With the CBD pet industry expected to be worth $1.16 USD billion by 2022, now is as good a time as any for Charlotte’s Web Holdings (CSE:CWEB) (OTCQX:CWBHF) to announce a new line of CBD-infused dog treats. But Charlotte’s Web stock has reacted by dropping 2.24%.
Currently trading for $18.75 USD on the OTC in America, is the lull attributable to the news? Or perhaps this is the result of a market-wide lull?
Charlotte’s Web Stock
In a press release announced yesterday, Charlotte’s Web Holdings spoke of its 12 new products that include chewable items, oils, and a topical balm.
With shares reaching highs of $21 and lows of $18.50 on more than one occasion, April was a volatile month for CWBHF stock. In fact, it was the most volatile month in 2019 thus far.
Approval and Safety
With approval from the National Animal Supplement Council (NASC), Charlotte’s Web’s products are deemed safe for animal consumption.
Further, Charlotte’s Web Holdings CEO, Hess Moallem, said that every product goes through over 20 tests during production as part of the standard procedure.
According to Kelsey Morrison, associate director of product development with the firm:
“We applied a thoughtful, scientific approach to animal health, expanding from our single oil extract offering to 12 SKUs enhanced with additional botanicals to support your dog’s mind, body, and soul.”
The products themselves are all CBD-infused and aim to help in three different areas: calming, joint and hip pain, and focus.
Is Charlotte’s Web Stock a Play?
The marijuana industry has evolved, and regulation has allowed for the inclusion of pet-focused products. As such, this arm of the industry is a potentially lucrative play for investors. Independent researchers, Brightfield Group, confirmed that sales of CBD pet products in the US rose to $32 million USD last year.
With the nascent industry only getting started, and with the updated Farm Bill only passed at the end of 2018 (legalizing hemp-farming and allowing for the industrialization of hemp-derived CBD), it’s very likely that sales will rise significantly year-over-year.
Charlotte’s Web Stock is Not Alone
Other major industry names also see the potential in this specialized area for CBD. In May, Canopy Growth (TSX:WEED) (NYSE:CGC) announced a partnership with Martha Stewart to launch its line of hemp-derived CBD products for pets.
Further, in March, True Leaf Medicine International (OTCQX:TRLFF) announced an increased distribution for its pet products. The company now aims to have products in 3,500 stores worldwide alongside its partnership with retailer Pet Planet.
What are your thoughts on CBD-infused pet treats? Is this an area investors should keep an eye on? Will you be investing in Charlotte’s Web stock?
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