◼ 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