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America's largest cannabis companies are reconsidering their stance on hemp-derived products. Historically, they pushed for them to remain illegal. However, some companies, such as Curaleaf (OTC:CURLF), have recently changed strategy.
A key player in the industry, Curaleaf has made a surprising shift from its previous stance, which was clear. As stated in Forbes, a former CEO remarked, "I think it should be framed as one of the most high-profile health risks available in the marketplace today." The concern was that unregulated hemp derived-THC products posed health risks and were too easily available to minors.
Curaleaf's new platform, The Hemp Company, joins a market dominated by companies like 3Chi, Bearly Legal Hemp Co., Diamond CBD, Skyhio, Boston Hempire, Area 5 and Hometown Hero. The platform features gummies and drinks with this labeling: "This product contains Delta-9 THC derived from hemp. This product is 2018 Federal Farm Bill compliant and contains a total Delta-9-tetrahydrocannabinol concentration that does not exceed 0.3% by dry weight. THC is intoxicating and affects everyone differently. Use responsibly."
In this manner, Curaleaf is shifting strategies in a move that leverages today’s cannabis industry landscape. The company is selling in the legal cannabis market as well as on the “grey” hemp but nevertheless legal market.
This move also highlights a broader divide in the cannabis industry. On one side, companies like Curaleaf see the economic potential of hemp-derived products. They are leveraging the legal framework of the 2018 Farm Bill. On the other hand, groups like the U.S. Cannabis Council are pushing for banning these products, arguing that the lack of oversight leads to consumer safety issues and easy access for minors.
Read Also: How Hemp Became America’s Loophole For Legal Highs
Recent legislative actions reflect this divide. The U.S. House Committee on Agriculture passed an amendment to close the loophole in the 2018 Farm Bill. The amendment would eliminate most hemp-derived products. The hemp industry opposes this move, arguing it would devastate small businesses and hemp farmers. State-level actions have varied. New York has banned Delta-8 THC products, citing health concerns. Colorado and Oregon have strict regulations aligning with their marijuana markets. Texas , a giant hemp derivatives market recently stopped a bill banning Delta-8 THC, which will likely be revisited in the future.
Taking a different approach, New Jersey recently legalized hemp derivatives for use in beverages. This move signals a progressive step in integrating hemp products into mainstream consumer markets, which could also play a part in the strategy shift undertaken by Curaleaf.
This battle over hemp derivatives will no doubt continue, reflecting the dynamic and contentious landscape of the cannabis industry.
Posted In: CURLF
