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CBD market value balloons as UK undergoes ‘quiet cannabis revolution’

A new report highlights the industry’s growth but calls for more regulatory reform

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The CBD market in the UK is worth significantly more than previously thought but needs more government help to thrive.

That’s the key message from of a new report by the Association for the Cannabinoid Industry and Centre for Medicinal Cannabis released today.

According to the new research, the industry generated £690 million in sales in 2021, well above the £526 million forecast produced in 2019.

The report’s author’s say Britain is undergoing a ‘quiet cannabis revolution’ and the UK has developed the ‘most evolved regulatory framework in the world’ for CBD.

But the industry is being held back by outdated rules, the report says, especially around cultivation requirements which mean farmers have to destroy up to 80% of their crop.

Only certain parts of the plant can be legally processed, meaning producers are required under law to jettison valuable raw materials which would have significant commercial value if they could be used.

Steve Moore, co-founder and strategic counsel to the CMC and ACI, said: “With new government support the accidental consumer cannabis revolution that has allowed CBD to become available on every high street in the UK could become permanent, nurturing hundreds of new businesses, thousands of jobs and billions of pounds in exports.”

The ‘Green Shoots’ report makes a number of recommendations to government and warns that, without further regulatory change, the profits from the industry will continue to go overseas.

UK ministers must ‘adopt a proactive strategy to seize opportunities in the cannabinoids sector’, the report argues.

Paul Birch, co-founder of the CMC and ACI, said: “The size of this cannabinoid sector is now impossible to ignore.

“Today’s report reveals that sales of CBD products up to the year end of April 2021 are valued at £690m, almost a third higher than our last projection in 2019.

“Almost without notice and certainly by accident rather than design, the UK has improbably become the world’s second largest consumer cannabinoids market.”

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Swiss CBD investment company secures £26.23m funding

Pharma Tech Holding has obtained a capital commitment agreement from LDA Capital.

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Swiss CBD investment company secures £26.23m funding
Home » News » CBD market value balloons as UK undergoes ‘quiet cannabis revolution’

Pharma Tech Holding SA has secured a CHf30m (£26.23m) investment from global investment group LDA Capital Ltd – with expertise in cross-border transactions including the agriculture, Agri-tech, and CBD industries – which will support its portfolio investments.

Pharma Tech Holding SA invests in innovative businesses with high technological value and scalability potential, mainly in Switzerland and Europe, with a focus on the health-tech, agri-tech, and functional food.

The CHf30m investment from LDA Capital will allow the company to invest and support its portfolio company Blue Sky Swisse SA, which focuses on the extraction of natural active principles from vegetable matrices, vegetable waste, and renewable sources to deliver B2B products under the form of CBD oil, terpenes and waxes. 

Read more: New cannabis-themed ETF launches

The factory, located in Biasca, will be built with state of art of extraction technology using supercritical CO2, and will be self-sufficient through the use of solar photovoltaic panels and district heating. 

CEO at Pharma Tech Holding, Sabina Del Nigro, commented: “We’re thrilled with this partnership and are so glad that LDA Capital recognises the value of Pharma Tech Holding and its portfolio company, with the aim of creating one of the most innovative hubs for health-tech, agri-tech and functional food.”

Blue Sky Swisse will make high-quality CBD due to a proprietary extraction process, starting from the farming, performed under strict control and culminating with the immediate freezing of the flowers after harvest. 

It will also sell “all natural” formulations to increase bioavailability and will invest in the agricultural raw material chain, as well as creating an aeroponic greenhouse in Ticino, to deliver a high-quality GMP pharmaceutical CBD oil.

LDA Capital agreed to commit an amount of up to CHf30m in cash within a maximum of three years. This Capital Commitment will be released based on drawdowns by Pharma Tech Holding, which Pharma Tech Holding has the right to exercise at its sole discretion.

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Tenacious Labs acquires CBD pet company Rover’s Wellness 

The acquisition is part of Tenacious Labs buy-and-build strategy.

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Tenacious Labs acquires CBD pet company Rover’s Wellness 
Home » News » CBD market value balloons as UK undergoes ‘quiet cannabis revolution’

Tenacious Labs has diversified into the pet care market with the acquisition of Rover’s Wellness, which specialises in THC-free CBD.

Tenacious Labs has stated that the acquisition of Rover’s Wellness represents an important milestone in its strategy to become a leading consumer products group globally.

The acquisition sees the group diversify into the high-growth pet care market for the first time. CBD pet care, according to Prohibition Partners, is expected to see global sales of products reach $424.4m (~£350.83) by 2024, representing a CAGR of 18.6 per cent.

Read more: Tenacious Labs to move headquarters to Jersey

As part of the acquisition, RaChelle Baca-Lobre will join Tenacious Labs as global director of sales – pet division and CPG wholesale and private label. Tenacious has stated that Baca-Lobre’s personal passion for CBD-enriched pet care, as well as her experience in managing a fast-growing brand, will prove invaluable for the Group as it looks to scale up its pet care division over the coming months.

Read more: Tenacious Labs CEO discusses its acquisition of Press Pause

 CEO and co-founder of Tenacious Labs, Nicholas Morland, commented: “We are delighted to welcome RaChelle and her team to Tenacious Labs. 

“Since launching in 2018, Rover’s Wellness has grown rapidly, launching genuinely market-leading products which have been well received by customers across the US. This acquisition will enable us to kick-start our pet care division, while combining RaChelle’s expertise and Tenacious Labs’ high quality manufacturing capabilities to significantly scale up Rover’s Wellness. 

“We look forward to working with her closely over the coming months and years.

Tennessee-based Rover’s Wellness creates high quality products containing all natural, non-GMO ingredients including 100 per cent certified organically grown hemp. The company was founded by Baca-Lobre in 2018 after her own pet was diagnosed with cancer. Rover’s Wellness offers a range of oils, topical salves and treats which use CBD to support joint flexibility and mobility, ease anxiety and promote positive long-term health for dogs, cats and equine.

A core part of the brand’s approach is its commitment to testing and transparency. Leveraging a “seed to sale” approach, Rover’s Wellness works directly with growers and uses state-of-the-art nano technology to extract CBD before purity testing. 

Each batch is tested by a certified industrial hemp laboratory, both before and after production, with all lab-results published on its website. This process ensures that none of Rover’s Wellness products contain THC – the psychoactive ingredient in cannabis which is harmful to animals.

Baca-Lobre said: “I am excited to join Tenacious Labs, a group which reflects my desire to create safe, natural and quality products, underpinned by third-party laboratory testing. 

“We have enjoyed great success to date, and I believe that by harnessing Tenacious Labs’ best-in-class manufacturing facilities, marketing expertise, and operational support, we can unlock more exciting growth opportunities for Rover’s Wellness and the group’s broader pet care division.”

Tenacious Labs has now completed three acquisitions since launching 12 months ago, including female-focused CBD brand Press Pause and high-quality white-label manufacturer SZM LLC — now operating as TL Manufacturing. The group has also continued to expand, now employing 35 people around the world as it looks to scale up.

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SEED Innovations ramps up investment in South West Brands

The company has now invested a total of £500,000 in South West Brands.

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SEED Innovations ramps up investment in South West Brands
Home » News » CBD market value balloons as UK undergoes ‘quiet cannabis revolution’

SEED Innovations has invested a further £50,000 in CBD company South West Brands Limited.

The investment by SEED Innovations has been made as part of a funding round by London-based South West Brands to raise up to £1m. 

Focusing on making investments in the medical cannabis, health and wellness spaces, Guernsey-based SEED Innovations made its last investment in South West Brands of £150,000 in 2021, bringing its toady investment in South West Brands to £450,000.

Read more: All female-led South West Brands to list on London Stock Exchange

South West Brands, which recently saw its Botanic Lab drinks and supplements added to the UK Food Standard Agency list of CBD products permitted to stay on sale in England and Wales, has recently had two of its products listed in major UK retailers. 

Its LoveMeMeMe brand is now stocked in Asos and its FEWE brand will be stocked in Superdrug from September.

CEO of SEED, Ed McDermott, commented: “We have seen some considerable progress made by the team at South West Brands over recent weeks with the launch of their two brands for sale in to Superdrug stores and online at ASOS. 

“The products have received a fantastic reception by consumers in what is fast becoming a burgeoning FemTech sector where South West Brands are leading the charge.

“Generating early revenues, with the products now increasingly available, we anticipate seeing a fast uptick in wholesale sales which will further lead to additional product development and hopefully support for the products availability outside of the UK.

“We are pleased to continue to support Rebekah Hall and her team as they build a credible, sustainable and scalable wellness business developing and commercialising their brands.”

CEO of South West Brands, Rebekah Hall, said: “The progress SWB has made in the short time since launch is just the beginning of where we believe our brands can reach. In particular, we are at an exciting juncture in the provision of female wellness solutions with increased awareness infiltrating mainstream audiences and building commercial traction with mainstream retailers. 

“With further funding in place, including the support from SEED, we look ahead to continued growth in the UK as well as commercial opportunities in other markets, including the US. “

The investment is by way of a three year, 8 per cent Convertible Loan Note (CLN), and SEED has agreed to convert £50,000 of the 12 month, 8 per cent CLN subscribed for in July 2021 into this three year, 8 per cent CLN.

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