The New York Times reports this morning that “a little more than six years ago, CBD, the nonintoxicating component that is derived from cannabis or hemp, was poised to be the next big ‘it’ ingredient, part of a wave of beverages and foods that were promoted as having healthful benefits or providing relaxation. Start-ups flooded the market with products, many promising to soothe stressed-out and anxious consumers.
“At its apex around 2018, CBD was everywhere, appearing in water, chocolate bars, tinctures, gummies and skin serums. Consumers could buy athleisure apparel infused with CBD oil and feed their nervous pups CBD chews and snacks. Big corporations even jumped in. Molson Coors teamed up with a Canadian cannabis firm to create a line of CBD-infused drinks. Constellation Brands, the maker of Modelo beer, made a $4 billion investment in a publicly traded cannabis company. Ben & Jerry’s began looking into creating CBD-infused ice cream.
“In the last couple of years, however, the industry has stalled out. Molson Coors ended its joint venture, and Constellation has written down more than a $1 billion of its cannabis investments. Large companies have shelved plans for CBD products, and hundreds of start-ups have either shut down, shifted to other ingredients or simply tempered their growth projections.
“Hopes for resuscitation of the market through efforts by the industry to put federal regulation of CBD into a new farm bill were dashed when Congress passed an extension of the 2018 version of the bill in the fall.”
KC’s View:
Somehow, it isn’t really surprising that CBD may be more of a niche product than people expected a half-dozen years ago. There are very few magic bullets, and certainly a lot fewer than many marketers expect hope there are.
It doesn’t mean that it will go away. Just that revolution gives way to evolution.
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