Curaleaf announced several launches on Monday, all of them related to hemp-derived THC products that are ostensibly compliant with the 2018 Farm Bill. First, Curaleaf announced the launch of an “all-new line of hemp derived THC products under its Select and Zero Proof brands,” which will be available for order starting tomorrow, June 26, with shipments commencing July 1. The second announcement was that the new hemp-derived products – which include gummies and drinks – will be available direct to consumers via TheHempCompany.com, “Curaleaf’s new home for all fully Farm Bill compliant hemp derived products.”
Key elements of the enterprise highlighted by Curaleaf are that all products are manufactured in a certified cGMP facility, and the company requires transparent labeling and age-gating to ensure responsible consumption. “Transparent package labeling [lists] ingredients, potency, and a QR code that links customers to certificates of analysis from independent testing labs, in addition to other important product-level information,” said the company.
Curaleaf Executive Chairman Boris Jordan described The Hemp Company platform as a “one stop marketplace for all safe and tested hemp derived products,” adding that it fulfills its essential e-commerce role of “expanding our brands into as many points of distribution as possible, and in meeting consumers where they are on their cannabis journey.” It also, per the announcement, “allows Curaleaf to expand its market reach, providing high-quality, compliant products and generating substantial shareholder value.”
Notably, the announcement also included the news that “additional distribution will include strategic partnerships through conventional retail and on-demand delivery in partnership with DoorDash, the local commerce platform.”
The Hemp Company launches with a rather sizeable national footprint, but DoorDash, which began delivering cannabis in Canada in 2022, will provide delivery services to limited states to start. “Products will be available in 25 states and the District of Columbia, with DoorDash on-demand delivery in FL / TX / IL / NJ / MN at launch,” said Curaleaf.
Cannabis Business Executive contacted DoorDash via email to try and get some more details about its new partnership with Curaleaf. We received the following reply.
“DoorDash is always thinking about new ways to provide the communities we serve with unparalleled convenience and access through our platform,” said a DoorDash spokesperson. “We continually explore and test new innovations in our marketplace. A limited number of consumers in select markets may see hemp-derived THC and CBD products from select merchants available on DoorDash.” DoorDash also clarified in its response that “all of these products are hemp-derived and contain no more than 0.3% THC by dry weight, which meets the federally legal standards of the 2018 U.S. Farm Bill.”
CBE asked DoorDash in a follow-up email if the fact that a “limited number of consumers in select markets may see hemp-derived THC and CBD products” meant that DoorDash would be leaving the marketing of hemp-derived products to the producer but have not received a reply. The DoorDash response also implies that it is open to or already engaged with hemp merchants other than Curaleaf’s The Hemp Company, but that has not been confirmed.
The new business provides a wholesale program that offers “natural, non-intoxicating products for a better quality of life,” but the FAQ on The Hemp Company website is quick to point out that products sold through the site are not always completely non-intoxicating.
“If you consume enough THC, regardless of its source, it can produce psychoactive effects, commonly referred to as a ‘high,’” clarifies the FAQ. “Hemp contains a variety of compounds called cannabinoids including CBD and small amounts of THC. The cannabinoid THC found in the hemp plant can get you high.
“Our Select hemp-derived THC products are designed to be within the legal 0.3% THC limits while also producing an elevated experience,” it continues. “Always check product labels and ensure you are aware of the THC potency and dosage of your product, especially if you wish to avoid more intense psychoactive effects.”
The website also makes clear that while the rollout is national in scope, it will be irregular in its application because of the state-by-state regulation of hemp-derived THC products.
“We proudly ship to a wide range of states across the United States,” disclaims Curaleaf on The Hemp Company site. “Due to local regulations limiting access to hemp-derived products, we may not be able to ship to your state. You can easily order from our website if you are in any of the following states: Alabama, Arizona, Arkansas, California, Delaware, Washington D.C., Florida, Georgia, Illinois, Indiana, Kentucky, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Wisconsin.”
Cannabis Business Executive also sent follow-up questions to Curaleaf but has not received a reply. We asked if they anticipate that these products will remain compliant with the new Farm Bill, which may be extended a second time due to vicious partisan bickering over the hugely impactful $1.5 trillion bill.
Curaleaf is obviously taking advantage of this moment in time by launching a scaled hemp business and national platform that not only cements its ambition to create something too big to fail, but seems to almost dare the government to come and knock it down. And while the company would never publicly admit to such a scheme, Jordan clearly expressed the stakes that are at play in the launch of The Hemp Company.
“We continue to advocate for one regulatory framework for all cannabinoids,” he stated, “and with the launch of both this new product line and direct to consumer marketplace, Curaleaf creates opportunity to generate substantial shareholder value while providing adult consumers with Farm Bill-compliant, responsibly manufactured, high-quality products.”
Curaleaf has provided the following responses to questions we sent them yesterday:
How large does Curaleaf believe the current and potential market is for hemp derived THC products?
Due to the unstructured nature of the market and lack of syndicated data, it’s difficult to project the size of the opportunity, but we certainly anticipate it could source revenue from the nearly $50 Billion unregulated market that exists in the US today. In addition, we believe the channels we’re focusing on will open the market to new consumers who still aren’t comfortable visiting dispensaries. This is simply another industry building block that will help the legal cannabis market to reach its potential of being a $100B+ industry.
Does Curaleaf anticipate that these products will remain compliant with the new Farm Bill?
The Hemp Company and its products are compliant with the existing Farm Bill. All products sold by The Hemp Company are designed to be within the “hemp-derived Delta-9 THC [containing] less than 0.3% Delta-9 THC on a dry weight basis” requirements, as outlined in the current Farm Bill.
Curaleaf has always been an advocate for well-regulated, tested products that are safe for adult consumers, whether the products are derived from cannabis or hemp. We were among the first in the industry to invest in testing labs and advanced quality control capabilities. Our expertise, quality control, labeling, and regulatory practices are much-needed safeguards and controls for the hemp-derived THC market, which we want to see addressed from a regulatory perspective in a more consistent manner. We continue to advocate for sensible regulation, even as we recognize that there is great variance in state-by-state regulations and we believe there should be one regulatory framework for all cannabinoids. As we have done historically in other businesses, Curaleaf is proactively introducing sound procedures, standards, and controls as regulators catch up to the market.
Further, Curaleaf will be closely adhering to all guidance from the FDA as it attempts to regulate hemp-derived products containing cannabinoids.
Can these products also be delivered via USPS, UPS, or FedEx?
We are specifically working with packaging and distribution partners to require strict age-gating requirements through our distribution agreements, which are designed to ensure that retailers who are responsible for enforcing age-requirements at the point of sale do so by requiring purchasers to produce a valid I.D. proving their age. These efforts are in line with our larger pursuit to bring naturally derived, safer, and more reliable high-quality products to adult consumers.
Shipments will commence July 1st, 2024.
Does Curaleaf have to comply with any state-specific regulations to deliver these products? For instance, is delivery not permitted in any markets?
We are launching 4 gummy lines (Select Fast Acting Bites, Classic Bites, Snooze Bites, and Select X Bites) as well as a beverage line (Select Zero Proof Seltzer) on delivery platforms and Direct-to-Consumer (DTC), where allowed by applicable local laws.
Products are available in 25 states and the District of Columbia via DTC delivery, Door Dash and through Curaleaf’s national distribution partners.
What are the terms of the DoorDash partnership?
Distribution for The Hemp Company will include strategic partnerships through conventional retail and on-demand delivery in partnership with DoorDash, the local commerce platform.
DoorDash has instituted a dual ID Verification process to ensure only adults of legal age 21+ have access to our products.
The DoorDash partnership will initially launch in five states: Florida, Texas, Illinois, New Jersey, and Minnesota
Will DoorDash deliver all of the hemp derived THC products sold by Curaleaf, including drinks?
All 4 gummy lines and the beverage line will be available for delivery via the DoorDash partnership in the aforementioned states.
Tom Hymes, CBE Contributing Writer, is a Connecticut-based writer and editor with over 20 years’ experience covering highly regulated industries. He was born and raised in New York City. He can be reached at [email protected].
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