Here is the latest CBD news from the week of August 2:
Ohio Gov. Mike DeWine signed Senate Bill 57 on Tuesday, which legalizes the production of hemp and the sale of hemp-derived CBD products.
The bill’s status was tenuous just over a month ago when Speaker of the House Larry Householder said the bill had stalled and was not expected to be discussed again until the fall.
Surprisingly, the House passed the bill and sent it back to the Senate with amendments.
The Senate quickly agreed to the amendments and sent it to the governor’s desk.
Regarding hemp, the bill sets up a licensing program for both farmers and processors, which will be awarded in time for the 2020 growing season.
The Ohio Department of Agriculture will administer the program and will write up the rules and regulations, which must be approved by the US Department of Agriculture.
USDA has stated it will release its regulations in the fall.
SB57 also made hemp-derived CBD products legal and lifted embargoes on CBD products.
The bill became effective immediately.
The two largest hemp-derived CBD companies in the United States are expanding their respective partnerships with Kroger.
Charlotte’s Web and CV Sciences (who owns PlusCBD™ Oil), who accounted for nearly a quarter of the hemp-derived CBD market last year combined, will have their products in 1,350 Kroger stores across 22 states now.
“Since its founding, Charlotte’s Web has been on a mission to make CBD products available for as many people as possible,” said Deanie Elsner, CEO of Charlotte’s Web, in a press release. “This distribution reach through Kroger’s market leading network of grocery stores is an enormous contributor to our mission. We are very appreciative of Kroger and all of our channel partners for the continued progress in expanding access to hemp-based health and wellness products.”
“We are pleased to further grow our distribution with Kroger and increase the availability of PlusCBD™ Oil products to more Kroger shoppers across the U.S.,” said Joseph Dowling, CEO of CV Sciences, in a press release. “We see significant opportunities to further expand our partnership into more Kroger retail outlets with additional product SKUs as demand for high quality, safe and effective hemp CBD products continues to increase with broader market acceptance.”
Kroger will place the brands’ products in several outlets, including Dillons, Fred Meyer, King Sooper, and more.
The news comes on the heels of CVS announcing that it removed Curaleaf products from their shelves, a popular cannabis brand.
Curaleaf received a warning letter from the FDA last week about making unsubstantiated CBD health claims.
Senator Dick Durbin (D-IL), a top-ranking Democratic senator, has filed a bill to reschedule and research marijuana.
Sen. Durbin’s bill would move cannabis from Schedule I to Schedule III, allowing the federal government to research it.
“With some form of legalization on the books in over 30 states and now Illinois, I want to lift federal restrictions so we can conduct additional medical research on marijuana,” Durbin said in a press release. “We need a better understanding of promising uses of cannabis for treatment, as well as how marijuana use impacts public safety and specific populations—including children, pregnant women, and drivers.”
The bill directs the National Institutes of Health, Center for Disease Control, and Substance Abuse and Mental Health Services Administration to create a research agenda.
It also directs the US Department of Health and Human Services to collect data on the usage of cannabis and how it affects public health.
Durbin’s bill is supported by the Illinois State Medical Society, Epilepsy Foundation, National Multiple Sclerosis Society, Parkinson’s Foundation, Michael J. Fox Foundation, American Public Health Association, and Chicago Medical Society.
The Canadian cannabis company Cronos has bought the holding company of the popular CBD personal care brand Lord Jones.
Cronos bought Redwood Holding Group for $300 million, which contains four subsidiaries, the most notable of which is Lord Jones.
Lord Jones, founded by husband and wife Robert Rosenheck and Cindy Capobianco in 2015, sells CBD products in several forms, including bath bombs, lotions, tinctures, gummies, and more.
Sephora picked up the brand’s products back in October 2018 and sold them online.
Only a couple of weeks ago, Sephora began selling Lord Jones products in physical stores.
Cronos, who now has a foothold in the US hemp-derived CBD market, saw its shares rise 7% on Friday.
“Our goal is to preserve the integrity of all Rob and Cindy have created, while also learning from them and leveraging Cronos Group’s resources to capitalize on the significant demand for skincare and other consumer products derived from hemp. Leading the industry forward responsibly and being a part of the conversation with industry stakeholders remains a top priority for Cronos Group in this evolving area,” said Mike Gorenstein, Cronos Group’s Chairman, President and Chief Executive Officer in a press release.
Rosenheck and Capobianco will work with Cronos once the transaction closes.