Altria Client Services has filed numerous patent applications with the United States Patent and Trademark Office (USPTO) related to vaporizer technology, including several that mention cannabis as well as nicotine.
On August 4, the company had published three related applications that focus explicitly on the cannabis plant. More specifically, on its “flavor and aroma characteristics,” according to Cannabis Wire.
One application, titled “Terpene production in plants,” filed by Altria Client Services and the University of Virginia Patent Foundation, details the “composition and methods for the modification of the secondary metabolic functions of glandular trichomes in plants, such as tobacco or cannabis, that control the formation of terpenes that impart specific flavor and aroma characteristics to the plant leaves are provided.”
The pine or citrus smells and flavors of cannabis buds are typical terpene scents.
“Terpenoid levels in plants such as tobacco and Cannabis can be enhanced and modified by targeted manipulation of gene expression of genes in terpene biosynthetic pathways in order to improve flavor and aroma characteristics of downstream plant-based products,” the application reads.
A related application is titled, “Increasing trichome density and improving transport of metabolites in plant trichomes … terpenoids constitute the largest and most diverse class of plant metabolites,” the application reads.
“The amount of secondary metabolites produced is often tightly correlated to the glandular trichome density present on the plant epidermis,” it continues. “One way to increase the amount of secondary metabolite production in plants is to increase the density of trichomes present on the plant epidermis.”
A third related application is titled “Tissue-specific promoters in plants.”
“Due to the important role of glandular trichomes in the biosynthesis and secretion of terpenoids, there is a need for the identification of trichome-preferred, or trichome-specific, promoters and associated cis-regulatory elements,” the application reads.
Taken together, these patent applications provide the clearest picture yet of Altria’s interests and priorities when it comes to future cannabis products.
22nd Century Group has acquired GVB Biopharma. As a contract development and manufacturing organization, GVB is believed to be one of the largest providers of hemp-derived active ingredients for the pharmaceutical and consumer goods industries worldwide based on total tonnage.
GVB’s strengths complement 22nd Century’s existing upstream and downstream value chains, which includes expertise in cannabinoid receptor science with CannaMetrix, plant research and proprietary genetics through its KeyGene partnership, breeding expertise with Extractas, and cultivation capabilities at Needle Rock Farms.
GVB expects 2022 revenue of approximately $48 million, a 58 percent increase year-over-year, gross margin in excess of 44 percent and positive cash flow. Upon closing, the transaction is expected to more than double 22nd Century’s revenue, be immediately accretive to adjusted EBITDA, and generate positive cash flow from the acquired assets in the near term.
“GVB represents a transformational acquisition for 22nd Century that will enable us to rapidly grow our hemp/cannabis franchise,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
“GVB is one of the largest CBD suppliers globally, possessing innovative, vertically integrated cannabinoid product manufacturing technologies driving industry leading scale and cost efficiency. In addition to immediately expanding our hemp/cannabis franchise capabilities, GVB represents an opportunity to double our revenue and internalize a comprehensive contract manufacturing and extraction platform which can be used to directly and exclusively monetize our differentiated and proprietary hemp/cannabis plant genetics and intellectual property. We are enthusiastic to begin working with the highly regarded and very experienced management team at GVB.”
“We are excited to combine with 22nd Century group, pairing our production and manufacturing capabilities together with the best hemp/cannabis plant science in the world,” said Phillip Swindells, chief executive officer at GVB. “Since 2017, we have built a loyal customer base and continue to add new, rapidly growing customers as demand in our industry accelerates. We sold more than five billion doses of CBD in 2021, and we look forward to further scaling our business as a part of 22nd Century’s comprehensive platform.”
GVB operates three U.S. manufacturing facilities in Oregon and Nevada, including a 30,000-square-feet hemp ingredient manufacturing facility in Central Oregon, a 40,000 square-feet white-label, finished product manufacturing facility in Las Vegas, and an industrial-scale hemp extraction facility in Prineville, Oregon.
The Hemp Industries Association (HIA) today announced that Jennifer Knaack, senior director of compliance and science for Koi CBD, and La Vonne Peck, co-Founder of Native Network Consulting, have been appointed to the HIA Board of Directors through 2022.
Credit: Mex Chriss
The vacancy appointments were made strategically to advance two of the HIA’s top hemp industry priorities: Elevating standards and sustainable development, according to a press release. “We are really lucky as an industry to have leaders willing to contribute their time and efforts to making it better,” said HIA’s president Mike Lewis. “La Vonne’s background helping indigenous groups to approach this plant as a socio-economic opportunity for their communities is going to be invaluable to our efforts to help farmers get the most value out of hemp. And Jan Knaack’s scientific expertise and focus on elevating standards are exactly what is most needed in the cannabinoids discussion we are having as an industry right now.”
Peck has more than 20 years of experience supporting the economic development of native communities, and has assisted 65 tribes with cannabis planning, according to the release. “I hope having an indigenous citizen on the Board will open avenues in the future for our Tribal communities,” said Peck, who is the former Chairwoman of the La Jolla Band of Luiseno Indians in Southern California, and a current member of the California Cannabis Advisory Committee. “We have a Board with years of experience, and I look forward to working with them,” said La Vonne, whose company Native Networks Consulting has been a member of the HIA since 2016.
Knaack earned a PhD in Pharmaceutical Sciences from the University of Southern California and will occupy the seat designated for a cannabinoids expert on the Board and act as Chairperson of the HIA’s Cannabinoids Council, an ad hoc members group focused on elevating industry standards and scientific regulations that prioritize consumer safety. She has more than 15 years of experience in analytical chemistry including serving as a laboratory director and consultant for multiple cannabis testing laboratories.
“The HIA has made such a great impact on this industry. I’m excited to join the other members of the Board and, through the Cannabinoids Council, to continue advocating for the development of hemp products from a scientific perspective —one that extends through extraction and testing of final products, and that includes safety and mechanisms of action.” Jen heads compliance and science for Koi CBD, a leading national producer and distributor of hemp extract products that is committed to the highest standards of scientific accuracy, consumer education, and safety.
The Hemp Industries Association Board of Directors, currently at 11 members, is the governing body for the association and has seen service by numerous prominent hemp industry and activist leaders over its nearly 30-year history. Nominations for HIA’s 2021 Board Elections are underway now, with a slate of candidates to fill four upcoming vacancies to be announced in September. Business and farming members with at least two consecutive years of membership are eligible to stand as candidates.
The Hemp Industries Association (HIA) announced support for the legal position that Delta-8 THC, along with all other hemp-derived cannabinoids, were federally legalized by the 2018 Farm Bill. The group cites a legal opinion drafted by attorneys Rod Kight and Philip Snow of Kight Law.
Credit: Elsa Olofsson
“It is clear that the 2018 Farm Bill, which removed hemp from the Controlled Substances Registry, directed that hemp be regulated as an agricultural product, and defined hemp to include its cannabinoids and all tetrahydrocannabinols from hemp, is the governing law for the hemp industry,” the HIA states in a release. “History has shown that natural cannabinoid consumption does not present public health and safety risks like those from alcohol and tobacco, but researchers have only begun to explore the full range of potential hemp-extracted compounds and their various properties. What is needed is a regulatory framework for their production that prioritizes consumer safety while being grounded in science.”
The HIA states that prohibition is a failed concept. It only exacerbates the threat to consumers created by unregulated markets, and is antithetical to the spirit of free enterprise. The HIA wants state lawmakers to eschew ineffective bans in favor of partnering with the hemp industry to craft hemp policy that safely opens markets, fosters innovation, spurs investment, and creates valuable jobs.
The HIA calls on industry leaders to build consumer confidence and expand the market for hemp cannabinoids by adopting the highest quality and potency testing standards for Delta-8 THC and similar minor cannabinoids, by marketing those products responsibly through use of transparent and detailed labeling, including potency data and warnings against consumption by minors.
“Businesses, farmers, and consumers all deserve regulations that support the exploration of the hemp plant’s full potential. This isn’t just about one minor cannabinoid —the list is over a hundred already and growing,” said Jody McGinness, HIA’s Executive Director “Fortunately, the industry has all the expertise legislators could need, and those manufacturing leaders and scientists are engaged and ready to help create productive policy solutions.”
The HIA’s Cannabinoids Council, a newly-formed member body focused on national priorities distinct to the cannabinoids sector of the hemp industry, has identified safe market expansion as a core focus for its early efforts. The stance on Delta-8 THC and other hemp-derived cannabinoids is in line with the HIA’s history of vigorously defending the legality of all hemp products, and supporting the growth of industries utilizing all parts of the hemp plant, according to the release.
The group, a trade association composed primarily of businesses and farms in the hemp industry, is currently engaged in two lawsuits in response to the DEA’s Interim Final Rule on the 2018 Farm Bill that was issued in August of 2020, creating a threat to extractors and manufacturers of hemp cannabinoids. This is the fourth time the association has gone to court to protect hemp since forming in 1994.
Humble Specialty Products announced its latest hemp-derived product line during the Tobacco Plus Expo (TPE) trade show held in mid-May. According to a press release, the full lineup features five product formats that allow for consumers to easily identify their best method of consumption. The CBD line joins Humble’s recently launched line of hemp wraps.
Humble CBD is available in five product formats: a balm, a chewable, a dropper, a softgel and a twist.
“We are excited to introduce our products to surfers, skaters, snowboard enthusiasts and beyond as an option to incorporate into their wellness regimens,” said Daniel Clark, CEO of Humble. “Now more than ever, people are embracing energetic routines that drive them to push further each day. We know sustaining a dynamic life requires dynamic solutions, which is why Humble CBD products are designed to boost focus and help relaxation and recovery.”
Humble’s CBD products include:
Balm 1,000 mg of CBD in a 1.67 oz bottle roll-on featured in a refreshing eucalyptus mint scent;
Chewable 750 mg of CBD in a 30-count container or 100 mg of CBD in a 10-count container in assorted flavors;
Dropper (tincture) 60 ML droppers in three CBD strengths (1,000 mg, 1,500 mg and 2,000 mg) and eight flavor options;
Softgel 900 mg of CBD in a 30-count bottle or 100 mg of CBD in a 10-count pack;
Twist Six single-serve oil drops featuring 33 mg of CBD per serving; available in four flavor options.
Humble’s CBD products are lab tested, gluten free and made from industrial hemp grown in the U.S., according to the release. Humble CBD is available for purchase in select retailers and online at www.humblecbd.com. “Whether you prefer a topical, a chewable or a single serving dropper, Humble CBD is dedicated to helping you find the perfect product to fit your needs,” said Clark.
New York state has joined a growing number of U.S. states that have expressly prohibited delta-8 THC and other THC isomers derived from hemp. However, lawmakers in the Empire State did make several small concessions to hemp producers, including a modification to limits on smokable hemp and removing a requirement that all cannabinoids over 0.05 percent THC be listed on product labels.
The delta-8 THC ban is part of the state’s revised regulations for hemp products. The new rules state that hemp cannabinoid products may “not contain synthetic cannabinoids, or cannabinoids created through isomerization, including [delta] 8-tetrahydrocannabinol and [delta] 10-tetrahydrocannabinol.”
New York has also placed a ban on hemp prerolls, cigarettes and any “flower product labeled or advertised for the purpose of smoking.” But the state health department says it will allow the sale of hemp flower, so long as the flower is not branded as an item for smoking, according to Hemp Industry Daily.
Hemp vapes are legal for customers over 21 and must carry “a warning stating that smoking or vaporizing is hazardous to your health.”
At least six states have considered or are currently updating their laws to specifically govern delta-8 THC, joining at least 11 that already have laws on the books addressing the minor cannabinoid, which can produce psychoactive effects in some people, although they are considered to be less potent than the delta 9-THC common in marijuana.
The labeling requirement remains in place for CBD and THC amounts in a product, just not for all cannabinoids in a product. The New York updates come six weeks after Gov. Andrew Cuomo signed a law making a first-in-the-nation attempt to regulate hemp operators working with flower and cannabinoid products the same way the state oversees marijuana operators, designating a new category for “cannabinoid hemp” that will be governed by a new Office of Cannabis Management.
New York’s health department told hemp and marijuana operators that it won’t require track-and-trace systems for hemp products, as some marijuana operators have requested. “Unlike medical marijuana and adult–use cannabis markets, cannabinoid hemp products can enter interstate commerce and it would be impractical to impose a state level seed–to–sale requirement on an industry not limited to intrastate,” regulators wrote. The state legalized recreational marijuana earlier this year.
Michelle Bodian, a cannabis attorney with the Vicente Sederberg firm in New York City, said that the state has the “potential to set a model for the rest of the country in regulating consumable hemp products.” But she added that the U.S. Food and Drug Administration needs to implement a single set of health-and-safety regulations. “Until there are national standards from FDA concerning cannabinoid hemp products, it continues to be very difficult and impractical for businesses to comply with these very specific state testing and labeling requirements, let alone all the other unique requirements.”
Priscilla Agoncillo, president of the Cannabinoid Industry Association, says the CBD market is poised for massive growth.
The cannabidiol (CBD) market is growing rapidly. The market is also preparing for industry regulations from the U.S. Food and Drug Administration as well as the possibility of changing rules under a new hemp bill winding its way through the U.S. Congress. Speaking during an online forum presented by TMG, a tobacco media group, Priscilla Agoncillo, president of the Cannabinoid Industry Association (CBDIA), outlined the current state of the CBD industry and what manufacturers, retailers and consumers can expect through 2021.
Estimates by New Frontier Data say the CBD market will increase from $390 million in 2018 to $1.3 billion in 2022. Additional research by BDS Analytics and ArcView Market Research suggests that CBD sales will reach more than $20 billion in 2024. CBD already comes in numerous forms, such as oils, tinctures, capsules, edibles, even topicals and cosmetics. CBD products also are expected to expand into infused beverages, suppositories, sprays, inhalers and a wide variety of hemp smokable products, according to Agoncillo. There will also be a significant increase in cosmetics and supplements that contain CBD as well as more novel drugs introduced as companies expand research and development efforts.
“In distribution channels, despite strict rules and regulations, the number of dispensaries and authorized retail storefronts that sell cannabis-based products to consumers will be opening due to new regions and states legalizing (marijuana) to meet the demand of consumers,” Agoncillo said. “Additionally, with the increase of product types, more big-box retailers will be stocking more CBD products and fostering relationships with CBD companies in research and development.”
Agoncillo expects the popularity of CBD products to continue to grow as the scientific evidence of CBD’s benefits comes to light. The research and findings will also boost efforts by companies looking to introduce new products and develop new uses for various types on cannabinoids, which will increase integration with new technology and delivery systems. There are currently an estimated 104 cannabinoids in the cannabis plant.
Looking at the top CBD trends in 2021, Agoncillo says that niche market efforts will become larger and more formalized as brands continue to seek out less crowded consumer segments. This will further diversify and differentiate each brand and allow for businesses to achieve higher returns on investments (ROIs) on exploratory segmented marketing efforts.
“Brands will move toward proven consumer packaged goods (CPG) models focused on brand family extensions, including the marriage of complementary products and product iterations. Companies will work towards developing diversified portfolios and specific consumer segmentation,” she said.” You will see brands that will follow the Procter & Gamble family of brands business model or create line extensions of existing brands.”
Priscilla Agoncillo
Moving forward, Agoncillo says that the success of the CBD market will be predicated on understanding consumer market entry and adoption trends. According to High Yield Insights, CBD gummies are the entry point for most new consumers (at a rate of 60 percent) before trying other types of CBD products. Another growing entry point is CBD-infused beverages. A recent CBD beverage study released by High Yield Insights and Innovate MR revealed just how much legroom there is in the CBD beverage segment, according to Agoncillo. Among 4,200 survey respondents, only 28 percent report finding “a CBD product brand or format that works for them,” according to the research.
“We project exponential growth in this segment [along with increased] diversity and inclusivity. Asian, Black and Hispanic consumer marketing efforts will support cultural competence, particularly among the nation’s largest brands,” said Agoncillo, citing her organization’s market expectations. “We expect to see more focus on niche marketing as consumer brand loyalty shifts toward the brands that consumers believe, respect and understand. More brands will concentrate on the growth opportunities within the Asian, Black and Hispanic consumer market, which have remained relatively untapped by CBD companies. One of the first signals of brand dominance in this segment market is the introduction of unique campaigns, specifically built to appeal to Black and Hispanic consumers, as well as Spanish-language advertising, packaging and support.”
Exploding anxiety rates and associated mental health issues, especially surrounding the Covid-19 pandemic, will also provide hemp and CBD brands with new opportunities to promote the efficacy of CBD. Agoncillo says her organization is seeing increased focus on this niche market, which can be tricky to navigate due to advertising restrictions.
“Brands are finding value in workarounds that allow them to leap over ad restrictions via targeted keyword searches; 25 percent of new market entrants purchased CBD to cope with pandemic-related stress and anxiety,” she said. According to High Yield Insights, more than 83 percent of U.S. employees reported mental health issues during 2021, and over 67 percent of U.S. employers project another mental health crisis within the next two years.
“We project heightened partnership and growth opportunities in CBD products focused on stress, anxiety and sleep. Staying ahead in CBD as a highly regulated, newly developing industry, it is important that you obtain legal counsel to assist in the understanding of changes in regulations as well as to help you keep up with the constantly changing atmosphere,” explained Agoncillo. “Keep your company in compliance with regulations, always. As many of the regulations have not been finalized to cover the entirety of the CBD industry, it is safer to always err on the side of caution by operating your company according to GMP and other top-tiered standards.”
New regulations for the CBD industry are also on the horizon. Draft rules from the FDA are currently with the White House’s Office of Management and Budget; however, review of those rules is currently being postponed by the Biden administration. Agoncillo says that no one in the industry knows exactly what those rules entail.
“It’s very interesting because I remember when that report came out; it was back in October 2020, and the media would contact us and ask for our opinions on what that report was and what the regulations are. The truth is that they didn’t release it to anyone,” she says. “Through the CBDIA, we have a lobbyist in Washington that’s dialed in and has his finger on the pulse of everything that’s happening. And they haven’t shown what those regulations are to anyone. However, we do know that it is suggested that things are moving towards GMP standards. In the U.K., they’ve adopted the novel foods application for their CBD products. They’ve moved full steam ahead there. So there’s a suggestion that it might follow that closely. But obviously, we don’t know until they actually come out. This is why it’s really important to be involved with different industry associations and different organizations because they are going to be the first to get the word of how it’s going to actually roll out.”
Another legislative change is brewing in the U.S. Congress. On Feb. 4, 2021, Congress introduced another CBD deregulation bill, H.R. 841—the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021. If passed, the bill would legalize the marketing of hemp, CBD or any other ingredient derived from hemp in a dietary supplement, provided the supplement satisfies other applicable requirements. The bill is in committee as of this writing.
Agoncillo says another important part of the success of a CBD business is participating and supporting the community. She says that owners can help their company succeed by joining and being active in relevant cannabinoid-related industry associations, attending and being present at key conferences and crafting business outreach accordingly. Owners also need to hire the right staff to help them grow.
“Keep your CBD company ahead by staying on top of the latest medical research and/or participating in the R&D to further advance the science of CBD and the industry as a whole. Hire talent with five-plus years in the cannabis or hemp industry to help navigate through the development of the CBD segment of your business model,” she says. “You will need a seasoned insider that understands the culture and can effectively translate that to your company.”
Experienced staff can help guide business owners through the smoke and mirrors to avoid pitfalls, harmful partnerships and assist in forming a proper strategy for a business model. Additionally, experienced talent will have key relationships and resources in place to assist in executing business endeavors, according to Agoncillo.
“We need high-operating brands and companies out there to apply their talents and their products and their technologies into the CBD space. The consumers need it,” she says. “We want it. And there’s no better time to really sink your teeth into this industry. And it’s very exciting because we can form this industry into what we need it to be.”
For the CBD market to thrive, it requires clear regulatory framework, a supportive government and strong consumer demand. All three have aligned in the UK this year. From a regulatory and government perspective, signals from the Food Standards Agency (FSA) and the Home Office are increasingly positive. While rightly making consumer safety the top priority, they seem to be putting consumer choice and the desire to support the development of the UK industry in a firm joint second.
Credit: Elsa Olofsson
According to an article by Tony Reeves in the The Grocer, the final ingredient – consumer demand – is certainly there. As a ‘hero ingredient’, CBD has the potential to enhance multiple categories and formats. In the soft drinks industry, for example, it could in time match the £2bn energy drinks subcategory, representing over 5 percent of the sector’s value. Another growing area is supplements. During Covid, consumers have increased their focus on supplements and health-promoting ingredients, including those providing CBD as a main component.
Still, post-Brexit Britain presents fresh opportunities for creating a vibrant and growing CBD sector. Indeed, the Taskforce on Innovation Growth and Regulatory Reform states its primary objective is to “scope out and propose options for how the UK can take advantage of our newfound regulatory freedoms”, and will report to the prime minister this month.
Against this backdrop, the UK is uniquely placed to become a leading operator within the sector and is already viewed as a key market by manufacturers across Europe and North America. An attractive market has high barriers to entry but low barriers to growth. A sensible regulatory framework, quality standards and an increasingly educated customer base is building the entry barriers. And, for the brands that can comply and deliver, the market holds endless possibilities.
Humble Specialty Products announced the launch of its inaugural hemp wrap product line. The Humble Hemp Wraps brand was created by the team behind the vape company Humble Juice Co. and the company intends to deliver a hemp-derived alternative to conventional, tobacco-based rolling papers.
“Humble Hemp Wraps offer a perfectly balanced, sweet inhale and flavorful exhale to provide a pure smoking experience,” said Daniel Clark, CEO of Humble Specialty Products. “We took time in creating our hemp wraps so that they offer superior flavor, a smoother burn and are easy to roll.”
Humble Hemp Wraps come in packs of two and are available in eight flavor-filled options: Apple, Blue Razz, Grape, Mango, Natural, Peach, Vanilla and Watermelon.
Humble Hemp Wraps aims to break the trend of standard tobacco-derived products by creating tobacco-free wraps that incorporate natural hemp ingredients. Humble Hemp Wraps are designed with a super velvety texture, a waved paper edge for easy rolling and rich flavoring for a quality smoking experience, according to a press release. Humble Hemp Wraps are currently available for purchase at select retailers nationwide and online at www.humblehempwraps.com.
Virginia became the 16th U.S. state to legalize the possession of small amounts of marijuana on Wednesday. Under the new law, adults ages 21 and over can possess an ounce or less of marijuana beginning on July 1 this year, rather than Jan. 1, 2024.
Credit: Rex Medlen
Gov. Ralph Northam, a Democrat, proposed moving up the date, arguing it would be a mistake to continue to penalize people for possessing a drug that would soon be legal. Lt. Gov. Justin Fairfax, also a Democrat, broke a 20-20 vote tie in Virginia’s Senate to pass the bill. No Republicans supported the measure.
Democratic House of Delegates Speaker Eileen Filler-Corn hailed the plan, according to NPR. “Today, with the Governor’s amendments, we will have made tremendous progress in ending the targeting of Black and brown Virginians through selective enforcement of marijuana prohibition by this summer,” she said in a statement.
Republicans voiced a number of objections to what they characterized as an unwieldy, nearly 300-page bill. Several criticized measures that would grant licensing preferences to people and groups who’ve been affected by the war on drugs and make it easier for workers in the industry to unionize. Senate Minority Leader Tommy Norment also questioned Northam’s motives.
“We have a governor who wants to contribute to the resurrection of his legacy,” Norment said, referring to the 2019 discovery of a racist photo in Northam’s 1984 medical school yearbook.
The accelerated timeline creates an unusual situation for Virginia cannabis consumers. While it will be legal to grow up to four marijuana plants beginning July 1, it could be several years before the state begins licensing recreational marijuana retailers. And unlike other states, the law won’t allow the commonwealth’s existing medical dispensaries to begin selling to all adults immediately.
Jenn Michelle Pedini, executive director of Virginia NORML, called legalization “an incredible victory” but said the group would continue to push to allow retail sales to begin sooner, according to NPR. “In the interest of public and consumer safety, Virginians 21 and older should be able to purchase retail cannabis products at the already operational dispensaries in 2021, not in 2024,” Pedini said in a statement. “Such a delay will only exacerbate the divide for equity applicants and embolden illicit activity.”
