19 Aug Top 5 Companies in the Hemp-based CBD Market
Hemp and Marijuana, though used interchangeably, are distinct strains of the Cannabis sativa plant and have different phytochemical uses and composition. Hemp has very low concentrations of THC and is rich in CBD, which results in very negligible psychoactive effects. Hemp is extensively used in industrial and commercial processes such as paper, textiles, biofuel, animal feed and clothing.
The Cannabis plant has an estimated 113 different compounds out of which THC and CBD are the two main constituents. These affect the receptors in the brain to alter an individual’s physical and mental state. THC is mainly responsible for the psychoactive effects or the feeling of “high” caused by the use of cannabis.
CBD on the other hand, has several powerful anti-inflammatory, analgesic, neuroprotective and anti-anxiety properties, which explains its growing popularity to treat a plethora of medical conditions. Unlike THC, CBD does not have any psychotropic effects and hence is widely preferred. It is increasingly being used to treat conditions such as cancer, cardiovascular anomalies, arthritis, anxiety, depression and Insomnia. In addition, it has also been proven to possess neuroprotective benefits that can treat diseases such as seizures, Multiple Sclerosis (MS), Alzheimer’s, Parkinson’s and Schizophrenia to name a few.
There is a growing demand for CBD derived from Hemp, as it eliminates the negative effects caused due to THC and ensures a safe product. The U.S hemp industry received an impetus, with the passing of the Agriculture Improvement Act of 2018. The bill made a clear demarcation between marijuana and hemp, essentially making the sale of hemp legal, thereby boosting the sale of hemp-derived cannabidiol (CBD) products.
According to a report by Grand View Research, the global industrial hemp market is expected to reach $10.6 billion by 2025. We take a look at some pioneers in the field, who are helping redefine the functioning and public perception of the Hemp Industry.
Charlotte Web Holdings (OTCQX: CWBHF)
Market Cap: $842.07M; Current Share Price: 18.73 USD
Data by YCharts
Named after Charlotte Figi, whose story revolutionized the cannabis-based medication space, Charlotte’s web is a high-cannabidiol and low-tetrahydrocannabinol strain, which was created by the Stanley brothers in Colorado. The company formerly known as Stanley Brothers Holdings Inc, made its stock market debut on August 30, 2018, with an IPO in Canada. Today the company is one of the world’s leading brands of hemp-based cannabidiol (CBD) wellness products. It is the #1 hemp brands by market share and is sold in over 8000 retail locations. In 2019 alone, the company had over 862 acres planted and had produced more than 675,000 lbs hemp in 2018.
The company’s products are made from the highest quality whole-plant hemp extracts containing a full spectrum of phytocannabinoids, which undergo rigorous quality control and testing, both by in-house and third party independent testing laboratories. All of its produce is grown on family farms in the U.S, with no place for imported hemp or hemp extracts.
A vertically-integrated company, it maintains checks and balances each step of the way to ensure that the best quality product reaches the final consumer. The company grows its own proprietary non-GMO hemp genetics, which is then manufactured into premium, full-spectrum phytocannabinoid health and wellness products, in a FDA-registered cGMP facility. It has its cultivation operations primarily in northeastern Colorado, with source contracts with farms in Kentucky and Oregon.
According to data made available by the company, its revenues have grown from $40 million in 2017 to $70 million in 2018, up to 74% year-over-year. Additionally, its Adjusted EBITDA grew from $14.3 million in 2017 to $21.1 million in 2018. For year 2019, the company projects sales of $ 120 million to $170 million, with estimated annual adjusted EBITDA of 30% to 35%.
The winner of the #1 Hemp company/ Product Award at the 2018 Cannabis Business Awards, the company is a leading manufacturer of Avant Garde Hemp extracts and CBD Oil. BlueBird was one of the earliest pioneers of hemp, and continues to pave the way with its high standards for quality control systems.
BlueBird has partnered with Colorado farmers for growing hemp in sustainable greenhouses that is rich in terpene and cannabinoid contents. It uses an environment-friendly alcohol or CO2 extraction system, in accordance with Current Good Manufacturing Practices (CGMPs). Blue Bird uses a lot/numbering system namely the Batch Database, which allows for tracking the lifecycle of each batch of its produce, including Certificates Of Analysis (COAs) for products. The COA is issued by independent third-party testing organizations after checking for potency, potential microbial life, mold, heavy metals, residual solvents, pesticides, and the complete cannabinoid profile to rule out any possible contamination.
The company shows utmost commitment to the environmental aspects of cultivation and shares a strong relationship with its farming partners, working in tandem with them to create hemp that is certified bioplastic recyclable and cruelty-free, with a low-carbon footprint. All of its produce has also been certified glyphosate-residue free, the first CBD company to be awarded this distinction. BlueBird is also committed to offering products that are fairly priced and any benefit accrued is directly passed on to the customer. In addition, the company is renowned for its exemplary customer focus and dedication to their satisfaction.
The company produces a range of extracts, concentrates, isolates, vapes, capsules and hemp-blend for animals that are THC-free. The product is directly delivered to the customers doorstep and can be chosen from a range of different blends.
CV Sciences (OTCQB: CVSI)
Market Cap: $317.05M; Current Share Price: 3.195 USD
Data by YCharts
The company develops and markets the PLUSCBD range of hemp-based CBD oils, which is the #1 selling hemp CBD supplement in North America. CV Sciences offers full traceability of the product from Seed to Shelf™, ensuring that the best quality EU certified hempseeds are planted, and the best quality product reaches the store shelves. The company has a state-of-the-art laboratory that adheres to stringent Good Manufacturing Practices (GMP) guidelines, where its full spectrum hemp extracts are processed, produced, and tested during each step of the process to ensure that the CBD meets standards and is free from contamination.
In addition, the company’s products are also sent to an independent third party lab for testing to ensure that only the best extract, that is free from any pesticides, molds, bacteria, residual solvents, or heavy metals and true to its potency claims, reaches the final customer. It has data from human clinical trials backing the efficacy of its products, besides being the only CBD brand that offers published toxicology work, which support generally recognized as safe (GRAS) independent conclusion.
The company offers a whole range of CBD based products such as CBD Balms, Spray, Drops, Soft Gels and capsules edible gummies and oil roll-ons. Furthermore it also offers CBD oils to wholesalers and retailers for further processing, leveraging its reputation as the leader in manufacturing and distributing agricultural hemp-derived cannabidiol in the natural products industry.
The company uses organic and regenerative farming practices, to provide the highest quality industrial and medicinal hemp ingredients to its customers. It has extensive hemp farms around the state of Colorado, with an estimated 1500 acres currently under cultivation. It uses its expertise in deep genetics, with over 100 different phenotypes to customize and modify wholesale cannabinoid and food products.
Colorado cultivars offer Bulk Flowers, rich in cannabinoid with specific profiles; CBD Isolates, which are 99.7% pharmaceutical grade and produced in a CGMP compliant facility; Full Spectrum Extract that are rich in terpenes and cannabinoids and contain a full phyto-cannabiniod profile. Its offerings also include THC-Free full spectrum CDB Distillate, manufactured using its advanced molecular distillation technology, in addition to a range of CBD extracts in isolated and water soluble formats to name a few.
The company also manufactures and sells a range of hemp-derived foods such as toasted hemp seeds, raw hulled hemp seeds (Hemp Hearts), and Cold pressed hemp seed oil, Hemp protein and Hemp fines. It also supplies Hemp Fibre / Best for use in Fabric and Clothing manufacturing and Hemp Hurd used in papermaking, particleboard, hempcrete, and other construction composites.
Colorado Cultivars produces white label products and also distributes products under its own brand name “Moonrise Boulder”. Its clients include Evo, Nutiva, New Belgium Brewing Company. The company has research collaboration with Colorado State University to study Phytoremediation, Hemp food nutrition and Medical impacts of cannabinoid oil
Medical Marijuana (OTCPK: MJNA)
Market Cap: $273.64M; Current Share Price: 0.0510 USD
Data by YCharts
Medical Marijuana, which has the distinction of being the first publicly traded cannabis company in the U.S, was instrumental in setting up medical marijuana dispensaries through their licensing model. The company’s Dixie Botanicals product line, a part of its Dixie Elixirs brand, is the first medical marijuana brand to make a national and international market for CBD hemp oil products. It markets its products through a network of dispensaries in medical marijuana states and nationwide online retailers in all 50 states and in over 40 countries worldwide.
The company produces and markets HempMeds® and Kannaway®, a consumer brand of legal cannabis oils containing high CBD to over 200,000 people. In February 2019, two of its products Real Scientific Hemp Oil Gold label and Kannaway Pure Gold CBD made it to the U.S. Physicians’ Desk Reference, the definitive guide on recommending CBD products to their patients.
Kannalife Sciences, its subsidiary and a phyto-medical company specializing in cannabinoid based medication, is the recipient of the first two licenses to develop and commercialize under a cannabinoid patent. It is also the first company to develop a rigorous triple lab testing regimen for cannabis testing.
In August 2019, the company and its subsidiary Kannaway were awarded three “International Stevie Awards” by the 16th Annual International Business Awards for their innovation and growth and leadership. The company also made a solid start during the second quarter of 2019, with its portfolio company HempMeds® and its subsidiaries HempMeds® Brazil and HempMeds® Mexico achieving the largest-ever sales bookings for the company in July 2019 as per a company statement.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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