Guest post written by Ciara Cullen (Partner) and Hannah Ridzuan-Allen (Associate) at RPC.
CBD products no longer “ex-hemp” from regulation
In recent years, there has been a surge in demand for food and drink products containing cannabidiol (CBD). Popular items have ranged from oils with added CBD to CBD-infused chocolate and kombucha. With the market experiencing double-digit growth year on year and a recent spike in demand during ‘lockdown’, UK consumers continue to demonstrate ever greater interest in CBD products. But with new regulatory requirements on the horizon, are things about to change?
Along with Tetrahydrocannabinol (THC), CBD is a natural compound found in the cannabis plant. The distinction between the two compounds is that whilst THC is psychoactive, CBD is (seemingly) not. CBD has only very recently been removed and sold as a separate extract, and as such, little is known about the mid to long-term effects of consumption.
What about the science? How do THC and CBD affect the human body?
Both THC and CBD are types of cannabinoids, which interact with the human body’s own internal endocannabinoid system. Discovered in the 1990s, endocannabinoids are the natural cannabis-like molecules produced by the human body. Current studies suggest that the key role of the endocannabinoid system is to maintain bodily homeostasis (biological harmony in response to changes in the environment). Whilst it was originally understood that receptors were only present in the brain and nerves, scientists have since determined that they are present throughout the body including, for example, in human skin, immune cells, heart, blood vessels, and kidneys. We also now know that the endocannabinoid system is involved in a wide variety of processes, including pain perception, appetite, metabolism, mood, appetite, and reproductive function.
Why is there so much discussion about CBD products at the moment?
Until last year, CBD had seemingly slipped between the cracks of various regulatory regimes: neither a ‘Controlled Drug’ for the purposes of the Misuse of Drugs Act 1971 nor a ‘Medicinal product’ under Regulation 2 of The Human Medicines Regulations 2012. This changed in January 2019 however, when CBD was listed as a ‘novel food’.
Regulation of CBD products as ‘novel foods’
Under Regulation (EU) 2015/2283 a ‘novel food’ is any food that was not used for human consumption to a significant degree within the EU before 15 May 1997. If a food product, manufacturing method or ingredient is classified as novel then safety assessments must be undertaken, before that product can be sold to consumers, to ensure that it is safe for human consumption. Until last year, CBD products were not considered novel and so could enter the market without authorisation. However, in January 2019, the legal status of CBD products changed when a new entry on cannabinoids ,which include CBD, was published in the EU Novel food catalogue.
Food standards agencies across the EU have responded to the catalogue entry very differently. In Spain and Austria, CBD food and drink products have been removed from the market and cannot be sold until they receive novel foods authorisation. Meanwhile, Germany and the UK have taken a ‘phased compliance’ approach and have permitted CBD products that are ‘already on the market’ to continue to be sold, during an interim period. This period expires on 31 March 2021, by which time, all those who wish to market CBD products in the UK will need to have submitted an application for novel food authorisation to the UK’s Food Standards Agency (FSA). Food and drink products that fail to meet this deadline will have to be removed from the shelves, or risk enforcement action. It is therefore imperative that marketers of CBD products use this time to ensure that the necessary authorisation is in place on or before 1 April 2021. Likewise, retailers who source CBD products from third parties should ensure that their suppliers are working towards the deadline and that they have the requisite knowledge and resources to complete the application process.
CBD sales during ‘lockdown’
Although retailers are facing regulatory challenges, it remains a promising time for the UK’s burgeoning CBD industry. During the first four months of 2020, UK spending on CBD products exceeded £150M. If these sales volumes continue, the industry is set to hit annual revenues of £450M — up 50% from 2019. The surge is likely attributable in part to the fact that CBD is touted by many for its stress-reducing properties: between 20–30 March 2020, almost half of the surveyed UK public reported experiencing high anxiety. In these uncertain times, the CBD market has become an unexpected beneficiary of the UK’s national psyche.