Socati, a US hemp extract processing company, has launched its private label lineup of cannabinoid products providing hemp-focused brands with customizable, cannabidiol (CBD)-rich finished products. The new private label offering provides a full “concept-to-market” partnership for both established brands looking to develop new lines of hemp-infused products and entities looking to launch new and innovative brands in the growing CBD market. Socati’s Chief Revenue Officer Mark Elfenbein tells NutritionInsight how increased consumer interest in CBD is driving new brands to enter this lucrative space.
“Outside of the top 20 brands in the marketplace, all brands need a partner who can produce a high-quality end-to-end finished packaged product that they can market. Socati is the first to offer the ability to customize the minor cannabinoid ratio in water-soluble and broad-spectrum oils. We have announced the launch of a much-enhanced consumer experience with our direct-to-mouth flavored crystals,” says Elfenbein.
Ranging from CBD to minor cannabinoids, such as cannabigerol (CBG) and cannabinol (CBN), customizable private label products from Socati include:
- Crystalized flavored powder: Fine, water-soluble, flavored crystalline powder available in stick packs or in bulk to precise specification and potency.
- Gummies: Fully customizable vegan and organic defined spectrum CBD gummies with four natural fruit flavors.
- Tinctures: A line of tinctures using only natural flavorings or essential oils in combination with natural sweeteners.
- Softgels: Water-soluble capsules made with all-natural ingredients filled with oil of customizable potency.
- Pressed Tablets: Tight-pressed, easy-to-swallow tablets made from customizable powder ingredients.
- Two-piece capsules: Comprised of two rigid shells filled with dry powder or viscous oil to customized potencies.
“Consumers historically have gravitated to formats such as tinctures, gummies, soft gels and topicals. However, Socati is launching a new format known as direct-to-mouth, which is a crystal with flavors such as Peach Mango. This has no bitter CBD taste, which is traditionally associated with tinctures,” notes Elfenbein.Product safety measures
Backed by stringent internal and independent testing, Socati’s Montana-based cannabinoid ingredient manufacturing facility complies with Global Food Safety Initiative (GFSI)-recognized benchmarking requirements and adheres to Good Manufacturing Practice (GMP) standards for manufacturing.They are non-GMO, tested and verified by third-party labs, produced in a food-grade, processing facility, kosher and made to ingredient-grade specifications.Also, all of Socati’s product lines allow brands to select custom ratios with non-detectable tetrahydrocannabinol (THC). “Our definition of non-detectable THC is determined by independent testing with leading US laboratories. Doing so ensures transparency on the contents of ingredient products,” Elfenbein explains.CBD regulatory challenges
Elfenbein affirms that the biggest challenge the CBD sector faces is regulatory. Large traditional retailers, such as Kroger, who had plans to enter the space in Q4 of 2019, have pushed their entry dates to Q2 of 2020 and are awaiting guidance, Elfenbein highlights.
At the same time, however, the barriers to enter the marketplace are very low currently. This means that many new brands are entering and competing for limited shelf space at retail, he outlines.Regulatory restrictions remain rigid in the EU, where the use of CBD in food and beverage launches is not yet permitted, as CBD is considered an unauthorized novel food. Regulatory updates are pending to allow manufacturers to use it in food and beverage applications.Regardless, innovation is ahead of EU legislation regarding CBD, according to Eral Osmanoglou, MD of Becanex. While this space can be a difficult area to operate, many countries, such as the Netherlands, do not police the regulation change, spurring market growth. Osmanoglou speculates that within a few years, CBD will be accepted, as well as recreational cannabis.Socati plans to announce additional product innovations ahead of the 2020 Natural Products Expo West, hosted in Anaheim, California, US, next March.