(This is an abridged version of a feature that appears in the February issue of Marijuana Business Magazine.)
Vertically integrated cannabis producer Stem Holdings is dedicated to organic production and high–quality standards—attributes the company plans to apply to its new ventures in the hemp industry.
Ellen Deutsch, Stem Holdings’ executive vice president and chief operating officer, says that that hemp and CBD companies must focus on developing brands that are sustainably produced with high-quality, consistent formulations that will gain trust among consumers. That attention to repeatable quality will go a long way to forging trust with regulators as well, Deutsch said.
We sat down with Deutsch, a 20-year veteran of brand building in the food industry, to get her insights on how hemp and CBD companies will fare as new regulations are introduced to the market as well as commonalities she sees with the food industry.
Ellen Deutsch
What was your reaction to the warning from the U.S. Food and Drug Administration (FDA) to both the industry and consumers that CBD is not generally recognized as safe (GRAS)?
That’s not unusual. It took them 14 years to approve (the natural sweetener) Stevia. So, to me, coming from the food and beverage sector, I respect that the FDA has to conduct its due diligence. Very often, the market will drive faster response times—both positive and negative—whether they’re introducing something to the market or pulling something off the market.
More of Deutsch’s predictions on the CBD market are available here.
