Lifestyle, Products and Services

Nestlé and Other Big Food Conglomerates Enter the Cannabis Market

April 16, 2021 03:30 pm ET
Nestlé and Other Big Food Conglomerates Enter the Cannabis Market

With the cannabis industry growing bigger and more popular, it is no wonder that the cannabis edibles and beverage industry would follow suit. The cannabis compounds, cannabidiol (CBD) and tetrahydrocannabinol (THC) are increasingly becoming available in an array of mouthwatering foods and beverages, including the likes of chocolate, coffee, energy drinks, wine, ice cream, and honey. Now, big-name food conglomerate companies are trying to enter the cannabis market in order to appeal to this increasing consumer base. 

The cannabis food and beverage market has seen a big growth and is predicted to have grown, and will grow, by 25.4% from 2019 to 2025, according to Financial News Media. This growth is estimated at a value of $11.5 billion, making it a no-brainer to jump on board this gravy train if possible. While many major food and beverage companies such as Coca-Cola and Hershey Co, have expressed their interest in incorporating CBD but action is yet to be seen from many clothes players. 

Ben & Jerry’s CBD ice cream caused a lot of excitement amongst cannabis and ice-cream lovers. Now, Nestlé, a big-time beverage, and food conglomerate is looking to enter the cannabis market along with the likes of Kraft Heinz, Molson Coors, Moosehead, Carl’s Jr, and Seneca Foods.  As far as international reach goes Nestlé has provided many countries with delicious beverages, cereals, chocolates, confectionery, baked goods, frozen food, supplements, baby food, instant foods, and even pet food. 

Nestlé Joins the Cannabis Industry 

The Swiss multinational food and drink processing conglomerate corporation is home to many loved and well-known food and beverages including KitKat and Smarties, Nesquik, Milo, Nescafe, and Nespresso, Cheerio’s, Maggi noodles as well as Nestea. Nestlé has around 447 factories that operate in 189 countries and even holds shares in other large companies such as L’Oreal. 

Nestlé was formed in 1905 as a merger between two companies owned by George and Charles Page, and Henri Nestlé. Now, this Switzerland-based company has introduced a line of CBD-infused products through one of their brands known as Garden of Life. The Nestlé owned Garden of Life includes CBD liquid drops, CBD whole hemp extract spray as well as CBD PlantGel softgels. Garden of Life has said that it will be partnering with Geocann, and Pure Encapsulations, in order to work together for cannabis formulations and drug delivery systems in order to provide the best products. 

George Behar, the CEO of Nestlé Health Services SA, explains that Nestlé will be the first to offer a “national supplement brand” which supplies CBD oil. Mr. Behar also explains Nestlé will be setting the right standards in CBD products due to:

Having third-party testing and certificates of analysis is essential for consumer satisfaction as this offers certainty in the sense of getting what one is paying for. There is an alarming quantity of products that advertise at inaccurate potencies or contents.   

One of the products, called “Hemp Max with VESIsorb”. will provide 25mg of CBD per capsule- which is the highest potency among leading (professional) brands. VESIsorb is the product delivery system, which Dr. Nina Bailey states, has the ability to mimic the “body’s natural uptake mechanism”. By making use of VESIsorb, the body is able to absorb it more easily than most other delivery systems. 

Taking CBD to the International Market 

Geocann, who partnered with Nestlé’s subsidiary, stated that the first large-scale batch from this product was produced in Switzerland in September 2020. The Geocann founder and CEO, Jesse Lopez, stated that “we are extremely proud to expand our relationship with Nestlés health-care professional brands into Europe after their success in the U.S market this past year”. The Nestlé, or rather Garden of Life brand, has launched a line of broad-spectrum CBD softgels, liquids, and sprays in America 2019, but will now be entering European, South African, and many other international markets. Dr. Behar also explains that the plant used in the products are sourced from America’s very own soil. 

The CEO of Geocann states that Nestlé’s team’s “validation of science-backed and clinically-proven hemp products is an important milestone for our industry and provides exceptional credibility to the therapeutic benefits of cannabinoids formulated with VESIsorb”. Additionally, Dr. Barry Ritz, stated that “our relationship is built on relentless effort to ensure these are the most science-backed CBD products in the world, setting the benchmark for what consumers expect and healthcare professionals demand”. 

While these CBD products may not be the first of their kind, they are definitely products worth keeping an eye out for. After all, there is nothing more important than your health, which in terms of cannabis products, one should be able to trust the product being consumed. Geocann is set to release their studies supporting the efficacy of CBD and its products. This is a great win for the cannabis industry as CBD products cross international borders as well as delivering much-needed research. 

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