Bloomberg Businessweek - USA (2019-07-22)

◼ BUSINESS Bloomberg Businessweek July 22, 2019

18

● Forecastersestimatethatalmost10%ofCBDcouldsoonendupin productsforFidoorFluffy

Twoyearsago,Dingowasgoingtobeputdown.The

14 ­year­oldbasenji,inpainfromarthritisinherneck

andspine,couldbarelywalkandwouldn’teat.She

sufferedfromanxietyandhadearly­stagekidneydis­

ease.Thenshestartedtakingcannabis.

KelseyBrown,Dingo’sowner,decidedtodoseher

withdropsofCBD,orcannibidiol,threetimesa day,

usinga tincturethatruns$120fora 1­ouncebottle.

It wasa last­ditchefforttoeasethedog’spainand

anxietybeforeeuthanasiabecamea reality.“Within

a weekshecouldactuallyjumponthecouchagain,”

saysBrown,a dogtrainerinMora,Minn.

DemandforCBD,a nonintoxicatingcompound

foundinhempandmarijuana,hasexplodedin

theU.S.sinceDecember,whenCongresspassed

a newfarmbillthat decriminalizedindustrial

hemp.TheCBDmarketcouldbeworthalmost

$24billionintheU.S.aloneby2023,withabout

7%ofsalescomingfromthepetmarket,accord­

ingtoBrightfieldGroup,anindustryresearcher.

Theregulatorysituationis stillmurkyforCBD—

theFoodandDrugAdministrationhasn’tyetruled

it’ssafetoputit infoodordrinks,andthereareno

approvedpetproducts—anditsbenefitsarelargely

unproven.Butthathasn’tstoppedpetownersfrom

embracingit asanall­naturalwaytoalleviatea wide

rangeofcreatureailments,includingpain,arthritis,

andanxiety,withoutgettingthemhigh.

LikeBrown,whoseDingois now 16 andthriving,

manypetownersswearbythebenefitsofcannabis.

●Globalhempsales

$6b

3

0

2016 2020

Estimates

butpotentiallyboosttheprofit marginsof

companiesusing cannabis asan ingredient.

Worriesaboutanindustrybubblesurfacedearlier

thisyearinChinaafterinvestorsflockedtocom­

panieslinkedtocannabis.Regulatorssoughtto

reinintheenthusiasm,withtheShenzhenStock

Exchangetellingcompaniestowarninvestors

aboutuncertaintiesfacingtheirindustrialcanna­

bisprojects.

Canadianfarmershaveseena hempboom­

and­bustcyclebefore.Thecropwaslegalizedfor

productionin1998,andfarmersbenefitedwhen

hempseed tookoffas a health­foodproduct.

Businesspeakedin 2015 asSouthKoreandemand

THEBOTTOMLINE FueledbygrowingdemandforCBDasa

health-enhancingingredientin foodsandbeautyproducts,salesof

thecannabisderivativecouldhit$24billionin theU.S.by2023.

drovethemarket.ButChina,becominga cheaper

supplierforKoreanbuyers,suckedprofitaway

fromCanada’shemp­seed farmers. Still, that hasn’t

deterred Canadians from trying to cash in on CBD.

This year, hemp acreage in the country is expected

to more than double, to about 82,000 acres.

In Asia, CannAcubed’s Davies is also unfazed by

the risks. “Everybody is trying to have the same

outcome and objective: Get this industry moving,”

he says. �Craig Giammona and Bruce Einhorn,

with Ashley Robinson

● Brown and Dingo

Pets Need to , Too