United States: A coalition of major brands wants its share of CBD

The Consumer Brands Association, which counts companies such as Kellogg, Coca-Cola and PepsiCo among its members, is lobbying U.S. federal regulators to issue rules to guide the nascent cannabidiol industry (CBD), because «a significant proportion» of its members are «curious about CBD».

In letters sent last week to the Food and Drug Administration (FDA), the federal agency responsible for developing rules for CBD products, the association stated that «federal commitment is essential to ensure consumer safety» when it comes to CBD.

She claims that current US CBD policy «doesn't work» because CBD is not allowed in foods, beverages and dietary supplements, but these products are nevertheless commonly sold by companies that flout FDA regulations.

«The FDA's inaction results in a market filled with CBD-containing products manufactured in facilities that evade FDA regulation.», writes the group.

Federal bill pending

A bill to override the FDA and allow the over-the-counter sale of CBD is pending in the US Senate, but has not been heard. The FDA has been reviewing CBD policy since 2019 without a resolution.

The Consumer Brands Association intensified its efforts around CBD in early 2020, first by forming an internal CBD Advisory Council, then by forming a Coalition for CBD Regulation with other associations, such as the National Association of Convenience Stores.

Jen Daulby, the association's senior vice president of government affairs, believes that the increase in CBD consumption amid a persistent lack of regulation makes it clear that it may be time for legislators to «get more engaged on this issue».

The adoption of the Farm Bill 2018 legalized hemp at less than 0.3% THC. Responsible for developing regulations for CBD products, the FDA has officially opened a public consultation period on CBD in 2019, and extended it «indefinitely» in March 2020, after the first window closes in July 2019.

«The fact that the FDA has gone this long without intervening with a framework and more safety studies, and that this unregulated market continues, is really what's driving our increased engagement and support for efforts with the legislature, because more and more, it looks like we're going to have to ask the legislative branch to intervene to get a resolution on the issue,» Daulby continued.

An interested coalition

Some of the association's members present themselves as «CBD curious», particularly in the beverage industry, and some in topical products.

But some of the member companies seem to be more than just «curious». Molson Coors Beverage Company, a member of the association, is part of the national group Coalition for Cannabis Policy, Education, and Regulation, for example, and lobbies independently on the subject of cannabis. Another member, Amazon, is newly registered to lobby on cannabis. Finally, Recess, an existing CBD beverage company, is also a member.

The association also released a report and survey this month. The survey of 1,000 U.S. adults, published in collaboration with Ipsos, found that consumers don't know much about CBD. For example, on a scale of 1 to 10, respondents rated their «knowledge of CBD» at 3.3, and nearly three in four (74 %) «incorrectly assumed» that CBD products were federally regulated.