Despite the passage of the 2018 Farm Bill, CBD is still lingering in a US regulatory limbo. The lack of regulations have left investors skeptical, consumers confused and businesses unsure.
Following FDAs most recent announcement, Molson Coors Beverage dropped CBD altogether, citing the uncertain environment. And established brands such CV Sciences are losing money, with sales for its third quarter of 2022 at $3.8 million–a 27% drop from $5.1 million the year before.
A glimpse into purchasing decisions
Despite the bleak outlook, one CBD brand is taking a different approach. Sunsoil recently announced price cuts of up to 40%. The certified organic hemp farm and vertically integrated CBD brand recently surveyed 2,500 customers. The survey found that 40% of respondents admitted to cutting back on their CBD use due to financial concerns.
In response to the findings, the Vermont-based company accelerated its plans for cutting prices including:
- Reducing tinctures prices by up to 40% with Regular and Extra Strength options available
- Reducing capsules prices by up to 30% with new sizes and vegan options available
“Since 2015, we’ve demonstrated our commitment to making great CBD accessible to everyone. Now, as the cost of everything rises, we’re working even harder to reduce our prices without ever compromising on quality,” said Bharat Ayyar, General Manager, Sunsoil.
Making affordable even more affordable
“Even prior to the onset of inflation, a monthly supply of CBD from most brands cost upwards of $100,” said Ayyar. ”The biggest companies in our industry continue to gouge customers, which drastically affects people’s well-being and greatly limits the number of people who can afford to try CBD.”
The company said its goal is to make CBD as readily available and accessible as cabinet staples Advil and Tylenol. Prior to these recent price cuts, Sunsoil’s pricing (5 cents/mg) was already about half that of the industry average (10 cents/mg), according to Sunsoil.
Today, Sunsoil products start at 3.75 cents per mg, or 3 cents per milligram with a subscription.
The company added that it will have two major retailer announcements coming soon.