Specializing in providing peripherals to the cannabis industry such as solvents or vaporizers, California-based KushCo Holdings Inc. (OTCQX: KSHB) is now moving into CBD retail through a new partnership.
Following a sudden explosion in popularity, everything from CBD-infused pillowcases to a massive array of drops, tinctures, vape oils, and edible gummy products are currently available at a growing number of U.S. retail locations.
The burgeoning CBD industry is still finding its footing as skincare products hit the shelves of major pharmacy chains and North American licensed cannabis producers partner with internationally recognized names for CBD products aimed at human and even pet consumption.
KushCo’s newly announced partnership with sales and marketing company C.A. Fortune aims to help lifestyle companies navigate that maze of product types and retailers when entering the CBD industry.
C.A. Fortune will provide reach into retail channels and sales experience while KushCo offers hemp industry knowledge and a brand network already tailored towards CBD offerings.
Discussing the company’s move into value-added services for new hemp-focused clients, KushCo Holdings President and Chief Revenue Officer Jason Vegotsky commented:
The U.S. CBD industry appeared practically overnight in late 2018 after the Agricultural Improvement Act was passed by the Senate and subsequently signed into law by the President.
That bill legalized industrial hemp sales, defining hemp as any plant with less than 0.3% THC so as to not produce the typical high associated with marijuana.
Concern has grown among customers and watchdog groups about the quality of CBD products available, as potency calculations vary wildly between manufacturers, with some companies also including extra additives such as melatonin in their products.
In late May, the U.S. Food and Drug Administration held a public round table meeting to get feedback on how CBD products should be regulated.
New rules and restrictions on CBD are expected to be enacted in the coming months to regulate which products are specifically legal to sell, and how much of any given substance is allowed to be included in those products.