The cannabis compound, CBD, has been one of the hottest consumer trends as of late. You can’t escape the frenzy surrounding it. Now, one of the nation’s largest grocery retailers, Kroger, will begin selling CBD in about 1,000 of its stores. However, it won’t be offering any CBD-infused groceries at this point.
Kroger will be adding its name to an already growing list of national retailers that have begun to sell CBD products. It joins Walgreens, CVS, Vitamin Shoppe, and GNC. Kroger will start selling hemp-derived CBD topical creams, balms, and oils in 945 stores across 17 states.
A spokeswoman from Kroger said:
Like many retailers, we are starting to offer our customers a highly-curated selection of topical products like lotions, balms, oils, and creams that are infused with hemp-derived CBD.
Since Congress passed the farm bill late last year, more and more consumers are becoming intrigued by CBD, which promises to help relieve health problems like anxiety and pain. These maladies afflict millions of people every day, and a growing number of people claim that CBD has worked wonders for problems that they had learned to live with.
Despite Congress passing the farm bill, the Food and Drug Administration still says that CBD can’t be added to food or sold as a dietary supplement. That’s why companies are playing it safe and stocking shelves with CBD-infused beauty and skincare products.
This is a major change for Kroger, especially at a time when the company is focused on repositioning its business to increase its position as a top retailer, while warding off Walmart and Amazon. The company has created an investment plan called “Restock Kroger,” and is putting money into its digital sales and delivery services so it can keep up with consumers’ shopping habits and compete with Amazon and Walmart.
In addition to those efforts, Kroger has been strengthening its partnership with the pharmacy chain Walgreens. This partnership helps both businesses defend themselves against strong threats from larger retailers. Walgreens will offer 2,300 Kroger products on the shelves of 13 of its stores.
Kroger will sell its CBD products in Arizona, Arkansas, Colorado, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Nevada, Oregon, South Carolina, Tennessee, West Virginia, Washington, Wisconsin, and Wyoming. As the popularity of CBD grows and its health benefits become more apparent, Kroger’s sales could significantly increase. Consumers trust the brand and will trust its CBD products rather than those found at some random store.
Leading cannabis researchers BDS Analytics and Arcview Market Research forecast that the collective market for CBD sales in the U.S. will surpass $20 billion by 2024. This forecast takes into account products sold through licensed dispensaries, pharmaceuticals, and general market retail (cafes, smoke shops, grocery stores, and pharmacies).
The CBD industry and the demand for it is growing, and it only makes sense for Kroger to take a bite of a piece of this lucrative market.
Until next time,