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July 12, 2021
By: Sean Moloughney
Editor, Nutraceuticals World
CBD and hemp derived cannabinoid products continue to garner consumer interest and support. The list of mainstream brands embracing CBD is growing across every category, including Burt’s Bees and Chantecaille in beauty, Vitamin Shoppe in nutrition, Molson Coors and Ocean Spray in beverage, and Martha Stewart in pet. Today’s brands and their consumers are demanding more transparency, consistency, and product sophistication. They are also asking the question, “Why would I use the same product to focus as I do to fall asleep?” For Open Book Extracts, this means CPG and pharmaceutical-level, multi-month supplier audits, as well as stringent production process and traceability requirements. This maturation, coupled with tailwinds generated by continued safety and efficacy research, global market growth, and evangelism from CEOs and government leaders, has heralded a more robust, sustainable, mainstream cannabis industry. As a vertically integrated supplier and manufacturer of cannabinoid ingredients and a research-centric organization that supports many large CPGs and MSOs in market, it is our duty to illuminate important supply chain considerations in this nascent industry. This article highlights questions you can ask your supplier to ensure they can support your long-term business needs. Ingredient Technology & Innovation The hemp-derived cannabinoid industry’s supply chain has gone through a significant maturation process since the passing of the 2018 Farm Bill. At that time, CBD isolate was the main ingredient input utilized by formulators. Most transactions were price-driven spot buys through brokers. Supplier audits and documentation requirements were light. As the supply chain has developed, the portfolio of cannabinoid ingredients has also grown. Extraction scientists and chemists have developed repeatable methods to offer broad and full spectrum distillates, certified organic ingredients, water-soluble ingredients, and minor cannabinoids—such as CBG, CBN, CBC, THCV, CBDV—at scale to support growing market demand. Alongside the development of more sophisticated extraction technology for hemp-derived ingredients, there is a growing market for semi-synthetic and bioidentical, or full synthetic, production methods. These ingredient classes are not only preferred by certain nutraceutical and CPG companies due to production efficiency, formulation ability, and consistency profiles, but they can also ensure regulatory compliance in emerging markets that do not allow botanical extracts.
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