Category Management | CBD
of what these highermilligram delta-8 gummies and these vape products can do.” Of course, some states have banned or restricted delta-8 sales, and potential FDA regulation is looming. “I absolutely think regulatory adjustments or addressing of delta-8 could impact that market,” said Schau. “That probably is the biggest risk to delta-8 sales. Although, they’ve been allowed to go on for quite some time now. It’s not really clear how long Source: Brightfield Group, “US CBD Market Industry Update, October 2021” that’ll continue or if it’s going to go unhindered.” “It’s a bit of a gray area,” said Brightfield Group’s For now, Gancedo is catering to customer deSchau. “But I would say, generally, (delta-8 and mand for delta-8, until rules and regulations require CBD) are competitors.” retailers to change course. The convenience channel in particular has expe“We’re trying to sell as much as we can right rienced significant disruption of CBD sales thanks now, and then we’ll transition to whatever the next to delta-8. big thing is,” Gancedo said. “That’s what we have “Oh, it’s transitioned from CBD to delta-8, to do here in the conveniece store industry.” CSD 100%,” Gancedo confirmed. “We went from selling, let’s say, $40,000 (a week) on CBD, and that’s just all transitioned to delta-8. It’s the same consumer, just transitioning.” The good news is that sales keep growing as more and more customers learn about delta-8, • CBD sales in the c-store channel are set mostly through word of mouth. to hit $171 million in 2021 — up 49% “You can see the sales picking up week after from 2020, per Brightfield Group. week after week. So you know the people who are buying it are talking and telling people, and they’re • Retailers are seeing success with delta-8, telling people, and so on and so on,” Gancedo but the product is at risk of federal and said. “What we’ve learned and what we’ve seen is, the higher the milligram, the higher the potency, state regulation. the more it sells — regardless of the price, too. … We’re changing up the whole entire lineup within a two-month period because we see the potential
fast facts:
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CSTORE DECISIONS •
December 2021
cstoredecisions.com
