CBD News Roundup: CBD Sales Spiking During COVID-19 Crisis

cbd sales spike during covid-19 crisis

Here’s the latest CBD news:

  • A data analytics company has found that CBD e-commerce sales have spiked during the COVID-19 crisis.
  • A new study has found that CBD helps improve the effectiveness of antibiotics.
  • Charlotte’s Web has acquired a CBD company that endorsed by retired NFL tight end Rob Gronkowski.

CBD News Stories

  1. CBD E-Commerce Sales Spike During COVID-19 Crisis
  2. Study: CBD Improves Effectiveness of Antibiotics
  3. Charlotte’s Web Acquires Rob Gronkowski-Endorsed CBD Company

CBD E-Commerce Sales Spike During COVID-19 Crisis

Brightfield Group, a data analytics company, has found that CBD e-commerce sales have spiked during the COVID-19 crisis.

Online sales for CBD have grown amongst the largest CBD companies, and consumers are indicating they expect to use more CBD during the crisis, according to data from Brightfield Group.

“Our recent consumer research indicates we can expect increased consumption, particularly amongst heavier users which is a positive indication of how the market may fare over the weeks and months to come,” wrote Bethany Gomez, the Managing Director at Brightfield Group.

The company found that 39% of CBD consumers said they would expect to use more CBD during the crisis.

Millennials and Gen Z consumers were more likely to increase their usage, with 49% saying they expect to use it more.

Brightfield Group also anticipates an increase in CBD e-commerce sales because of an expected rise in anxiety, depression, and insomnia—three of the top four conditions consumers report using CBD for.

Gomez says that a common topic that appeared in social media posts about CBD and the novel coronavirus was self-care.

“With so much of the country in quarantine right now, many are turning to self-care indulgences to keep themselves sane and even just pass the time, which is likely to help boost some CBD self-care products during quarantine time,” wrote Gomez.

Study: CBD Improves Effectiveness of Antibiotics

A study from the University of Southern Denmark has found that adding CBD to antibiotics improves their efficacy against bacteria.

Researchers added CBD to the antibiotic bacitracin against Staphylococcus aureus bacteria, a dangerous bacteria that causes skin infections as well as more severe illnesses such as pneumonia, heart valve infections, and bone infections.

The two compounds were more powerful together than the antibiotic alone.

“The combination of CBD and [bacitracin] is effective against Gram-positive bacteria,” states the study.

Specifically, the combination prevented the division of the bacteria and destabilized the bacterial membrane, leading to its destruction.

Finding helper compounds for antibiotics is a strategy to combat increasingly antibiotic-resistant bacteria.

According to the researchers of this study, the overuse of antibiotics is the leading cause of antibiotic resistance.

“By combining an antibiotic with a helper compound less antibiotic is needed in order to achieve bacterial growth inhibition or killing compared to using the antibiotic alone,” said the researchers. “This strategy may therefore decrease the likelihood of resistance development, and investigations to identify efficient helper compounds are thus important.”

Researchers also noted that “CBD is a quite effective antimicrobial compound” not only against Staphylococcus aureus but also other gram-positive bacteria.

The University of Queensland’s Institute for Molecular Bioscience’s Centre for Superbug Solutions in Brisbane, Australia, conducted a similar study, testing CBD alone against several gram-positive bacteria.

The researchers found CBD to be “remarkably effective” against some of the bacteria but warned that more studies would be necessary.

Charlotte’s Web Acquires Rob Gronkowski-Endorsed CBD Company

Charlotte’s Web, the largest CBD company by market share, has agreed to acquire Canadian CBD startup Abacus Health Products in a deal worth $69 million.

Abacus owns the brand CBDMedic, which former NFL tight end Rob Gronkowski endorsed in August of last year, that creates over-the-counter CBD topical medications.

The agreement includes Charlotte’s Web acquiring all issued and subordinate voting shares of Abacus.

At the same time, Abacus shareholders will receive 0.85 of a common share of Charlotte’s Web for every Abacus share they hold.

Stock for Charlotte’s Web rose five percent on Monday when the news was announced, while Abacus’ soared 27 percent.

According to the press release, this acquisition creates “the world’s largest vertically integrated hemp-derived CBD company.”

“The complementary strengths of our relative market positions made this merger a logical strategic move,” said Deanie Elsner, the CEO of Charlotte’s Web in a press release. “With this acquisition we strengthen the business to reflect the evolution of the category. Because most of Abacus’s products are positioned in adjacent categories, our combined distribution reach has limited shelf overlap. Together we are the most developed CBD company across every channel and segment and positioned to accelerate our growth and extend our market share. Furthermore, it enables us to drive more scale production through our vertically integrated infrastructure.”

The acquisition “expands Charlotte’s Web product portfolio for the Topicals category,” which is forecasted to become the largest CBD product category by 2021, according to data from Brightfield Group.

“This Transaction provides a unique opportunity to our shareholders and employees to participate in the compelling potential of the combined businesses,” said Perry Antelman, Chief Executive Officer of Abacus. “Abacus is one of the largest suppliers and distributors in the United States of topical products infused with hemp extract to the [food/drug/mass] and healthcare practitioner markets. By joining with Charlotte’s Web, we have the opportunity to maximize our growth by leveraging the Company’s leading brand, vertical integration, infrastructure, expertise, financial position and capital markets presence, and position the combined Company to deliver benefits for our stakeholders over the long-term.”

The two companies are now in over 15,000 unique retail locations in North America.

The CBD Insider Editorial Team

The mission of The CBD Insider is to provide consumers with a way to find high-quality, safe, and well-formulated CBD products. Our editorial team of passionate industry professionals achieves this mission by providing unbiased, trustworthy, and well-researched reporting about the CBD industry.