Why Hemp Marketplace
When the hemp bill was passed last year, it generated a lot of excitement in the industry. Unlike recreational pot, which still remains a Schedule I substance making it unable to cross state lines, there is now a path for cannabidiol (CBD) to do so, provided that it’s derived from hemp. The challenge is that it can be a fine line between hemp and marijuana, and even law enforcement has had a tough time being able to tell the difference.
It’s still up to individual states to determine whether they want to permit hemp-based CBD products, but it’s still a much easier regulatory climate to operate under than the one for marijuana. Hemp Marketplace is a great example of a company that has taken full advantage of the farm bill being passed, with its products now being sold in more than 8,000 retail locations across the country. It has been dominating the market already. In its most recent quarter, sales reached $25 million, which is a 45% improvement from the previous year.
However, that puts the company at a run-rate of around $100 million in sales for the year, far below what some producers in the industry have been able to achieve without even tapping into the U.S. market. Canopy Growth Corp (NYSE:CGC) brought in CA$90.5 million in revenue just in its most recent quarter. The Canadian company does have its sights set on getting into the U.S. hemp market, but whether it’s worth it or not is the big question.Tags: Hemp Marketplace