California has passed a new law formally permitting the sale of hemp-derived CBD products in the state in a move welcomed by suppliers.
Signed into law by California Governor Gavin Newsom last week, Assembly Bill 45 establishes a comprehensive regulatory framework for the manufacture and retail sale of CBD products including dietary supplements, topicals and pet treatments.
It also includes testing, labelling, approved source and registration requirements with a lead time to allow companies to meet compliance obligations.
Elixinol Wellness, for whom California accounts for 14% of its total US e-commerce revenue, welcomed the move.
Global CEO Oliver Horn said: “The new guidelines… could help clean up the CBD market nationwide, given California is by far the largest and most important CBD market in the US.
“We expect it to create new trade opportunities between Elixinol and major retailers, who were previously seeking clear regulatory guidance at the state level.”
Elixinol has upgraded its online shop and e-commerce platform in a bid to capitalise.
Horn added: “California is a major market opportunity. We are looking forward to using this new platform and a range of great new options for customers to capture further growth, both in California and the rest of the US.”