Banking & Finance

Charlotte’s Web Holdings Financial Report Shows Progress Despite FDA Set Back

Charlotte’s Web Holdings Financial Report Shows Progress Despite FDA Set Back

Charlotte’s Web Holdings, Inc. reported consolidated revenue increasing 11.4% year-over-year to $24.2 million. Charlotte’s Web said that increased retail volumes have resulted in ongoing incremental quarterly gains in retail market share. Charlotte’s Web grew its number one market share across its core retail channels, including total US Food/Drug/Mass retail, total US natural specialty retail. Net losses were trimmed to $5.3 million from last year’s $14.4 million. 

“The ongoing economic recovery from the pandemic that began in Q1 strengthened through the second quarter, driving a 38% increase in our retail revenue as many consumers transitioned from online shopping back to brick and mortar retail,” said Deanie Elsner, CEO of Charlotte’s Web. “We believe we are best positioned to take advantage of the return to brick and mortar retail as we hold the number one share position in the food/drug/mass and natural specialty retail channels in the US.”

In disappointing news, the U.S. Food and Drug Administration released a letter telling Charlotte’s Web that it can’t put a cannabidiol product on the market as a dietary supplement. It has been the FDA’s stance since the 2018 farm bill removed hemp from the Controlled Substances Act that CBD can’t be used in foods since it’s a drug product.”

While Charlotte’s Web submitted a study showing that there were no observable adverse effects from the CBD product, it did not supply the underlying data that the FDA requested, according to the letter. “In addition, none of the provided studies addressed the issue of whether CBD affects the liver or the reproductive system.”

The company noted that the consolidated business-to-business revenue increased 37.7% year-over-year reflecting consumers returning to brick & mortar retail shopping following the economic reopening from pandemic lockdowns.

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