With CBD seeming to be the powerhouse cannabinoid of 2019, California based CBDfx has been steadily growing its portfolio both in product offerings as well as big-box retailers willing to carry them. We sat down with (insert name), CEO of CBDfx to talk about how the brand came to be, and where they are heading in the future in this exclusive interview.
MRR: Can you talk a little bit about the background of CBDfx and what the inspiration behind the brand is?
CBDfx: Of course. CBDfx is actually a daughter company of NEwhere Inc., and NEwhere is actually one of the most successful brands in the vaping industry. Six years ago now, back in 2013, we started hearing a little bit about CBD and the potential benefits of it. We knew that CBD could be vaped, so we went ahead and launched our first product that same year. It was a simple vape additive that you could add to any e-liquid that you like, and that’s how the brand actually started. If you fast forward a couple years, CBDfx has turned into more of a lifestyle brand. We have developed close to a hundred different SKU’s varying from gummy bears, to tinctures, capsules, topical products, face serums, just a bunch of different products that are more high-end and lifestyle oriented. We’re a completely different brand than what we were back in 2013 when we launched.
MRR: What did you wanted to accomplish with CBDfx when you were first coming to market?
CBDfx: So our goal has always been, and this is part of our mission statement, to offer products to everyone. Not just the guy in a vape store or only people in the counter-culture industry. Our mission has been to develop products that are mainstream with a more natural branding to them, and then to follow up with all the compliance documents and lab reports for all of the products. You have to have that if you want to make this available for everyone and that’s what’s happening right now. That’s also why you’re seeing us heavily investing in topicals and ingestibles instead of new vape products.
MRR: Can you kind of walk us through what your R&D process is for bringing a new product onto the market?
CBDfx: So right now a lot of people and companies are talking about vertical integration. We do everything ourselves. We do gummy bears, we do pet treats, we do topicals, we do whatever the product is in-house. We believe that in order to get the strongest product portfolio we have to work with the people that are experts and have the history in the industry and the abilities to create awesome products. So if you take our gummy bears for example, we are working with a contract manufacturer that has done it for almost 20 years. The same applies to all the topical products. We work with people that have done it for many, many years, people that are capable both on the R&D side, but also on the manufacturing side in order to come up with the products that are consistent and high quality. That’s how we were able to basically catapult CBDfx from being just a vape brand to being a more all encompassing lifestyle brand.
MRR: As more big box retailers like Kroger come online and as more and more consumers move into the alternative cannabinoid market, what is your strategy moving forward in taking on new retailers?
CBDfx: So obviously the first goal has been to establish legitimacy because, you know, six years ago the entire CBD industry was more of a counterculture thing. There are still brands out there doing, well I wouldn’t necessarily say shady stuff, but we want to set ourselves apart from our competitors by being the most compliant and buttoned up operation possible. That’s why we put QR codes for our lab reports on our products and we’re fully transparent about our supply chain.
I think that’s why we have such success with the bigger retailers because they’re new to this industry and they don’t want any surprises. We pride ourselves on doing the full panel of tests of the end product on every batch. We spend upwards of 30-40 grand a month just on lab reports and it’s something that we’re not really required to do, but we’re doing anyway just to be transparent and to differentiate ourselves from everybody else.
MRR: Can you walk us through how you determine which retailers to go with?
CBDfx: Well we bid out to retailers and try to figure out like what their goals are and see if CBDfx aligns with those goals. A really interesting partnership is Urban Outfitters. You have a high hopes for that partnership because you’re gonna see CBDfx products branded alongside other high end topical products in a really cool store setting. Obviously however, the end goal is to be in at least a handful of the domestic big box stores and Urban Outfitters and Kroger’s are definitely two of the many targets that we have.
MRR: What are you guys looking forward to in 2020?
CBDfx: I would say consolidate the big box store framework and just make sure that it’s available to every single consumer across all of the states that we’re targeting. You’re going to see CBDfx in a lot more stores than just Urban Outfitters and Kroger’s moving forward. We are also going to be focused on innovation. That’s what we’re known for. We were the first brand to launch a 100% natural gummie bear with no corn syrup and the full spectrum CBD oil infused into the product that has catapulted us into a different league and that’s the product that we’re known for.
But you’re gonna see us develop a lot more SKU’s that are unique and different. We are also going to to focus a lot more on other compounds in the hemp plant that could be beneficial, not only CBD. So that’s the next exciting step. Because right now obviously all the praises are about CBD, but what people don’t realize is that there are a lot more benefits to the plant than just that molecule.