We have our Novel Foods License - Changes Are Coming For CBD
In early 2019, The Novel Foods Catalogue was updated to state that CBD extracts was now classified as a ‘novel food’. This had great implications for the CBD market and massive changes are now afoot.
At the time of February 2019, CBD sales in the UK had grown at such a rate that there were over 1,000 UK brands compared to 5 years previous when there were less than 12.
This rapid growth which turned the CBD market into a multi-million pound industry was unprecedented, and was a massive blow to the pharmaceutical industry who found that people were shifting from more traditional medicines and treatments to the natural alternative of CBD.
The huge lost revenue to the power-house pharmaceutical companies was never going to be withstood and the writing was on the wall that things would get tougher for the CBD market.
In February last year (2020), the Food Standards Agency (FSA) released a statement saying that as from 31 March 2021, all CBD can only be sold by companies that hold a "Novel Food" license. This license costs in-between £20k to £250k depending on what is being sold.
Now the once flourishing smaller CBD companies will be forced to purchase from very large CBD manufacturers who have been able to successfully obtain the new License. The Food Standards Agency, under the government, will be able to approve (or disapprove) all applications.
As CBD full plant extract has been around for 1000’s of years, many trade bodies such as the Cannabis Trades Association (CTA), argued that it should not be classified as ‘Novel’, but unfortunately they have lost this battle.
One positive to come out of all of this is that those less than adequate products which have entered the market to ride the coat tails of the success of CBD, will be sifted out as they will not be able to reach the new standards of regulation.
However, following these huge changes, the future for many reputable CBD companies also remains in the balance. Watch this space!
We are very proud to announce that we have our license and are good to go for the 31st March 2021.
Thanks to everyone that has supported so far :)