Baking & Snack - August 2020 - 21

SPECIAL REPORT
CBD

CBD's wellness attributes are feeding
increasing sales numbers and more
widespread acceptance of the
hemp-based ingredient.

make it into the product. The terpenes and other cannabinoids found in hemp extract that have a strong and
unappealing taste are eliminated.
"When you're an edibles company, it's all about taste
and efficacy," Ms. Wilson said. "We decided to stay true
to our mission, which was to make these cookies taste
great. You just taste the cookie, not the cannabis."
Sold across the country online and in CBD retailers,
Dr. Norm's has a wide consumer demographic. And its
sales reflect national trends for CBD edible products, es-

pecially during the coronavirus (COVID-19) pandemic.
"From elderly who love them for arthritis or sleep to
young people dealing with COVID and anxiety to the
middle-aged for aches and pains, our customers cut
across a broad range," Ms. Wilson said.
Dr. Norm's is one of many companies competing for
a share of the national CBD market - one that reached
$4.1 billion in sales in 2019, according to the research firm
Brightfield Group. Within the larger CBD market, edibles
that include baked goods saw $90.5 million in sales. CBD
beverages reached $143 million in sales and other edibles
like gummies totaled $309 million. Tinctures, which are
used to apply CBD oil to a variety of products, remain the
biggest seller with $1 billion in sales last year.
Despite the complicated network of state and federal laws limiting the sale of CBD as an edible or food
supplement, the market is projected to grow immensely
in the coming years. Brightfield Group forecasts that
the total CBD market will reach $24.3 billion in sales
by 2025, with baked goods and chocolates estimated to
reach $593 million.
For Dr. Norm's, the mission is to make tasty treats
while educating consumers about CBD. One of the biggest talking points is that CBD does not get the consumer
high. In time, Ms. Wilson hopes the US Food and Drug
Administration (FDA) will reverse its stance against CBD
in food and allow the market to reach its potential.
"In the meantime, the consumer marketplace doesn't
care," she said. "That's not an obstacle for them to purchase. On the wholesale side, individual CBD stores
don't care. It's just stopping us from large grocery store
chain distribution."

Fighting for federal approval
The cannabis plant has three main species: sativa (hemp
and marijuana), indica (marijuana) and ruderalis. All
cannabis plants contain cannabinoids which interact
with the human body's endocannabinoid system. More
than 100 different cannabinoids exist, of which CBD
and THC are the most well-known.
CBD is non-psychoactive and used as a medicinal ingredient in a range of products from foods to cosmetics. Currently, commercialized recreational and medical
CBD is legal in 36 states and the District of Columbia.
Eleven states have fully legalized cannabis, including for
recreational purposes.
"There are many misconceptions around the differences between THC and CBD, as well as the differences
between hemp and marijuana, which are largely driven
by an uncertain regulatory framework at the federal
level and a patchwork of state laws across the US," said
Melissa Abbott, vice president of Hartman Retainer
Services at The Hartman Group.

www.bakingbusiness.com / August 2020 Baking & Snack 21


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Baking & Snack - August 2020

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