GLG partners with East West Pharma to expand CBD distribution in the EU and Canada
05 Dec 2019 --- Sweeteners player GLG Life Tech Corporation (GLG), has signed an agreement with East West Pharma Group (EWPG) for the distribution of high-quality cannabidiol (CBD) products across Canada and Europe. Under the terms of the five-year agreement, GLG will have exclusive distribution rights for EWPG’s CBD products, including extracts, distillates and isolates. In partnering with EWPG, GLG expects to deliver large volumes of high-quality CBD products for other companies in the space to use in their end-consumer products. The move comes as the CBD space is heating up despite regulatory unclarity, with a string of industry players having released innovative NPD.
“We are excited to be entering the rapidly growing CBD space on the strengths of our partnership with East West Pharma and our many years of experience selling high-quality cost-competitive extract products around the world. Knowing that we have joined forces with the company gives me great optimism for future success in selling significant quantities of these CBD products at attractive price points in Canada, Europe, and beyond,” says Dr. Luke Zhang, GLG’s CEO and Board Chairman.
Amind a hazy regulatory environment, albeit with increased consumer demand, CBD product development continues to emerge across the food and beverage industry. From functional drinks to CBD-infused confectionery and even in pharmaceutical applications, the CBD space is nothing short of prolific. Innova Market Insights has pegged “A Star is Born” as one of its top trends of 2020, noting the importance of ingredients like CBD, which are seeing exponential growth in both popularity and applications.
Amind a hazy regulatory environment, albeit with increased consumer demand, CBD product development continues to emerge across the food and beverage industry.GLG’s decision to enter the CBD space by partnering with EWPG aligns well with the company’s historical business focus and core competencies, the company notes. Both stevia and CBD are, at their root, agricultural products with successful endeavors stemming from access to high-quality cultivars containing elevated levels of the essential plant molecules. Also key are the quality-minded manufacturing and product control procedures. For EWPG and GLG, quality throughout the supply, production and distribution chain are important.
EWPG has the capacity to produce 350 metric tons of CBD products annually and GLG expects to sell a significant percentage of that volume. EWPG has access to plant strains with especially high levels of CBD, which will enable EWPG to achieve optimal processing efficiency for its CBD products, the company says. With this efficiency and high-quality industry standards applied throughout the production chain, GLG will, in turn, be positioned to offer high-quality and purity CBD extracts, distillates and isolates.
EWPG’s CEO John Vu comments that “partnering with GLG allows us an opportunity to showcase our skills and especially our CBD products to the world.”
The CBD trend is expected to maintain its appeal and in a recent beverage trends report Imbibe forecasts its growth potential. Despite complicated regulations and the US Food and Drug Administration (FDA) warnings, the CBD market will continue to thrive in 2020, Imbibe says.
Distributing CBD can be complicated because it comes from the cannabis plant and is federally illegal as a food additive and in supplements. However, CBD naturally occurs in hemp oil and hemp extract, which are legal under the US Farm Bill. Hemp oil, hemp extracts and broad-spectrum hemp extract will be the most common ingredients used in CBD beverages.
Edited by Kristiana Lalou
