Curaleaf Holdings (TSX: CURA) (OTCQX: CURLF) announced Monday the launch of a new line of hemp-derived THC products and an e-commerce platform, joining a small but growing trend of marijuana businesses expanding into the hemp market.
The company will offer edibles and beverages under its Select and Zero Proof brands through TheHempCompany.com, its new online storefront. Products will be available for order starting June 26, with shipments beginning July 1.
Curaleaf says it wants to set industry standards for safety and quality in the “largely unregulated” hemp-derived THC market. The company said it will implement measures including:
- Age verification for consumers 21 and older
- Use of naturally derived THC from hemp
- Manufacturing in certified cGMP facilities
- Transparent labeling with QR codes linking to lab test results
Executive chairman Boris Jordan said the move represents a “pivotal opportunity” for the company to expand its brand presence in mass market retail locations.
“Our long-term strategic success rests on expanding our brands into as many points of distribution as possible, and in meeting consumers where they are on their cannabis journey,” Jordan said in a statement.
“We continue to advocate for one regulatory framework for all cannabinoids, and with the launch of both this new product line and direct to consumer marketplace, Curaleaf creates opportunity to generate substantial shareholder value while providing adult consumers with Farm Bill-compliant, responsibly manufactured, high-quality products.”
The products will be available in 25 states and Washington, D.C., through direct-to-consumer delivery and national distribution partners. Curaleaf is also partnering with DoorDash for on-demand delivery.
“We remain committed to exploring the many ways in which we can leverage our high standards for manufacturing, production and quality to deliver safe and trusted products to adult consumers,” CEO Matt Darin added.
The company plans to offer third-party hemp brands that meet its standards on the e-commerce platform as well.
Hemp hooah
Big brands have been dipping their feet in hemp-based sales for a bit now. Mike Tyson’s Tyson 2.0 brand and California’s Jeeter also introduced hemp-derived intoxicating products last year.
Industry experts have suggested that the pivots are driven by smaller profit margins in marijuana and a desire to expand brand awareness. The hemp market offers tax advantages and fewer regulations versus state-licensed cannabis operations.
However, the landscape remains volatile. Seth Goldberg, a cannabis attorney, told Green Market Report last year, “It’s hard to know when and if the laws and regulations, with respect to hemp-synthesized intoxicants, will change. That may be why companies are saying, ‘We’re going to get in now.’”
The U.S. Federal Drug Administration and Drug Enforcement Administration are also expected to issue formal rules for hemp businesses at some point, attorneys told GMR at the time.
The post Curaleaf launches hemp-derived THC products, e-commerce platform appeared first on Green Market Report.
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