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Dutch – UK consumer goods giant Unilever has thrown its hat in the ring of the burgeoning CBD sector. The company is rolling out a new line of CBD-infused deodorants as it looks to achieve a piece of the $16 billion (by 2025) CBD-hemp pie.
The company’s subsidiary Schmidt’s Naturals is rolling out Sativa oil deodorants in retailers including Target this Autumn, with a line of CBD offerings to follow shortly after, according to Michael Cammarata, Schmidt’s Naturals CEO and co-founder.
The deodorants containing hemp, or cannabis sativa oil, are expected to hit stores in September, starting with Target and then rolling out to other retailers.
The CBD-infused deodorants will follow shortly after, in both brick-and-mortar stores and online, Michael Cammarata, Schmidt’s Naturals co-founder and CEO told Business Insider. “The CBD line will follow once we make sure the i’s are dotted and the t’s are crossed,” said Cammarata. “Which could be very fast — it’s going to be a quick move.”
Since the Farm Act passed last year, many felt the green wave’s time had arrived, but regulatory challenges remain. Health departments in some states, including New York, have forced retailers and restaurants to pull CBD infused food products with off their shelves, citing a lack of clarity around the compound at the federal level.
Having the legal backing of Unilever is crucial to Schmidt’s Naturals in figuring out how to market CBD products while staying onside of the shifting regulations.
“You have to really be on your game here,” said Cammarata. “And it’s great having the resources of Unilever’s legal team to come up with a plan that works at both the state and the federal level.” Part of the challenge with CBD, said Cammarata, is figuring out how to build a quality supply chain that’s both legal and scalable.
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“Getting the highest quality CBD has probably been the longest part of this journey,” said Cammarata. Part of the challenge is with adapting the CBD supply chain to work with certain retailers to ensure that no federal or state laws are broken.
“This means unprecedented attention to detail which can be as keen as routing delivery trucks through certain states that may have more permissible policies on CBD”, said Cammarata. As well, it’s also a challenge to find a legal supply of CBD that doesn’t violate any laws.
Despite the challenges with producing and marketing CBD products, companies that do take the initiative to invest in the sector could potentially earn themselves a large market share over their competitors. “Once we start making these moves, I wouldn’t be surprised if you see a series of other traditional Unilever brands start doing those as well,” said Cammarata.