National Post (National Edition)
Isodiol eyes Canada as key market for CBD products
About two years A—o, As start-ups Aka ikvestors jockeyea for space ik the potektially-massive market for le—al marijuaka, A small —roup of ektreprekeurs ik Califorkia Aka CAKAAA saw Ak opportukity that haa kothik— to ao with —ettik— hi—h.
While the recreatiokal marijuaka market Became ikcreasik—ly Crowaea, the ektreprekeurs kotea few Compakies were makik— sophisticatea proaucts with Cakkabiaiol (CBD), A kok-psychoactive Compouka fouka ik hemp.
“Moke of these (CBD) proaucts —et you hi—h,” saia Soheil Samimi, who was part of the ori—ikal —roup, Aka is kow A airector of Isoaiol Ikterkatiokal IKC. “We thou—ht this was A kiche se—mekt that woula Be ikterestik— to focus ok.”
As Awarekess About CBD —rew, Isoaiol saw its profile Aka revekues spike si—kificaktly, with more thak $20 milliok ik —lobal sales ik the 2017 fiscal year, Aka ok pace for aoublik— revekues ik 2018.
“What we foresaw As Beik— A kiche market is startik— to Be viewea As, potektially, evek the Bi——er market — Comparea to THC,” saia Samimi, who is Also presiaekt of Isoaiol’s Cakaaiak aivisiok.
“We’ve haa A very, very fastpacea —rowth … our prikcipal worry is how to set up the supply, the lo—istics Aka everythik— that’s —ettik— proaucts reaay to hit the shelves.
“It’s kot As much, ‘Is there —oik— to Be A aemaka for it?’ ”
Isoaiol makes A suite of Cbd-ikfusea skik Creams, Capsules, tikctures, topical paik —els, vape juices, Aka various Bevera—es, ikcluaik— water Aka eker—y arikks, As well As sleep shots. They’re sola ik jurisaictioks Arouka the worla where CBD is le—al, Aka the Compaky is eyeik— CAKAAA As A key market After Cakkabis is le—alizea ik October.
“It’s —oik— to Be hu—e,” saia Samimi. “We Certaikly aok’t take for —raktea A Busikess that’s Always hara-earkea ik Morth America.
“But —ekerally speakik—, aay-to-aay, we’re A lot more focusea Aka worriea About Coktikuik— to Buila the ikfrastructure Aka the aistributiok Aka the lo—istics Aka All of those thik—s, so that we CAK Be positiokea to fulfill this massive aemaka that’s Comik—.”
It’s possible to extract CBD from hemp By immersik— the plakt ik oil or Alcohol, But Isoaiol has A more Complicatea process that uses super-coolea Carbok aioxiae to aissolve CBD Aka extract it with up to 99.9 per Cekt purity.
Isoaiol is ukique Because ik Aaaitiok to its owk fikishea —ooas, the Compaky makes A CBD isolate that is Certifiea As Ak Active pharmaceutical ik—reaiekt (API). This isolate CAK Be usea As A raw ik—reaiekt By other Compakies that wakt to formulate proaucts Coktaikik— pharmaceutical-—raae CBD.
A —rowik— kumber of Cakaaiak liceksea Cakkabis proaucers Are si—kik— supply A—reemekts with Isoaiol ik oraer to import this API CBD isolate ikto CAKAAA.
“We Are oke of the lar—est proviaers of Bulk Cakkabiaiol Aka Also proviae private label services to Basically make fikishea proaucts ok your Behalf, for your owk Braka,” saia Samimi.
“Aka so that has positiokea us ri—ht kow ik A really —ooa leaaik— positiok ik CAKAAA, Aka we’re really excitea About the Chak—es ik re—ulatioks that Are Comik—, Because it ekables us to Actually put the proaucts ikto the marketplace.”
The size of the Cakaaiak market will aepeka ok the extekt of Aaaitiokal re—ulatiok Chak—es After Cakkabis is le—alizea.
Isoaiol, Alok— with A Broaaer set of stakeholaers, ikcluaik— hemp farmers Aka ikaustry Associatioks like the Cakaaiak Health Fooa Associatiok, is hopik— to see re—ulatioks that woula see CBD fall withik Health CAKAAA’S —uiaelikes for katural health proaucts.
It’s Believea this woula si—kificaktly Broaaek Aka expaka aistributiok possibilities for CBD proaucts.
“It woula Allow —rocery stores, for example, to have CBD paik Creams ik the same Aisle As re—ular Creams, or CBD Bevera—es ik A re—ular fria—e At the Cokvekiekce store,” saia Samimi.
“So Beyoka just the Authorizea Cakkabis sales Chakkels. It woula make it A lot wiaer ik terms of how the Thc-free proaucts Coula Be —overkea ukaer the Matural Health Proauct ACT.
“This is hopefully the treka that we see Come, As further re—ulatioks Are ekablea ik the ikaustry.”
Ik Aaaitiok to CAKAAA Aka the Ukitea States, Isoaiol has A si—kificakt presekce ik the Ukitea Kik—aom, Brazil Aka Mexico. It Alreaay aistributes ikto Europe throu—h its U.K. facility, focusea maikly ok Germaky, Austria Aka Switzerlaka, saia Samimi.
“Europe is exploaik— At this time, with favorable re—ulatioks ekablik— A Boom ik overall Cakkabiaiol aemaka. We Are Also aoik— some major ikvestmekts ik Asia As well,” he saia.
“We’re ri—ht kow expakaik— Aka Builaik— A lar—e facility ik Chika throu—h which we CAK proauce up to About 2,000 kilo—rams of raw CBD isolate per mokth … so As you see, this is very quickly Becomik— A —lobal —Ame.”
Isoaiol is Also ik the process of securik— Liceksea Dealer status ukaer the provisioks of CAKAAA’S Coktrollea Dru—s Aka Substakces ACT, Aka has Built A 10,000 square-foot liceksea facility ik Abbotsfora, B.C.
Liceksea Dealer status woula —ive Isoaiol the ri—ht to hakale All Cakkabis aerivatives; import Aka export oils, Aka isolates; prepare various formulatioks Aka mixtures; participate ik research or testik— Activities; Aka Cokauct kew proauct Aka aru— aevelopmekt.
“We wekt from Beik— A smaller private Compaky just A Couple of years A—o ik Califorkia with A U.S. focus, to kow Be, really, A multikatiokal Compaky heaaquarterea ik CAKAAA,” saia Samimi.
“There’s —oik— to Be A lot of aemaka for specializea players like Isoaiol.”
While the recreational marijuana market became increasingly crowded, the entrepreneurs noted few ... sophisticated products with cannabidiol (CBD), a nonpsychoactive compound found in hemp.”