If Passed into Law, Massachusetts Will Join Colorado, Illinois, Maine, and California, States that Allow or Likely Will Soon Allow CBD-Infused Food and Beverages
A bill has been introduced into the Massachusetts House of Representatives to legalize products including food and beverages infused with CBD.
This action was taken in response to actions by the Massachusetts Department of Agricultural Resources, which banned CBD-infused food and beverages, and nutritional and dietary supplements. Massachusett’s regulators took that action in response to guidance provided by the U.S. Food and Drug Administration (FDA) indicating that CBD as a food or beverage additive and as a nutritional supplement is not “Generally Regarded as Safe” (GRAS).
If passed into law, Massachusets will join Colorado and Illinois who are ignoring the FDA’s position on CBD, Maine, which allows CBD-infused food and beverage products, and California, where a bill is moving through the state’s legislature.
Other states are also seeing the advantages of the new hemp and CBD industries, which include job creation and of course additional sources of tax revenue.
As legalization of CBD at the state-level continues to spread throughout the United States, it is difficult for small, medium, and large food, beverage, and cosmetic CPG (Consumer Packaged Goods) companies to ignore these markets for products that include CBD.
If larger CPG companies sit on the sidelines and ignore these states, it’s likely that they will cede the market to smaller, entrepreneurial competitors, and they will likely lose their first-to-market or early-to-market advantages.
As the expression goes, “the devil is in the details.” What’s unknown is whether these states will allow the importation of CBD products into their states, or whether it will be required for the products to be manufactured within the states.
While the Farm Bill, which was signed into law in December, allowed the interstate commerce of CBD, these states may establish a regulatory framework that requires CBD products to be manufactured within the state under a new regulatory and licensing framework. This could close out the states to imports of CBD-infused food and beverage products and nutritional supplements manufactured in other states.