Am I Ready to Enter the CBD Industry? (Part 2)

Differentiating Your Brand

With stiff competition comes the need for brand differentiation in many forms. Ideally, consumers of any product need to feel that the brand fits with who they are, their motivations for buying, and their preferences for how they use the product. Examples of brand differentiation include flavoring, price, purity/concentration, and fast-acting delivery systems. In those jurisdictions where edibles are legal, marketing can also focus on product novelty. Make sure brand messaging is consistent among employees, and be sure to tailor your marketing language to resonate with distinct age groups and other demographics.

CBD Certification: the New Option to Increase Consumer Confidence

As of January 2019, CBD manufacturers may now obtain a new U.S. Hemp Authority™ “Certified” Seal. Because many manufacturers are not yet certified, this third-party quality verification is an excellent way to differentiate your brand. The U.S. Hemp Roundtable funded its development, joined by the Hemp Industries Association, the American Herbal Products Association, and other related organizations. The Roundtable explained the certification this way: “…industry leading firms, top-tier testing laboratories, and quality assessors developed comprehensive guidance for growers and processors of hemp.” Certification requirements include specialized training as well as a third party audit.

Watch Out for Unsubstantiated Health Claims

According to Harvard Health Blog, strong scientific evidence is available that CBD reduces seizures in children with certain childhood illnesses. In addition, although further research is needed, CBD may be a potential option to manage anxiety, chronic pain, and insomnia. However, the authorities have been cracking down on health claims made by sellers of all sorts of cosmetic, herbal, dietary, and other consumable products, including CBD.

“Due to its limited resources, the FDA has chosen to focus enforcement actions against manufacturers who sell and advertise CBD products with unsubstantiated

therapeutic claims that may put consumers at risk,” wrote Nathalie Bougenies, a corporate law, intellectual property, and cannabis law attorney on the Cannalaw blog. For instance, the FDA has issued warning letters to CBD manufacturers for claims that CBD may treat cancer, autoimmune conditions, and neurodegenerative diseases. Therefore, Bougenies recommended that CBD manufacturers and distributors refrain from making health claims.

In conclusion, the CBD industry is rife with both opportunities and challenges. With knowledge and strategy, success within the industry is within your grasp.