Canopy Growth Corp. and Martha Stewart are starting their joint bid to break into the CBD market, betting that curated flavors and her celebrity name will bring the ingredient to a new demographic.
As the stigma around Cannabis starts to diminish the popularity of CBD has dramatically increased over the last 3 years. CBD companies promote it as a natural way to alleviate our anxieties and pain without the “stoned” you may get from cannabis. There are currently around 3,000 brands in a market that some executives and industry experts are predicting the market will reach $10 billion in annual sales in the U.S. by 2023.
What CBD Products Will Be Available?
From September 10th Martha Stewarts brand of Gummies are available. The Gummies are available in a range of flavors such as kumquat & huckleberry, along with soft gels and oil drops, on its website.
The Cannabis derived products were developed with Stewart’s input on marketing and taste – she sees the products as comparable to French dessert “rather than the sticky, overly sweet versions you might find elsewhere.” The launch comes as her brand is being revived by consumers looking to improve their quality of life in quarantine.
“I’ve found that CBD supplements are a simple way to enhance my own health and wellness, especially when it comes to managing the stresses of daily life,”.Martha Stewart
Klein said in an interview that the timing is good. The product is “coming into the marketplace now when there are high stress levels,” referring to the current COVID-19 pandemic.
While consumers may indeed be looking for new ways to alleviate their nerves amid this year’s historic upheaval, one expert says it will be challenging to stand out in such a noisy market.
At the same time, CBD sales growth has slowed to 14% this year after jumping 562% in 2019. An oversupply of hemp in 2019 has also pushed the average product price down by 20% to 40%, Gomez said.
Nonetheless, a celebrity could make the difference for Canopy. “Adding a name like Martha Stewart may potentially entice more people to come into the space,” Gomez said.
Stewart, 79, currently serves as chief creative officer for Marquee Brands LLC, an investment firm that owns her brand name and other consumer companies, including sportswear retailer Dakine. She also remains on the board of Sequential Brands Group Inc., which licenses apparel and home-goods brands and sold the Martha Stewart brand to Marquee as part of a $175 million deal last year.
Canopy says there’s still plenty of potential for CBD growth, estimating that while around 86% of Americans have heard of the product but only 18% of Americans have tried it. Martha has a household name, meanwhile, should help attract female consumers in the age range of 46 to 65.
Will There Be CBD For Pets?
Yes! Canopy will add a Stewart-branded line of CBD products for pets later this year, industry experts see this segment reaching as much as $600 million in additional annual sales.
What’s Next For Martha Stewart?
Beyond the human and pet lines she’s developing with Canopy, Stewart says she plans to launch a CBD skincare line called 86 Elm in a separate partnership with a yet-to-be-named dermatologist.
The biggest current celebrity with a CBD product so far is NFL star Rob Gronkowski, who is partnered with CBDMedic. Charlotte’s Web, which purchased the parent company of CBDMedic earlier this year, is the top selling CBD brand, followed by Medterra and Green Roads, according to Brightfield data.
Disclaimer: This is not a sponsored article.