Retailers struggle to keep popular cannabis extract CBD on shelves in Canada

Shortage affects jurisdictions in British Columbia, Nova Scotia and Newfoundland and Labrador

Retailers across Canada are struggling with a shortage of all cannabis, but there’s one product they’re especially desperate to keep on shelves: cannabidiol or CBD, a non-intoxicating extract vaunted for its purported health benefits.

The extract, most commonly sold as oil, has been promoted as a natural cure for pain, anxiety and insomnia, despite limited medical research. Many customers are coming in asking for it, especially first-time and older users, store owners say.

“I don’t think the licensed producers really realized how popular CBD was, so there’s none available, really,” said Krystian Wetulani, founder of City Cannabis Co. in Vancouver.

“When something becomes available on the cannabis wholesale ordering sheet, everybody tries to get all that’s available. It’s like a race. That’s one of the biggest opportunities we’re facing in the legalized market.”

READ MORE: Edibles legalization fraught with hurdles, lack of clarity, companies say

Companies are ramping up hemp growth to produce the trendy extract, but observers expect the shortage to persist until late this year. Meanwhile, scientists are working to separate the hype from reality when it comes to medical claims about the drug.

While licensed producers were preparing for legalization last year, they assumed most of the demand was going to be for cannabis high in THC, the intoxicating ingredient, said Khurram Malik, CEO of Biome Grow.

The buzz around CBD grew with the passage last year of a U.S. law known as the farm bill, which allows for the growing of hemp for the purposes of extracting cannabidiol, he said. Similar regulations came into effect in Canada in October.

But it was the U.S. law that drove up media coverage and social-media influencer chatter, Malik said. Kim Kardashian West recently posted on Instagram about her “CBD baby shower,” where she invited guests to make cannabidiol-infused salt scrubs and body oil.

“Because of the farm bill passing, the sexiness or the in-vogue profile of CBD went through the roof,” said Malik. “The demand side just blew up and caught everyone by surprise, on both sides of the border.”

Extracting CBD from hemp, which is low-THC and high-CBD, is more affordable because the crop can be grown outdoors on a large scale under Canadian rules that are less restrictive than those for producing high-THC marijuana, Malik said.

Biome Grow has partnered with CBD Acres, which Malik said will supply his company with up to 20,000 kilograms of cannabidiol concentrate annually in order to serve Canadian and international markets.

The CBD shortage affects jurisdictions across Canada, said provincial distributors in British Columbia, Nova Scotia and Newfoundland and Labrador.

“There has been a significant learning curve for licensed producers as they transition into supplying a new market,” said B.C.’s Liquor Distribution Branch in a statement. “Licensed producers are working towards becoming more efficient, however many of their expansion projects have not yet been fully ramped up.”

The branch added it expects supply to increase in the second half of 2019 as expansions come online and more producers receive licences to enter the marketplace.

Beverley Ware, a spokeswoman for the Nova Scotia Liquor Corp., said while it has “CBD leaning” products, it has not been able to consistently carry pure CBD oil due to the national shortage.

Customers looking for CBD products would prefer not to smoke them and don’t want the added THC, said Darrell Smith, spokesman for the Newfoundland and Labrador Liquor Corp.

“It has been a challenge to source a steady supply of these products as they are often reserved for the medical cannabis community,” he said.

Ivan Ross Vrana, cannabis adviser at Hill+Knowlton Strategies, said he didn’t think that producers failed to anticipate the high demand for CBD.

“I think what the industry, given its newness, is grappling with — and a lot of companies are getting a good handle on — is about consistently growing the product that consumers want,” he said.

“It’s not easy. I know people think, ‘It’s just a weed. We can grow this no problem.’ It’s not. You’re still growing a plant and Mother Nature has a large say in that.”

The legalization of edibles, extracts and topicals later this year is likely to further ramp up demand, Ross Vrana said. CBD-infused creams, beverages, food and even pain-relief products for pets are expected to be growing market segments.

Despite the hype, research into the health benefits of cannabidiol has been fairly limited, said Dr. Gabriella Gobbi, a psychiatrist at McGill University who has studied the drug.

Gobbi’s team published a study in the journal Pain last October that pinpointed the effective dose of CBD for safe relief of pain and anxiety. The U.S. Food and Drug Administration has also approved a CBD drug to treat children with severe epilepsy.

But more research is still needed, particularly on CBD’s effects on anxiety and insomnia, Gobbi said.

Some patients who try it experience no effects and studies have also indicated a placebo effect in some people with anxiety, depression and pain, she added.

“Today there is a dominant culture of cannabis, a dominant culture of everything that is natural is good. This is why … cannabidiol is so popular.”

Laura Kane, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

William Griffin arrested in Houston homicide

RCMP have now arrested William Griffin, the man wanted in connection to… Continue reading

Vanderhoof resident questioning council over decision to be observers at water engagement roundtable

The Water Engagement Initiative was started by Rio Tinto earlier this year

B.C. municipality wants ALC to reconsider their decision in regard to pipeline work camp

The ALC had rejected the construction of the Coastal GasLink work camp behind the Vanderhoof airport in October

Icy conditions lead to multiple accidents on Highway 16

Several motor vehicle accidents have taken place since the start of November… Continue reading

No crafts fair in Fort St. James today due to a power outage

Update: Residents in the district lost power on Nov. 16 at 7 am

VIDEO: B.C. couple creates three-storey ‘doggie mansion’ for their five pups

Group of seven, who Kylee Ryan has dubbed as the ‘wandering paws,’ have a neat setup in Jade City

MacKinnon powers Avs to 5-4 OT win over Canucks

Vancouver battled back late to pick up single point

Poole’s Land finale: Tofino’s legendary ‘hippie commune’ being dismantled

Series of land-use fines inspire owner Michael Poole to sell the roughly 20-acre property.

Port Alberni mom takes school district to court over Indigenous smudging, prayer in class

Candice Servatius, who is an evangelical Christian, is suing School District 70

Family of B.C. man killed in hit-and-run plead for tips, one year later

Cameron Kerr’s family says the driver and passengers tried to cover their tracks

Princeton couple pays for dream vacation with 840,000 grocery store points

It’s easy if you know what you are doing, they say

Chilliwack family’s dog missing after using online pet-sitting service

Frankie the pit bull bolted and hit by a car shortly after drop off through Rover.com

B.C. wildlife experts urge hunters to switch ammo to stop lead poisoning in birds

OWL, in Delta, is currently treating two eagles for lead poisoning

Most Read