Hemp Coffee and Tea
Willie Nelson's CBD-infused coffee
By Dan Bolton
Major US drug store chains now sell CBD over the counter and large pharmaceutical companies have entered the CBD market, making it likely that medical research and clinical trials will result in sufficient high-quality evidence demonstrating its effectiveness in treating a range of symptoms.
The Food and Drug Administration is holding hearings on whether to classify CBD as an ingredient in foods and drink and possibly a regulated drug.
Willie Nelson, the famed performer, last year introduced a CBD (cannabidiol) infused coffee he calls “Willie’s Remedy” and this spring his wife Annie D’Angelo added a non-caffeinated CBD-infused hemp tea to her own edibles line of chocolates and lozenges. This is the first trickle of what is expected to be a surge of beverages and restaurant menu items following federal decriminalization of CBD in January.
Once the Texas Legislature legalized cultivation and production of industrial hemp, Nelson’s Austin, Tex.-based venture could, for the first time, formulate and transport products nationally so long as they are labeled dietary supplements.
The distinction between hemp and marijuana is critical. The new law defines hemp as cannabis plants that contain less than 0.3% THC (tetrahydrocannabinol). Plants that contain more remain illegal under federal law and in most states.
THC produces a psychotropic sensory response in the brain in small amounts, CBD engages entirely different receptors in the immune system, skin, liver, and bones. The CBD molecule reduces inflammation and is widely sought for pain relief. It does not make you “high.”
Decriminalization clears the way for research including human trials that are likely to demonstrate CBD’s effectiveness. Users readily attest to a range of health benefits that encourage major pharmaceutical firms to engage in meaningful research. The new law also permits universities and private ventures to isolate and purify the compound.
The FDA has yet to rule on whether CBD is a supplement or a food but it is beginning to appear on menus in packets consumers add to their hamburgers, shakes and even CBD bottled water. Bars in Florida charge customers $3 to $5 for a 16.5mg dose.
Joe Gagnon is the founder of Performance Tea, a brand launched in 2018 with a legacy dating to 2008. A decade of development gives Gagnon’s powdered CBD teas a head-start on what he calls “a natural gold rush.” Gagnon told World Tea Expo attendees that “sales are ablaze” thanks to consumer interest in natural products that reduce stress, ease chronic pain, aid sleep and assist with recovery.
Since March major grocery and pharmacy chains including CVS, Vitamin Shoppe, and the Walgreens Boots Alliance (1,500 stores in select states) have stocked their shelves with CBD products (typically oils, creams, sprays and transdermal patches to relax and de-stress). Supplements that do not claim therapeutic benefit do not have to undergo more stringent U.S. Food and Drug Administration (FDA) rules regulating drugs.
“The FDA requires a cannabis product (hemp-derived or otherwise) that is marketed with a claim of therapeutic benefit, or with any other disease claim, to be approved by the FDA for its intended use before it may be introduced into interstate commerce,” according to legislation that legalized hemp. FDA chief Scott Gottlieb said he is “disappointed” at the rush to market CBD since many issues remain unresolved, but retailers view CBD as a safe way to enter a market that will someday include cannabis.
In June the FDA began hearings to de-regulate CBD from hemp within food products. “Legalization of edible CBD from hemp would have a major impact on the U.S. consumer packaged goods (CPG) industry-particularly for the snack and confectionery category,” according to Nielsen market research.
Regulations governing the sales of CBD-infused edibles, including beverage tea, remain murky. CBD sales totaled $350 million in 2018. Market research by Nielsen conducted in March shows 34% of Americans were interested in consuming legal CBD/Cannabis for the Memorial Day holiday. Nielsen predicts the food and beverage share of hemp-derived CBD products will reach $6 billion in sales by 2025. Sales of beverages will account for $1.6 billion of this total with foods and stacks (including confectionery) accounting for $950 million in annual sales. Although currently, a small segment compared to powders, oils for vaping and supplements, Nielsen predicts CBD food and beverages will account for a 44% share of CBD sales years to come.
Full-spectrum CBD (which pairs the compound with one or more of the 100 cannabinoids in cannabis) is legal for medical use in 46 states. CBD derived from hemp (which has little or no psychoactive properties) is legal in all 50 states so long as concentrations of THC (tetrahydrocannabinol) remain below 0.3% Performance Tea is marketed as rejuvenating, or for recovery and sold in jars and single-use packets labeled “Balance” and “Energy” and “Focus.”
“The line between food and health is disappearing,” said Gagnon, citing an Accenture report on “The Future of Food: New Realities for the Industry,” “There is greater awareness of the link between nutrition, health, longevity, and sustainability. The shift is creating threats and huge opportunities for incumbents and start-ups alike across the food and healthcare industries,” according to Accenture. Gagnon said even if FDA “asserts its authority to clamp-down on CBD-related products and interstate commerce, it can choose not to do so.” “Enforcement action depends on, among other things, available resources and the perceived threat to public health,” he said.
Given the large numbers of consumers already exposed to CBD and a trend pointing to the legalization of cannabis, Gagnon expects his $49 jars to prevail. Consumer surveys show that 47% of the buying public is familiar with CBD and, of those who are familiar with CBD, 30% have purchased CBD. The rush is on, he said, with 65% of supplement companies planning to launch a CBD product in the next 1-2 years.
Market leaders will be natural, plant-based, super functional, made without sugar, convenient and good tasting, he said. Gagnon is an accomplished long-distance runner and has finished six Ironman Triathlons. He is the author of Living the High-Performance Life. Gagnon said he favors beverage formulations because of their convenience and effective delivery of the relatively large quantity of CBD needed for the chemical to be effective.
In January Vox reported, “The limited studies out there indicate that CBD has, in its various interactions with the brain and immune system, some anti-inflammatory and anti-anxiety effects.” The article explains CBD has low bioavailability (15%) when ingested, requiring doses of at least 300mg to reduce anxiety, for example. Too much, however, (1000mg in dosage trials) and it becomes less effective. Most CBD sold today delivers 25-100mg. Researchers note that vaporizing CBD is more efficient (25% bioavailability) than eating or drinking it. “From a medical perspective, it’s promising; recreationally, it’s interesting. But that doesn’t mean the stuff you’re buying works,” writes Vox.