The CBD market has been heavily restricted since 2020. Now, finally, the FSA has published its list of credible novel foods applications
If the FSA had waited just a few more weeks to release its list of CBD products with credible novel food applications, it could have done so on 4/20. But the food safety watchdog isn’t known for its sense of humour. And the CBD industry is tired of waiting.
Last week the FSA published a huge list online of suppliers with valid novel foods applications pending approval.
It’s a huge step for the category, which has in essence been frozen since the FSA mounted its crackdown on the largely unregulated market in 2020, when it banned new entrants to the market and told those already selling CBD goods to submit a novel foods application or remove their products from sale.
It’s important to stress that the FSA has not actually approved any of the 3,500-plus products on the list – which it published online last week – for sale. It just means those products can remain on shelf until it makes a final call further down the line.
So what does the publication of the list mean for the category? After two years of stasis and a global pandemic, does CBD still have the momentum it had back when it first exploded on to the UK market? And with authorisation finally coming into sight, what does the future hold for the category?
“It’s such a shame to have your business held back by a government-run body”
The FSA is now to begin encouraging local authorities to crack down on suppliers whose products have not made the cut. And there were a few glaring omissions from the list at the time of writing – leaving some suppliers confused as to why they were left off.
That includes Puresport, a major supplier whose website claims it is the UK’s “leading wellness brand” with features in a swathe of national media titles such as Cosmo and HuffPost. A spokeswoman for the brand says it is “very pleased” to see the publication of the list. “Our application is also under review and we are confident it will be added to the FSA’s list shortly.”
Or Vita Coco, whose CBD drinks were absent too. A spokeswoman for the brand says its products “have been submitted in accordance with the FSA timings and regulations”. There “appear to have been a few surprising absences from this list and we are waiting to see if the list will be updated to reflect this”, she adds.
Similarly aggrieved is Cannabrew founder Elliot Horner, who says his business has “received no indication or status update” from the FSA. “It’s such a shame to have your business held back by a government-run body,” he says.
Paul Tossell, head of radiological, GM for the Novel Foods and Feed Additives branch of the FSA, says it has “written to all applicants who were unsuccessful in their application to the public list with the reason for our decision. Where a business is part of a consortium application, we advise them to contact their primary supplier who made the application, as that is our point of contact.”
Clive Sharpe, co-founder of Cannaray (which is on the list) says there could be “a big fallout because a lot [of brands] haven’t got through”. And Olivia Ferdi, from Trip CBD (also on the list) adds she would not be surprised if suppliers – or a group of suppliers – “could, over time, consider appeal or challenge” the FSA’s decision.
One other unintended consequence of last week’s news, Dr Daryl Rees of Salupont Consulting points out, could be that brands which haven’t made it on to the list have to pivot into areas they can still play in – like cosmetics, which don’t need novel foods authorisation. “Those companies may not disappear entirely but may have to shift their focus onto the only category they can sell it in. It’s not necessarily the endgame.”
Handbrakes off
Regardless of last week’s news, only once the FSA actually begins authorising brands for sale – which could take at least another year – will the handbrakes truly come off, says Rees.
“The category at that point can really move on because innovation will be allowed. Until then, you could argue the CBD situation is still in stasis.”
“The FSA closed the doors to new businesses in February 2020,” agrees Intune founder Hannah Glasson. “There have been less new product launches and less innovation. Once the approvals come through we will see a flood of products on to the market.”
Despite this, the publication of the list may help address the doubts of retailers who have shied away from fully embracing CBD due to uncertainty surrounding the process.
“I think this is going to change a lot. Although the FSA process has taken longer than planned, it gives confidence to consumers and retailers and will clear a lot of grey mist in the category,” says Sharpe.
“Certain retailers have been holding back on changing ranges or listing [CBD food and drink] for the first time. It will open that up.”
Having the framework in place could similarly embolden bigger suppliers – while discouraging SMEs and startups.
“The novel foods process will undoubtedly put off a lot of small entrepreneurial startups. It requires organisations with certain skillsets smaller players won’t have, and will stifle innovation to a degree,” says Sharpe.
He believes big businesses like Nestlé, Unilever, Coca-Cola – “anyone with a health and wellness strand to their business” – will already be eyeing potential moves.
Not to mention the potential for improved advertising. Sharpe notes both Amazon and eBay have limited their risks so far by asking for evidence of brands’ submissions to the FSA. As the FSA process continues, he says, it will give the likes of Google and Meta a framework to use for allowing advertising by regulated brands.
Scale of the opportunity
If figures from the Association for the Cannabinoid Industry (ACI) are anything to go by, the scale of the opportunity could be massive. The ACI estimates the category was worth more than £690m in 2021.
Not everyone agrees with that number. “One of the issues the industry is facing is there is not one reliable source of data”, says Sharpe, suggesting the true figure could be “nowhere near” as high as £690m. It’s hard to measure because much CBD is sold outside traditional channels monitored by the likes of NielsenIQ and Kantar.
Plus, shoppers are marginally less hyped about CBD than they were pre-pandemic. “Some of the initial hype has died down, says Rees. “[The market] has moved into more of a consolidated growth phase.”
And while the end of the battle for novel foods certification looks to be drawing to a close, another hurdle looms. Even with eventual authorisation, CBD brands will have some way to go to prove their alleged health credentials, says Rees.
“In a sense a lot of the hype has been based on hearsay: ‘I feel calmer or sleep easier when I take CBD’ and although there is good anecdotal evidence, for it to move forward there will need to be good robust clinical studies to be able to make health claims for the products.”
The ramifications go beyond CBD, too. Rees says the conclusion of the novel foods saga could have wider ramifications for innovation in food and drink with other novel foods.
“It has always been seen as too difficult to do novel foods, but this has shown that you can, and quite rapidly. There will be an appetite for more innovation because people can see it’s not going to be a loss-making path.”
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