It’s safe to say that the cannabidiol (CBD) industry is one of the fastest, if not the fastest growing industries at the moment. After the 2018 Hemp Farming Act declassified hemp as a controlled substance and allowed farmers in all 50 states to start growing the crop, tons of sellers flocked to the market.
While the sector has provided a lucrative opportunity for interested players, they have to put up with the unregulated competition the CBD industry has become known for.
To stand out from the pack, a couple of hemp businesses have begun partnering with mainstream companies. San Mateo, California-based company Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) is the latest to do so, partnering with New York-based mattress firm Casper Sleep in a bid to create a 100% hemp-derived CBD brand.
In September, the companies teamed up to launch melatonin and CBD-infused products. Plus Products co-founder and CEO Jake Heimark says that there are indications CBD can help with sleep, and that “Casper is in a strong position to communicate that.”
The development process took six months, with Plus Products conducting product and flavor testing and providing Casper with a few samples to select the final product from. Due to the complexities of the CBD industry, the two companies took six more months taking care of all the legal aspects. “Everything was harder because of the industry,” says Heimark, adding that “when you’re a company that isn’t in the industry, you have to get familiar with all that stuff.”
At the end of the process, they had created a new CBD line with three distinct products; Balance, in strawberry flavor, Uplift, in grapefruit flavor and Sleep, in blackberry tea flavor. A link on Casper’s website directs consumers to the Plus website, where they can buy a tin of 14 gummies with 24 mg of CBD.
According to Heimark, Casper had a lot of questions about the Farm Bill, and the legality of marketing and selling CBD products. “They understand that partnering with any CBD company could be a danger to their brand, so we had to create a really good product together.”
Over the years, cannabidiol has been found quite effective against an almost never-ending list of conditions, including insomnia. Although there is still scant research on CBD’s effectiveness as a medical treatment, studies have shown that cannabidiol can reduce anxiety and improve sleep.
Plus Products has created a new manufacturing facility in Oregon to keep up with the demand, and to scale up production, if need be. “It’s going to be much better than we had thought it would,” says Heimark. “We predicted a certain number of units, and it’s all selling out.”
This partnership, as well as the products that have been created by the two companies, is a development that is likely to be applauded by the entire industry, especially established CBD companies like The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF).
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