After launching a new line of gummies back in June, Charlotte’s Web Holdings, Inc. (CSE: CWEB; OTCQX: CWBHF) announced those hemp-derived CBD products are now lining shelves in more than 700 additional storefronts.
That major expansion took place through a deal with The Vitamin Shoppe (NYSE: VSI), which sees Charlotte Web supplying gummies, oil tinctures, and liquid capsules to stores in 45 states.
CBD offerings will now sit alongside nutritional supplements, homeopathic remedies, and natural beauty products at Vitamin Shoppe locations, as well as through the company’s online store. The Vitamin Shoppe Chief Executive Officer Sharon Leite commented:
While Charlotte’s Web gummies are marketed with names like Calm, Recovery, and Sleep they notably do not include any of the health claims that saw the U.S. Food and Drug Administration (FDA) send a warning letter to rival multi-state operator Curaleaf Holdings, Inc. (CSE: CURA; OTCQX: CURLF).
Following a public hearing at the end of May, the FDA is expected to release new guidelines and regulations for CBD marketing by the end of the year.
While the specifics of those updated regulations are not yet clear, the FDA has previously stated legislation may be required to fully clarify how hemp-based CBD products can be marketed and sold.
This is the second major CBD deal Charlotte’s Web has struck in recent months, with hemp-based products from the company now available in the Kroger family of stores across 22 different states. Struck early in the summer of 2019, that deal represented one of the largest market penetrations for CBD products outside the typical convenience store or specialty vape shop locations.
Although the current Charlotte’s Web stock price of $14.20 a share is down significantly from its April position, that price remains much higher than other companies in the cannabis industry and has continued to climb since mid-June.
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