Every week I get asked many questions about the cannabis industry, where it is now? What are the challenges? The future?
I want to answer these questions, from Reakiro.
Every week I get asked many questions about the cannabis industry, where it is now? What are the challenges? The future?
I want to answer these questions, from Reakiro.
I’m the boss, but someone tell my wife!
Over five years ago, my wife and I decided to get involved with the hemp business and help change the world.
I’ve realised I’m getting old.
Earlier this year, my beautiful daughter Victoria, our firstborn left home for university in the US and in the next few years, my sons will follow a similar path.
One of my early big CBD failures was an over-expectation of sales. With a product that helps everybody, we thought we would instantly be selling across the world, but it didn’t quite work out like that.
The CBD industry’s success is simple, it’s because the product works.
Initially, when introduced to hemp and CBD, I laughed and thought of hippies smoking weed, getting high. Only after learning the true history and versatility of the plant, did I truly understand its potential for natural positive change in the world.
Like everyone reading this blog, we have all lost loved ones due to illness and disease, I am no exception. I lost my mother over 10 years ago. She was only 64 years old, a non-smoker, and in perfect health throughout her life, but cancer took her away from us. My five siblings and I were devastated as any family would be.
For the past few years, the CBD industry in both the UK and Europe has been growing at an unprecedented rate. Although the market, and knowledge in and around the industry, still stands slightly behind how rapidly things have moved in America – industries in the UK and Europe have still boomed, and continue to do so. In January 2019, a moment that you could also stamp as the period that CBD was moving firmly from the fringes of health foods and into the mainstream, the European Union officially listed CBD extracts and isolates under the Novel Foods act.
At the time, some may have viewed this piece of legislation as somewhat archaic. The novel foods act defines food “that has not been consumed to a significant degree by humans in the EU before 15 May 1997”. Now, seeing as the benefits of hemp have only been rediscovered on a large scale in the West in the last decade, it seems evident that of course it was not consumed “to a significant degree by humans in the EU’ in 1997.
But like most things that fall through the echelons of bureaucracy, this legislation is essentially a paperwork task for CBD producers and manufacturers. That is to say, that this novel food ruling should in no way have impeded the product, sales, and consumption of CBD in the UK and the EU over the past couple of years.
It has been well known within the industry for quite some time that the novel food act was going to be implemented across countries in the EU as well as the UK. Some companies may have been hesitant when it came to the UK and questioned whether Brexit would impact this, i.e. would the European Commission still have ruling power.
So what do we know? Those in the industry should have known, for some time now, that the applications for Novel Food status must be submitted by the 31st of March. This is all manufacturers and producers of CBD. And the applications for novel food status are not granted per company, but rather per product, meaning that all products which are manufactured in the same way will only require one certificate. But a manufacturer may have to submit several applications if they produce a variety of products and product forms.
The information that certificates are granted due to the production process and not with the company name has a seismic impact on what this means for many sellers and resellers of CBD products. We’re going to explain this in greater depth in just a second.
But first, we feel, it’s crucial to address the uncertainty that the seemingly sudden imposition of the 31st of March deadline for novel food status application has created in and around the CBD industry. A feeling of panic has been cast across white label, private label and wholesale clients. There is palatable anxiety from these clients asking will their products be taken off the shelves? Will they be able to continue their business? Who is responsible for obtaining the correct certifications? And how do they stay up to date with the apparently constantly moving rules on legislation?
As everyone reading this should know, we are working in the industry of health and wellness, and a very substantial part of our mission is to help people find calm, naturally. So, what needs to be done? Instead of breeding panic, we – the custodians of the CBD industry – need to take some of our own medicine and calm down.
In terms of regulation, there has been a breakthrough this week for full-spectrum CBD as the EIHA (European Industrial Hemp Association) Novel Food Consortium passed an administrative check by the FSA (Food Standards Authority). The EIHA release the following statement:
“We are delighted to announce that both regular/full-spectrum and natural isolate products of EIHA consortium partners can remain for sale on the UK market, following both applications passing the key administrative check by the UK FSA.”
Moving forward, everyone (both suppliers and clients) needs clarity. And this means clarity at every step of the process in the supply chain. The greater the transparency, the more trust we can build in this industry, which will ultimately attract more customers, more clients, and much greater investment. If we continue to build in this way we can create more jobs, employ more people, and get our great products out into the world to even more people.
As long as the product which you are supplying is of good quality and abiding by the regulations and guidelines, you are fine – there is nothing to worry about and no good reason to panic. And an even less good reason to spread panic further down your supply chain! In this arena, the only ones who ought to be worrying are those cutting corners in their extraction and formulation process. This could look like a low-quality CBD extraction being used in products and a company that does not invoke independent third party laboratory testing, either because they simply don’t want to pay for it or because they have something to hide which would be revealed in the results.
So instead of viewing the need for this certification as a challenge, the industry should take it as a great opportunity to evolve and promote greater transparency amongst each other and a wider potential customer base. Like any new industry, the CBD market and those working in and around it, will need to stay on top of the latest education and political opinions as well as regulatory and legal requirements.
Stuart McKenzie, our Reakiro CEO, puts it quite simply:
“In my opinion, greater transparency to protect and educate the consumer will only be positive for the industry and allow it to truly flourish. The European CBD market is predicted to grow 400% in the next four years. Timing is everything and the time is now!”Stuart McKenzie
If you’re a CBD manufacturer or supplier, this is your opportunity to remain calm and act like a leader. Promoting transparency along your supply chain, and communicating fully with white label, private label and wholesale customers about this piece of legislation and how this affects the company and sales of products will build a healthier trusting relationship and consequently a healthier business.
Working in the world of CBD in the European Union, you may often hear the term ‘novel food’ being used. Or perhaps you’ve never heard of this term, in which case reading this guide and article is essential. You may have wondered how CBD is classified, of course we know it’s a great plant-based supplement, but in terms of bureaucracy and paperwork – how is it officially referred to? It’s not a medical-grade drug, it’s not food or drink, and it’s not a chemical. In the EU there is a category known as ‘Novel Food’ and this is where CBD falls. We’re going to take a look into what it means to have novel food status, how to acquire it, and how this affects the production and sales of CBD for manufacturers and partners.
The term Novel Food is classified by the European Commission as a way of defining food “that has not been consumed to a significant degree by humans in the EU before 15 May 1997,” which is when the first regulation on novel food came into action. This could be a newly developed food product, food produced using innovative technology, or even a food that is traditionally eaten in other parts of the world but not to a significant extent in the European Union. According to the Novel Food Catalogue (which lists products that have been classified as novel foods), a novel food can be of plant, animal, or another origin – essentially it could be anything consumable!
While the Novel Food Catalogue itself does not have explicit legal powers or status, it is used by the European Commission to inform decisions about new novel foods and the legislation on novel foods on the market. To put this into the context of CBD, CBD extract and isolate products have been legally classified as novel foods. This classification is an overarching umbrella for CBD in the European Union, it is then the individual decision of the member countries to legislate and regulate CBD within the realm of novel food. If you plan on doing business with other countries in the EU, be sure to check whether they have their own rules in terms of novel food legislation.
Obviously, everything right now that concerns the UK, the EU, and any kind of shared legislation – is causing a bit of a paperwork headache. Although the UK has officially left the EU, and we are currently in the transition period, the European Commission’s ruling on novel food status for CBD products will stand in place. However, this does not mean that businesses will continue as usual without any changes, all manufacturers and producers of CBD products are required to complete a Novel Foods application by the end of this month, 31 March.
Applications for novel food status are not granted one per company or manufacturer, but rather each product. For example, if a company was selling CBD oil, CBD capsules, and CBD gummies – they would be required to complete three separate applications. Meanwhile, if there were four different flavours of gummy, this would only require one certificate/one application as they are manufactured in the same way.
In order to help our wholesale, private label, and white label partners to the best of our ability, Reakiro has joined the European Industrial Hemp Association’s (EIHA) Novel Food Consortium application. If you recall, previously we mentioned that a certificate was needed per product, but then that certificate would apply for all products manufactured in the same way.
The EIHA has formed a separate company – GmbH – which is responsible for managing members’ novel food applications and authorisation processes. This consortium is effective in ensuring that similar products on the market can benefit from the same application, therefore minimising the time and paperwork that individual companies have to spend to get the right certification.
CBD content in its final formulation can be up to 10% while the THC (tetrahydrocannabinol) must read below 0.2%
The EIHA have stated that in order to cover their members across the whole European market, including the UK, they “will submit two NF applications: one to the UK Food Safety Authority (FSA) for the British market, and the other to EFSA for the EU market.”
The EIHA will be issuing sublicenses to EIHA members and their partners in the consortium, and these sublicenses must be purchased in the next few weeks. There will be a more expensive licensing system for non-EIHA members.
After the consortium of EIHA members has been granted authorisation, the sublicenses which have been previously acquired can be activated. The sublicence acquirer (the CBD producer who is both an EIHA member and consortium partner) must handle these sublicenses.
Applications for novel food licenses can take a significant amount of time to process and ultimately be approved, and this long time frame also applies to sublicenses. It’s vital that you speak to your supplier as soon as possible about your novel food status. Without the correct licensing and certification there is a sizeable risk that your CBD products could be removed from shelves in the UK and across the European Union.
The team at Reakiro are specialised in the area of novel food licences and certifications for white label, private label, and wholesale partners. Please do not hesitate to get in touch today so that we can discuss the next steps.
Getting into the cannabis industry has never been a hotter topic than it is now. From sports stars to wellness enthusiasts, everyone wants a piece of this industry. And who can blame them? In the past decade, cannabis has undergone a transformation in the public eye, and much of this is thanks to the rise of CBD (cannabidiol). The CBD industry is predicted to be valued at $20 billion by 2024, and with the rising interest in health, wellness, and natural alternatives – this figure is only looking to rise.
However, like all good things in life, breaking into the cannabis industry entails hard work, dedication, and the right knowledge.
This is a crucial place to begin. Although public education on cannabis has improved massively in recent years, there is still some way to go. Initially, when you tell people you work with cannabis you may be at the receiving end of some inquisitive faces or some pushback. You will find yourself explaining that no, you are not a drug dealer, and neither are you a massive stoner.
The cannabis plant family reaches far and wide, and hemp and marijuana are just two types of cannabis. But although they belong to the same family, there are crucial differences in their chemical compositions and consequent effects.
Plants from the cannabis family have an effect on the human body due to compounds known as cannabinoids, or more specifically when they originate in a plant, phytocannabinoids. Marijuana has a particularly high amount of the phytocannabinoid THC (tetrahydrocannabinol). This compound is wholly responsible for the psychoactive effects of marijuana, the feelings associated with being ‘high’.
Meanwhile, hemp – the plant from which CBD is extracted – has minimal THC content. The strains of hemp which are cultivated in order to produce CBD are chosen due to the high amount of CBD, and the low amount of THC. In fact, it is a legal requirement for all CBD products to have a THC content of less than 0.2%, so you will never experience any mind-altering effects as a result of taking CBD.
So if it’s not mind-altering, how does CBD interact with the body? Good question! Inside all of us, there is a system, made up of sets of receptors, called the endocannabinoid system (or the ECS). This is how all cannabinoids and phytocannabinoids take effect within us. When CBD meets these receptors it signals in a number of ways, including controlling the release of certain hormones which affects the way we experience stress and pain. Additionally, CBD has anti-inflammatory and antioxidant properties.
One of the many incredible things about being a part of the cannabis industry is the diversity of the demographic. CBD has many effects and can be formulated and marketed towards different needs and requirements.
Let’s take a look at some of the uses of CBD:
First of all, we should acknowledge how amazing it is that one natural chemical compound can do all of these things. But it’s also crucial to recognise that the same product will not suffice for multiple uses. For example, while a CBD facial cream will help calm down products, you probably would not be keen to try and use that to boost your immune system. Depending on the issue you are trying to address, it’s so important to pick the right product form.
Luckily, CBD is a very versatile ingredient. On the market today you can find it in essentially every form: as an oil, a vape juice, face cream, skin cream, massage oils, in food and drinks, in capsules, and as a spray – amongst many other creative innovations. Once you have decided which issues you want to concentrate on with your CBD business, find the product form which best matches your target audience’s wants and needs. For example, if you want to help those with arthritis you won’t be producing a flavoured CBD vape juice for them, and if you want to help athletes, they probably won’t be looking for a facial cream.
While we are celebrating the success and boom of the cannabis industry (which is ongoing), in many ways this sudden expansive growth is a double-edged sword. Owing to the fact that the legality of CBD based products can differ not only from country to country but actually from state to state, this makes it incredibly difficult for there to be one established regulatory body.
The cannabis industry is one of the fastest-growing markets in the world, yet this lack of regulation has given way to the emergence of low-grade companies who wish to cash in quickly on something they view as a trend. Consequently (and unfortunately), this means that there are a fair amount of products on the market that arent what they claim to be, either in quality or in CBD content. This can make people mistrusting, and can also give CBD a bad name if customers feel like they have bought an ineffective product.
You need to ensure that you are within the regulations of your country or state when setting up a CBD business. This for example could be a lower limit of THC content allowed or a limitation on the types or amount of products you can sell. And after having established that you are within your legal rights, you will need to establish your business as legitimate among the competition; we will look into how this can be done in the next two tips so stay with us.
In the same way that the legality of CBD products can vary from country to country, and state to state, so do the limitations on how you can advertise a cannabis product. Establish what you can and can’t do before you set out to do anything. The limits can mean that sometimes you can promote your brand but not the product, you may have more freedom online or in print, and any medical claims will need to be handled extremely sensitively – or avoided. A popular method of promotion for many cannabis businesses is through collaborations, this could be with influencers, other brands, or initiatives. For expert guidance in the area, we would suggest that you find a partnership with an established CBD manufacturer to guide you through.
Hopefully, you haven’t been daunted by any of the prospects in this guide because after all, the hard work that is put into entering the cannabis industry is rewarded ten times back. But why go into something blind, when someone who knows the way could share a map and show you the way?
By partnering with an established player in the CBD industry you can gain a wealth of knowledge, which will save you time and money. But this is not all, by finding an established partner who offers either CBD wholesale, CBD white-label, or CBD private-label services, you could start your journey at least 20 steps ahead. This kind of partnership is beneficial for newcomers in multiple ways.
First, you have the assurance that you are using a quality product from seed to shelf without having to do the work or investment required to cultivate hemp or extract CBD.
Second, you can already see how the market reacts to these products and how effective they are.
And finally, you will have a partner to mentor you through the high strung hoops which make up the CBD industry, from branding and marketing to regulatory advice.
There are a few more than five things that you will need to consider prior to entering the cannabis industry, but this is a solid jumping-off point. Establish an understanding of the natural compound (that being the CBD) you’re going to be working with and bringing into people’s lives, ask yourself what this product is going to do for your customers and how you’re going to bring it to them, and never be shy to find a partnership with a company already in the industry. Know your product, know your market, and know how you wish to move forward.
Reakiro offers CBD Wholesale, CBD White-label, and CBD private-label services with our premium grade CBD which is grown under EU regulation. If there’s anything you want to discuss from our services to beginning your journey into the cannabis industry (and everything in between) do not hesitate to get in touch with a friendly member of our team.
CBD (cannabidiol) started to shoot up in popularity around five years ago. Until then, the cannabis-derived (cannabis sativa) compound was not associated with the health and wellness industry, but rather people assumed it had similar qualities to cannabis (cannabis indica) that is used recreationally and associated with mind-altering effects.
But as indicated through the two different names, cannabis sativa and cannabis indica, these are two different types of plants, and consequently two different end products. CBD is a compound, also known as a phytocannabinoid, which interacts with our bodies through a diverse set of receptors, present in the nervous system and immune system. Studies have found that when CBD communicates with these receptors, it can affect the process and regulation of many hormonal and chemical processes and responses in our body. This is why CBD is used for a wide variety of conditions, including pain management, muscle recovery, relaxation from stress and anxiety, and skin treatments.
CBD products have permeated an eclectic and impressive number of sectors in their rise to prominence. The medical world is constantly researching how this compound could be used to treat illnesses such as epilepsy, arthritis, and Parkinson’s. The sports world has adopted CBD as a natural alternative for pain management, as well as a way to manage performance nerves and fine-tune focus and attention. The cosmetics industry has clocked on to the natural anti-inflammatory and antioxidant properties of CBD, making it the ultimate skincare ingredient. And last (in this list, which is certainly not exhaustive) the food and drinks industry has been formulating all kinds of products for people to get a good boost from this natural supplement.
Owing to the fact that CBD is beneficial across such a wide range of sectors, it is not surprising that not only new CBD companies are springing up, but also that existing companies are expanding their business to incorporate CBD. In light of the industry’s growth, in 2019 Forbes predicted that the market could reach $20 billion by 2024, and a year on this summer the publication proclaimed that CBD is here to stay.
One of the biggest issues within the CBD industry is the wild nature of the unregulated market. The speed at which the industry went from largely unknown, to CBD products being seen on every high street, has meant that the growth beat people’s ability to educate themselves on how CBD can be and should be produced and used. Consequently, this has left space in the market for low-grade operations who do not care to produce high-quality hemp-based products. These companies simply wish to cash in on something they believe to be ‘a trend’ and will sell ineffective and misleading products to both businesses and consumers.
All CBD consumers and honest vendors find this side of the industry incredibly frustrating. Particularly when they are a business that wishes to bring hemp into people’s lives to improve their wellbeing while educating about the plant’s potentials (separating it from the ideas and notions attached to marijuana).
As a business looking to expand into the CBD industry, there are a couple of things that you want to take care of in the best way possible to ensure that your venture is meaningful and successful. Both of these ultimately can be taken care of with a white-label solution (which we will visit in due course).
You need to ask yourself, and your team, why do you want to bring more CBD products into the market. What will your brand of CBD do differently, and who could it reach? As mentioned previously, the uses of CBD extract spreads across industries from food to skincare. And although one plant can do it all, you will probably not be able to cover all bases when starting out. When you know who your audience is, you can start shaping your product identity. But this isn’t a journey you need to go on alone …
Entering the CBD industry can be a daunting, not to mention expensive, task. To do it all alone, you would need to establish hemp cultivation, an extraction facility, and the expertise needed to extract the compound properly. And even then, you may have a product which is not proven to be good just yet, and you would still be lacking a lot of knowledge about how the market works.
If this is the first time you’ve heard about or considered a white-label solution, let’s take a look at what exactly this entails.
A white-label CBD partnership would allow your business to team up with an established manufacturer who has had plenty of experience in the industry. Essentially you would be able to use their product models and formulations (for example CBD oil, CBD spray, CBD skincare) but with your own branding, so that it fits in with an existing range, or you can launch something entirely new. As the established manufacturer would be taking care of the cultivation, extraction, and formulation of the CBD product – as a business you are able to enjoy the end result without the heavy lifting!
Here’s what we offer, and what we can do with and for you, in order to help launch a successful range of CBD products:
Starting from the beginning to the CBD lifecycle, and at the beginning of Reakiro’s life as an established company, a lot of care and attention was dedicated to laying the foundation. That is to say, before going to market, Reakiro spent two years researching the best strains of hemp for CBD extract as well as finding the most arable fields for the cultivation of the plant. In the end we settled on two locations in Europe: Spain and Lithuania. All of our fields are compliant with strict EU regulations.
So we have some superbly grown hemp, full of all the cannabinoids and terpenes which will bring all the health and wellness benefits we’re after – but this is only just the start! Of course, in it’s raw form you cannot sell a hemp plant as CBD. In order to make it accessible we need to undergo the extraction process. In our extraction facilities we have employed the knowledge of extraction experts as well as innovative technology. To set this up is neither a cheap nor straight-forward task, which is one of the reasons why it is highly advisable to use a white-label solution when joining the CBD industry.
We claim that our extraction facility is far above the rest, and earlier we warned of low-grade operations. But what separates the men from the boys? How can we prove to people that our extract is in fact of superior quality? The answer: third party independent laboratory testing. Again, undergoing this process is not a low expense, so when a company can display test certificates it’s a sign that their operation is to be trusted. The test results (which are carried out for every batch of our extract) report the potency of the extract, the presence and amount of differing cannabinoids, terpenes, and flavonoids – as well as checking the purity of the extract and confirmation that there are no contaminants such as pesticides of heavy metals.
Thanks to the white-label solution, we will have taken care of the last three steps for you. Now you will have an almost final form of your CBD product (whether it’s oil, capsules, skin care, or another form) and you can market it in the optimal way for your business. Obviously, no one knows your business and brand identity better than you, but at Reakiro we have CBD market expertise which we want to share. By partnering up we can work together to create and market your CBD range in the best way possible.
If you’re looking to move into the CBD market with your business, we highly recommend looking into a white-label solution. The CBD market is such an exciting and evolving place to be right now, and the bigger it grows the more everyone is learning about the positive wellness benefits of this natural plant-based compound. From professional athletes to medical researchers, so many people’s lives are being touched by CBD. However, all this excitement doesn’t come without its drawbacks. As a consumer and a vendor, you need to be aware of low-grade operations who are not honest to the trade and are selling an ineffective ‘CBD extract’. To bring a high quality product to market, with minimal stress and maximum yield, partner up with a trusted CBD manufacturer who will guide you through the process quickly and smoothly. Before you know it, your own business will be the sought after place to buy CBD.
We are not looking for customers, we’re searching for partners. Working with REAKIRO offers you:
• Access To Industry Leading Research
• A Team Of World Class Professionals
• Dedicated Design Team & White Label Manufacturing
• Best In Class Marketing & Merchandising
• Industry Leading CBD Products & Formulations
CBD Öl produkte – https://reakiro.de
REAKIRO POLAND Sp. z o.o.
No. REGON: 369280373,
Address: JANA KILINSKIEGO, nr 2, 35-005 Rzeszow, Poland