CBD’s reported therapeutic properties along with regulatory changes such as the US Farm Bill and the removal of CBD from the federal Controlled Substance list have provided CBD companies with a foot in the door to the US$4.2 trillion health and wellness market. In 2019, major US retailers such as CVS Pharmacy (NYSE:CVS), Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD) and Kroger (NYSE:KR) began carrying CBD topicals including creams, sprays, roll-ons, oils, lotions and salves. Major clothing and beauty retail brands such as Urban Outfitters (NASDAQ:URBN), Ulta Beauty (NASDAQ:ULTA) and Authentic Brands Group (which now owns Sports Illustrated) have also signed agreements with cannabis companies to give shelf space to CBD derived products.
Now that CBD-infused edibles and topicals are legal in Canada, consumers can expect to see new offerings of CBD health and wellness products, including from CBD sports supplements and recovery brands. Cannabis companies such as Sire Bioscience (CSE:SIRE,OTC Pink:BLLXF,FWB:BR1B) are already working to serve this trend. The company holds a Health Canada hemp license and in May announced the acquisition of leading sports supplement company, Fusion Nutrition Inc., which offers brands carried by Canada’s top five sports nutrition retailers. “We see Fusion as a natural fit in the mainstream CBD market across North America,” said Sire Biosciences CEO Brian Polla. “The acquisition provides us with a natural entry into the broader US market, specifically the sports supplement sector.”