Deal Alert :: Charlotte's Web

Founders:

CW Hemp, the provider of Charlotte's Web Hemp Extract, is a family-owned Colorado Company. The core team includes CEO Joel Stanley, VP Jesse Stanley, Director of Cultivation Jared Stanley, Asst. Director of Cultivation Jordan Stanley, and Greenhouse Manager Austin Stanley.

Problem:

The Charlotte's Web team believes that athletes--especially those in contact sports--aren't as well protected as they need to be, and that no equipment will ever be effective enough. They believe that the benefits offered by their hemp extract has the potential to make a splash in the sports arena too, in the way that athletes protect themselves and recover. There's a lot of misinformation and skepticism that comes with the cannabanoids territory, however, and there are currently no trusted products available for such purposes. 

Solution:

CW Hemp is interested in expanding the current Charlotte's Web line--natural dietary supplements made from whole plant hemp extract and meant to enhance neuro health--to include athlete-focused products as well. The new formula would be tailored specifically towards active individuals and based on the theory that cannabanoids enhance recovery and help to decrease the risk of CTE (Chronic Traumatic Encephalopathy, a degenerative disease resulting from severe or repeated blows to the head). The verdict is still out, but research suggests possible benefits involving:

  • Cannabinoids: naturally occurring antioxidants and neuroprotectants found in hemp; assist in the regulation of the body's central nervous, immune, and endocannabinoid systems
  • Neuroprotectants: promote proper function of the central nervous system; can help maintain healthy blood flow
  • Antioxidants: naturally produced by the body; help to restore homeostasis; defend against premature signs of aging caused by environmental threats

A Quick Explanation:

  • Hemp and marijuana are both cannabis and contain hundreds of cannabinoids.
  • Marijuana has > 0.3% THC (the only cannabinoid that gets you "high").
  • Hemp has < 0.3% THC and is legal in all states.
  • CBD is a single, non-psychoactive cannabinoid and can be in either marijuana or hemp.
  • Charlotte's Web is hemp that contains a proprietary full spectrum of cannabinoids, but contains THC levels of 0.3% or less so is classified as hemp and legal in all 50 states.

Market:

Though Charlotte's Web primarily targets humans and pets, their products are carried everywhere from doctor offices, vet clinics, and pet stores, to MMA gyms, ski shops, and health food stores. The product line that is in the works for 2017 will be geared towards athletes and generally active individuals.

Traction:

With their non-athletic line, Charlotte's Web tripled in size from 2015-2016, going from $300,000 to $1.6 million in one year (with almost 0 marketing dollars). When its story was aired on CNN, the industry took off with Charlotte's Web as the leading pioneers. In 2017, the company is slated to spend several million dollars on marketing.

Learn more: http://www.cwhemp.com/