Major US companies are very interested in CBD

CBD and Americans

Did you think that CBD products were regulated by the FDA (Food and Drug Administration) in the USA?

Make no mistake, this legislation is coming. You’re not the only one to make this mistake. According to a survey of 1,000 Americans conducted by the Consumer Brands Association, 74% assumed that there are federal regulations for CBD products. This is not the case.

Additionally, when people are asked to rate their knowledge of CBD on a scale of 1 to 10, the average score is only 3.3. 26% of Americans admit to having used CBD!

The market for CBD products continues to grow in the US despite the absence of FDA regulation. However, this lack of understanding on cannabinoids has led to a call from major US companies to introduce legislative framework for CBD.

American legal inertia

The Consumer Brands Association brings together industries that manufacture everyday consumer products such as food, beverages, household and personal care products. Among their ranks there are well-known companies such as Coca-Cola and Kellogg.

The association sent letters to the FDA in July 2021 asking the US authorities to regulate CBD products in order to ensure consumer safety, keep consumers better informed and give companies a legal framework. According to the companies that signed the letter, the current US policy governing CBD is ineffective. The legalisation of hemp containing less than 0.3% THC, which came into effect when the 2018 Farm Bill was passed, was not followed by the regulations required to regulate CBD products.

The FDA has set up a public consultation on CBD in 2019 and extended it to 2020, but no decisions were made. Although cannabidiol is not authorised for use in food, dietary supplements and beverages, it is present in many products. The proposed federal legislation to allow over-the-counter sales of CBD has also been unsuccessful. The inaction of the FDA and US politicians is being highlighted by the companies calling for resolutions. 

Large business interest in CBD

Faced with the FDA’s inertia, the association decided to implement several CBD initiatives in early 2020. Firstly, an internal advisory board for cannabidiol was established. The Consumer Brands Association has also formed alliances with other associations, such as the National Association of Convenience Stores, to campaign for CBD regulation.

According to the association, the molecule is of interest to a number of companies, in particular drinks and skin product manufacturers. There is a particularly great interest in legal cannabis.

Some of the association’s member companies are very active in lobbying for CBD, such as the Molson Coors Beverage Company. Amazon has even joined the association with the clear objective of lobbying for cannabis.