Restaurant CBD Sales are Booming, but New Liability Concerns Keep Cannabis Producers from Cashing In
Arent Fox Associate Emily Leongini was quoted in the Hemp Industry Daily article, “Restaurant CBD sales are booming, but new liability concerns keep cannabis producers from cashing in,” published on June 10, 2019.
With US sales of hemp-derived CBD products projected to top $1 billion this year, restaurants and bars are eager to capitalize on growing consumer demand for all things hemp. Emily explained that “[t]here is huge demand in the marketplace for all things CBD, so there are a lot of business opportunities and opportunities to make money in the space,” but that “[y]ou can’t work in this space and have no risk… The question becomes: What is your risk tolerance? How much risk, and what kind of risk, are you willing to accept?”
The FDA has repeatedly warned that it is illegal to include CBD in food, cosmetics or dietary supplements. “The federal standard is very clear right now,” added Emily. “The FDA has taken the position that CBD may not lawfully be added to foods because it is an active drug ingredient (in Epidiolex).”
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