CBD: Consumers Crave Science, Information
This article originally appeared on https://www.letstalkhemp.com/
By Steven Hoffman
Based on a comprehensive consumer survey published in 2020 of 4,000 U.S. consumers plus another 1,000 consumers in Canada, healthy lifestyles research firm Natural Marketing Institute (NMI) found that people are eager and interested in exploring the medicinal value of CBD.
According to NMI’s 2020 North American Cannabis Market Opportunities and Challenges Report, 18% of the U.S. adult population (46 million consumers) say they have personally used CBD products in the past six months.
“Consumers don’t know a lot and they want to learn more,” said Diane Ray, NMI’s Vice President of Strategic Innovation. “Right now, they’re getting information from articles online and family and friends. It doesn’t appear that a lot of authoritative sources are connecting with consumers to provide them with reliable information. It could also be that resistance from social media companies may be a factor in limiting information,” Ray observed.
“There’s an underlying desire to get healthier. People want to believe in the promise of CBD and they want to know how to tap into its benefits. However, the data indicates the industry isn’t educating enough. We see an influx of people experimenting and dabbling with CBD products – from dietary supplements and functional food and beverage to personal care – but that could flatten unless science comes into play more. The market is craving reliable science,” Ray said.
While an older generation in their 60s and 70s are turning to CBD products for pain management – in particular, CBD gummies are number one in terms of consumer choice, according to NMI data – Ray noted that a younger generation, including Millennials and the “i-gen” (the 18-25 age group) are among the most stressed, and they turn to CBD products for anxiety and relaxation.
“Consumers are slowly navigating the puzzle of dosage, quality, etc., to find out what products work for them and fit in their budget,” Ray said. “In the long term, they want to get it where they get everything else, but in the near term, they are looking for education and expertise, and for that they are going to specialty stores, including dedicated CBD stores, dispensaries, drugstores, the internet and natural food stores,” Ray noted.
Natural Marketing Institute identifies five consumer segments that are grouped along the lines of differentiated health attitudes, behavior and psychographics. They include:
Well Beings® – 26%
• Most health pro-active
• Leaders & influencers
• Most multi-cultural
Food Actives® – 14%
• Mainstream healthy
• Basics & balance
Magic Bullets® – 20%
• No healthy lifestyle commitment
• Managers vs. preventative
Fence Sitters® – 23%
• ‘Wannabe’ healthy
• Stressed, want control
• Multi-cultural segment
Eat, Drink & Be Merrys® – 17%
• Least health active
• Taste over health
For more information on the 2020 USA/Canada Whole Cannabis/Whole Health study, visit here.
Life After Manitoba Harvest: Mike Fata Celebrates 25 Years of a Personal and Entrepreneurial Journey to Health
This article originally appeared on LetsTalkHemp.com
By Steven Hoffman
Mike Fata, founder and former Chair and CEO of Manitoba Harvest – and one of the original founders of the hemp food industry – is celebrating the 25th anniversary this month marking the beginning of his personal journey to health.
In 1995, Mike was, as he said, “an unhealthy and unhappy 18 year old who weighed 300 pounds. I became sick and tired of being sick and tired, and decided to do something about it.”
Along the way, Mike learned a lot about nutrition, a healthy diet and an active lifestyle. He lost 125 pounds, regained his health, and … “the journey to health got me to see the value of hemp seed,” he said.
Inspired by the superfood potential hidden in the hemp seed, Fata in 1998 founded Manitoba Harvest. Today, the award-winning company is a widely recognized global hemp food leader, with lifetime sales in 2020 surpassing $500 million.
After successfully selling Manitoba Harvest in 2019 to Tilray (NASDAQ:TLRY), a publicly traded, vertically integrated cannabis company based in Canada, for US$318 million, Mike is no longer involved on a day to day basis with the company. “It came to the point where the business was going that it was best to have a classically trained CEO leading the company,” he observed.
Yet, having carved out a significant entrepreneurial legacy in hemp and the natural and organic foods industry, Mike has future plans to mentor and invest in companies and brands that are committed to improving health, the environment and the quality of people’s lives.
“My passion is health and my purpose is to share it with the world,” Fata said. “I’m starting to diversify and help other founders fulfill their mission in the natural products space. I’ve made a couple of investments and got involved on the board level, and am involved actively in a couple of businesses.” Mike cites, for example that he’s become involved with Om Organic Mushrooms, an emerging natural supplements brand.
Mike also is committed to helping the hemp industry and natural products industry grow in Canada. “Giving back has been a big part of my work for my whole career; I’ve done 25 years of nonprofit board work,” he shared. Currently, Fata serves as Chair of the Canadian Health Food Association (CHFA), and during his tenure, the organization has been supportive of removing restrictions on CBD sales in Canada.
Currently, there are no legal means to bring non-prescription CBD health products to the Canadian marketplace, said CHFA in a statement. However, the association this past month released a report identifying CBD products as an opportunity for economic recovery in Canada that could create a niche market valued at more than C$1 billion.
“CHFA has been very outspoken in favor of hemp and CBD in the last couple of years,” said Fata. “Currently, to buy CBD in Canada you have to go to a licensed dispensary. We’re trying to change it so natural food retailers in Canada can sell these products.”
In applying what he’s learned leading the growth of Manitoba Harvest, Fata said, “At the end of the day, if you have a great product and you put the right capital and great people together, good things can happen. However, he noted, “The hemp industry is missing strong strategy and planning because it’s still a new industry. Also, more innovation has to happen,” he advised.
Fata also believes that “extracts aren’t the cure all and end all for the hemp industry. People rushed in; it will take years to work out.”
However, Mike notes that there is huge potential for hemp food and hemp fiber. “There is tremendous value in the seed and the fiber 10 to 20 times over where the industry is now,” he said. “For now, we have hemp hearts, but we need more innovation. Look at the advancements in soy protein, pea protein, for example. “Hemp is just scratching the surface. We’re just getting started on being a superfood.”
While Mike admits he is currently under a noncompete agreement in the hemp market as a result of the sale of Manitoba Harvest to Tilray, “I am a super hemp consumer and am super passionate about it, from genetics to market. So, stay tuned.”
The best way to reach out to Mike Fata is via LinkedIn.