CBD products offer opportunities to reach busy shoppers who are look- ing to de-stress and relax. The top five medical conditions reported by c-store and gas station CBD consum- ers are anxiety (55% of respondents), depression (40%), insomnia (29%), chronic pain (24%) and PTSD (18%), according to Brightfield Group’s consumer insights. Two of the top desired product effects among c- store CBD users are relaxation (86% of respondents) and athletic (69%).
CBD in the form of drinks, tinctures and topicals present growth opportunities in the c-store channel.
CBD drinks offer multiple positioning opportunities as they can address consumer desires for relaxation, sleep enhancement, athletic endurance and recovery, as well as an after- noon pick-me-up and as a substitute or supplement to alcoholic beverages. Tinctures can be marketed to consumers looking for daily anxiety relief, while topicals like CBD balms and roll-ons can be targeted toward individuals seeking to relieve chronic or post-workout pain.
Among CBD product types, c-store CBD consumers are very open to edibles. Some 69% of c-store CBD buyers use edibles such as drinks and gummies. Young men comprise the majority of c-store CBD consumers, with 57% of c-store and gas station CBD buyers being male, and 42% between the ages of 26-35. Among c-store CBD consumers, 40% are single, and 40% are heavy users (who use CBD five or more days per week).
Tinctures, also called CBD oil, via c-stores are worth $17 million and reach a broad consumer base as the most popular CBD format. By selling smaller-sized bottles of tinctures at under $30, c-stores can reach tincture users — 50% of whom use the format five or more times per week. Topicals, worth $15 million through c-stores, offers a way for c-store operators to sell CBD products without worrying about the FDA’s restrictions on the sale of ingestible CBD. Products such as CBD sticks and CBD lip balms provide a low-priced, easily trans- portable way to try CBD.
New innovations in CBD drinks ranging from sparkling waters to ready-to-drink (RTD) teas to sports drinks and sleep shots offer c-store shoppers a familiar way to try CBD.
CBD drinks, valued at $52 million in c-store sales in 2019, are highly popular among new consumers and skew younger, with millennials as the largest consumer group. Demand for CBD-infused drinks remains high despite the Food and Drug Administration (FDA) stating that CBD cannot be sold as a dietary supplement or used as a food additive.
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The two have partnered to bring Harvest Health’s “popular Colors, CBx Essentials and Harvest-branded CBD product lines to more than 10,000 retail stores, including convenience stores and gas stations across the country.” The partnership will enable advanced distribution for Harvest-owned brands.
Jason Vedadi, the chairman of Harvest Health, stated in the press release, “This exclusive partnership enables a massive advance in distribution for Harvest-owned CBD brands and follows our strategic path of expanding the scale of our wholesale and retail distribution nationally. Demand for CBD is unprecedented and by delivering leading products in 10,000 accessible locations gives us an unparalleled reach to consumers.”
Paul Rock, the a trustee of the AAC Board of Directors, also shared in the press release, “While many CBD product companies currently experience an artificially high premium as early adopters flood the market, we realized that only true quality brands like Harvest’s COLORS and CBx brands, which have a long and established pedigree will be around after the first wave. Massive categories like energy products were built primarily in our retail channel and we expect Harvest’s line of CBD products to be no different.”
Further, the partnership will also include training for store clerks and associates, and an educational campaign concerning CBD and cannabinoids. The full press release is available here.
The Asian American Trade Association Council (AATAC) and Harvest Health issued a press release on Business Wire. The AATAC is a national association that features small buying groups, regional sub-chapters, and other trade organizations. Collectively, it has 90,000 locations around the country. Harvest Health is described in the release as a “vertically-integrated cannabis company with one of the largest and deepest footprints in the U.S.”
CBD is becoming increasingly population as more stores start selling it. A few major retailers are either planning to sell or are already selling the substance, including Walgreens, Rite Aid, Ulta Beauty, and GNC Holdings. It appears that a few other major stores are taking advantage of the CBD craze. Reportedly, CBD will also be sold at major gas station convenience stores as well.