ve already seen that with cafés concocting CBD-infused lattes all the way up to CVS carrying CBD creams, sprays, and lotions.
Know this – the more positive attention this subsector of the cannabis industry gets, the better it is going to be for our top CBD holdings in the Cannabis Investor’s Report model portfolio. The general public will buy more CBD products, which will increase sales and help send stock prices higher.
And when there are new CBD companies looking to go public, I will always let you know about the best of the best.
However, what I’ve anticipated is there will be gimmicky new products flooding the cannabis market.
And that’s what we’re seeing with CBD-infused jelly beans.
The creator behind the popular Jelly Belly product line has launched new beans in 38 flavors that contain 10mg of CBD. There isn’t anything nefarious around his new company, Spectrum Brands, but I’m worried that it’s not providing any benefit to a cannabis industry that is trying to be taken seriously.
There are two problems with such a quick release of this product, and it plays into regulations I’ve recently discussed.
Only Buy the Top CBD Stocks
As more individuals learn about the health benefits of CBD, they are going to want to buy CBD-infused beverages and CBD-infused food.
But the problem is that creating cannabis-based medicine is still in its early stages, and the companies that rush to create CBD-infused products without due diligence may only delay the industry from gaining widespread adoption.
Some of the products may be ill-advised creations that don’t taste very good or have such a low CBD dosage that there isn’t any reason to put it in the product (other than to make a quick buck).
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Remember that first impressions are everything, so if we see a wave of CBD products that are of poor quality at worst or mediocre at best, it will be hard for a new CBD consumer to trust the industry as a whole.
The more confusion consumers experience, the more cause regulators will have to step in with increased oversight, further delaying the mainstream acceptance of the cannabis industry.
Moral Obligations and Responsibilities
What’s also of specific concern with the term “jelly bean” is its existing appeal to children. We do not want products intended for adult use to fall into the wrong hands.
There is a way around this. By taking the initiative to collaborate with regulators, Spectrum Brands can create a responsible package that is neither appealing to nor easily opened by children. Such a move would be a show of good faith both to regulating bodies and concerned communities, and the brand could still be leveraged to the company’s success.
But it takes time to complete that process, and any company looking to make this move needs to consider whether it actually has a reason to enter the field beyond a quick cash grab.
So if you see a company plans to release cannabis-infused products, even if there is no THC in the product, first ask yourself if that company has any business making a cannabis-infused product. For those of you with NICILytics, you already know that we rate companies – from 0 to 5 – by subsector within the cannabis industry.
That’s just another powerful investing tool that helps you identify the top CBD stocks to own and which ones you should avoid.
Now, at this point, you may be asking yourself, “Greg, what makes the CBD products that the companies in our portfolio sell different than CBD-infused jelly beans?”
The difference is that the companies in our model portfolios sell oils, balms, and tinctures.
Whereas health officials in New York City have cracked down on bars that sell CBD martinis, the 2018 Farm Bill legalized the manufacturing, distribution, and the sale of hemp-derived products anywhere in the United States.
Making oils and tinctures the right way is the first step in creating a CBD empire. Then, a CBD firm can partner with major companies to create CBD-infused products.
So when the FDA reaches a consensus on how infused beverages and edibles should be regulated, a company like Coca-Cola will want to partner with the firms in our portfolio because they already sell the best CBD oil money can buy.
But until then, don’t get caught up in all the gimmicks.
Thank you for being an important part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
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4 responses to “Our Top Picks Don’t Make Gimmicky CBD Products”
March 27 2019