By Spencer Feingold
The CBD products maker CV Sciences is expanding its reach with a major new distribution deal with Kroger, one of the leading U.S. grocery chains.
The company’s PlusCBD Oil brand will now be available in 945 Kroger stores across 17 states — marking a significant development in the exploding CDB industry, which is increasingly pushing into the mainstream world of retail.
"The mass merchandise retailers have started with topical products,” Joe Dowling, CV Sciences’ CEO, told Cheddar in an interview Friday.
As CBD products — from shampoo to pet treats — become increasingly popular, many mass retailers have been hesitant to sell them citing regulatory concerns. Dowling said, however, that major chains, such as Kroger ($KR), are drawn to CV Sciences given the company’s comprehensive safety tests.
“We are the only company in the product category to have completed the full battery of toxicology studies that have determined that our ingredient is safe,” he said. “When you are speaking to big retailers, that is a huge comfort for them.”
Already, CV Sciences’ PlusCBD Oil products are sold in over 4,500 retail stores and continues to enjoy increasing profits. The company reported $48.2 million in revenue in 2018, an increase of 133 percent from the year prior.
“This is not a product for sick people, this is a product for healthy people that are looking to optimize wellness,” Dowling explained.
The total CBD industry is estimated to reach $20 billion by 2024, according to a recent study.