Oscamou and Simmons decided to enter the sparkling water category after noticing the market demand for a zero-calorie infusion of CBD for different day parts. Cannabidiol (CBD) beverages alone could reach $260m in the US by 2022, one market research report forecasted.
While some firms are deliberately avoiding the term CBD and referencing ‘hemp’ or ‘hemp extract’ on pack owing to the legal uncertainty over CBD (which the FDA still says is not permitted in foods and supplements), the term consumers are most familiar with and seek out in the market place is CBD, said Oscamou.
In the brand’s home state of Colorado, where Oscamou claimed that state law explicitly allows food and beverage manufacturers to use CBD in products, Oscamou said that he and his business partner, John Simmons, have become comfortable with a healthy dose of risk tolerance in using the word ‘CBD’ on the front of the can for its new sparkling water line.
“We built our business around the risk profile around this particular ingredient. When we were out in the market and listening to our consumers, we realized that the awareness was really around CBD and it could be very challenging to have to go out and educate consumers about ‘hemp extract’. We do use hemp extracts with multiple cannabinoids, but consumers are really aware of CBD and we want to make sure we’re giving people what they want,” Oscamou told this publication at the Natural Products Expo West show earlier this month.
The company’s new sparkling water is labeled as containing 25mg of CBD (from full spectrum hemp extract) available in watermelon, black cherry, and tangerine.
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