While marijuana legalization efforts in several US states pick up steam, the cannabis industry isn’t forgetting about the market potential for hemp-based products that don’t contain THC and aren’t aimed at producing a high.
Further expanding in that sector, Green Growth Brands, Inc. (CSE: GGB; OTCQB: GGBXF) just officially opened two new Seventh Sense-branded retail stores in Kentucky and Indiana.
Rather than selling oils or capsules meant to be directly ingested, the Seventh Sense brand focuses on beauty and health products infused with CBD such as skin lotion, lip balm, sugar scrub, and bath salts.
With the new stores — located in Louisville and Indianapolis, respectively — now open for business, that bumps up Green Growth’s total number of existing CBD shops to seven. The company is aiming to significantly increase that number by year’s end to more than 100.
Both shops opened via leasing deals with property companies, with the Kentucky store leased by Green Growth through Brookfield Properties. The Indiana-based store meanwhile opened through a leasing deal with Simon Property Group (NYSE: SPG).
Green Growth is currently eyeing a whopping 108 mall locations nationwide to open additional CBD stores via Simon. Chief Executive Officer Peter Horvath issued this statement about the new store leasing and upcoming openings:
Hemp-based CBD products have seen a sudden boom in the US after the 2018 farm bill effectively legalized industrial hemp production. As mom and pop vape shops, Smoker Friendly outlets, and even convenience stores see CBD offerings arrive, many of the larger producers are looking in new directions for revenue.
In particular, established companies have moved towards health and wellness CBD products rather than the standard edibles such as pills and gummies or oils for vaping and taking sublingually.
That shift has seen some producers growing into unexpected areas of the market. Just last month, Canopy Growth Corporation (TSX:WEED; NYSE:CGC) entered a partnership with lifestyle icon Martha Stewart to develop and produce CBD products aimed at pets.
The CBD sector is expected to continue growing over the coming year, spurred on by Baby Boomers and Millenials looking for new products marketed towards treating conditions such as anxiety and sleeplessness.