I recently proclaimed 2019 the “year of CBD,” and it seems from the mainstream coverage I’m starting to see, folks got the memo.
Early in 2018, Canopy Growth Corp. (NYSE: CGC) purchased Canadian hemp producer Green Hemp, and it also bought the assets of Ebbu LLC, a U.S.-based hemp company.
For 2019, Canopy is making even bigger moves in the cannabidiol market.
On Jan. 14, the Canadian company announced it received a license in New York to process and produce hemp. In what might be the largest hemp investment to date, Canopy will invest as much as $150 million in its New York operations to produce hemp extracts and hemp-based CBD products.
Not to be outdone, Aurora Cannabis Inc. (TSE: ACB) is also getting in on the action.
In May 2018, Aurora boosted its stake in Hempco to more than 50%. For more than 10 years, Hempco has been a pioneer in hemp-based foods. A few months later, it acquired Europe’s largest hemp producer, AgroPro.
In the next few months, Aurora will unveil a plan to produce hemp-derived CBD products for the U.S. market, according to Business Insider.
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While this news is coming in at light speed, I can’t say I was surprised; the passage of the Farm Bill effectively normalizes CBD across the country by making industrial hemp, a major source for CBD, legal on the federal level.
With these reforms, retailers nationwide can sell these products without fear of enforcement action by the government.
And now CBD is poised to break into one of television’s biggest advertising venues.
That means selling CBD, from coast to coast, to the tune of billions of dollars in revenue for these companies, is the next order of business…
Advertising Will Lead to Big Bucks for CBD Companies
At the end of 2018, I saw one of the most promising signs of mainstream acceptance of CBD advertising.
On Dec. 31, 2018, Elixinol, a specialist in hemp-derived CBD, advertised on several digital billboards around Times Square. With 1 million reportedly ringing in 2019 at “the Crossroads of the World,” 2 million eyeballs could have had the chance to witness Elixinol’s ad.
That was a great start for CBD.
But it gets even better…
Get ready for even more advertising on the world’s biggest stage: the Super Bowl. On Feb. 3, when the New England Patriots square off against the Los Angeles Rams, I already know who will win.
The answer is the CBD market.
At the stadium, the Baristas Coffee Company will feature ads for its EnrichaRoast CBD coffee. Baristas was founded in 1996, and you can currently buy Baristas’ CBD coffee on its website. The company claims it will “get you through your day feeling awake and great.”
The ads will run throughout the day in and around the stadium before, during, and after the game, according to Forbes.
And this is a huge first step in the right direction.
Baristas CEO Barry Henthorn told Forbes that it’s difficult getting CBD products in the mainstream media. He noted that Amazon, Overstock, and eBay will only sell products labeled “hemp,” not “CBD.”
So think about what this will do when Amazon, Overstock, and eBay see CBD advertising at the Super Bowl. People will be a lot more educated and a lot less confused about what the difference is between THC, CBD, hemp, and cannabis.
As we’ve seen time and time again, it just takes adoption from one major player to open the floodgates for an industry.
And as the “year of CBD” keeps rolling right along, our readers will be the first to know how to profit.
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