Trust is essential for any emerging sector. Without consumer confidence that ingredients are properly sourced, correctly produced, and of high quality a market crash is inevitable. This is especially true for the emerging CBD sector. A series of health scandals and the opaque nature of many operators has significantly slowed mainstream adoption of an industry set to be worth $20 billion by 2022.
A handful of companies are setting the bar higher and it is beginning to pay off. Veritas Farms Inc. (OTC: VFRM), a paragon of transparency in the sector, has recently leveraged their commitment to quality and transparency to secure a groundbreaking distribution agreement with 152 South Eastern Stores.
Health Scares and Fuzzy Legislation have historically concerned brick and mortar retailers
The passage of the Farm Bill sparked an explosion in CBD companies. Operators across North America scrambled for pole position in what was considered one of the fastest growing sub-sectors of the cannabis industry and observers heralded the next phase of the cannabis sector. The problem is that regulations and standards hadn’t yet caught up. The Farm Bill legalized Hemp at a federal level but did not put any framework in place governing the quality of hemp products produced in, or imported into, the United States.
This has created a concerning situation for retailers, like Winn-Dixie and BI-LO, who have industry leading quality control and safety requirements for every product they stock. Concerns surrounding the practices of many CBD operators has discouraged retailers from stocking CBD products, despite consumer demand. Now that is beginning to change.
Shining a light on the CBD production process
Veritas Farms represents the gold standard of how CBD companies should be operating. Whilst they are certainly not shy about promoting the benefits and selling points of their full-spectrum hemp products they do not make any unfounded claims on their website.
The company is vertically integrated, which means that they maintain complete control over their supply line and will not run into problems with unscrupulous suppliers. They also maintain strict quality control over all of their hemp and every product comes with a guarantee of source and quality.
While the company keeps a certificate of analysis available on their website, they also utilize innovative methods to ensure that Veritas customers know exactly what they are getting. In April the company released QR code packaging which enabled consumers to check the certificate of analysis by using their smartphones.
This dedication to transparency has paid off. Veritas Farms have significantly increased revenue year on year in Q2 2019 by more than 500% to an impressive $2,971,345. The company has also significantly expanded its brick and mortar presence in America and cultivated a distribution network that extends overseas into Europe.
Trust is the key for success in the CBD sector
This has recently expanded with the Winn-Dixie and BI-LO distribution agreement. Winn-Dixie’s decision to stock full spectrum hemp oil products is not just a big step forward for Veritas Farms but also for the CBD and Hemp industry generally. It demonstrates the growing acceptance of full spectrum hemp and CBD as a product that provides tangible benefits to many consumers.
A reverse stock split, combined with with this new milestone have put the company in a position where it could realistically apply to uplist to a national securities exchange.
Companies like Veritas Farms who focus on ensuring their products can be trusted are putting themselves into a position to thrive as the CBD sector becomes increasingly professional. Smaller, less scrupulous operators will quickly find themselves left behind while Veritas and smart investors reap the benefits of sustainable long term plans.
This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff, or associates.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the company may believe that its expectations are based on reasonable assumptions, the actual results that the company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the company only as of the date hereof.
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