Kemin enters hemp-CBD space with Luxiva distillates range

The new range, which is branded Luxiva, includes two hemp CBD distillates:

1. A full spectrum cannabidiol (CBD) distillate (0.3%) extracted from hemp stems, leaves and flower of Cannabis Sativa​. It contains a minimum of 60% CBD content with a total THC content of less than 0.3%.

2. A full spectrum CBD distillate (0.1%), which contains a minimum of 60% CBD content with a total THC content of less than 0.1%.

The extracts are being sourced via the company’s partnership with Wisconsin-based Driftless Extracts LLC. Kemin announced a strategic investment in Driftless earlier this year​.

Driftless Extracts, based in Lone Rock, Wisconsin, sources its hemp from growers located in the so-called Driftless and Central Sands growing zones in Wisconsin.  The company operates from a LEED-certified Gold facility in Wisconsin and aims to establish a renewable materials industry within the Great Lakes manufacturing sector that marries natural hemp materials and manufacturing.

“Certification by a credible source”​

“The Kemin team is excited to announce that Luxiva hemp CBD distillates are now available to help our customers elevate their health and wellness innovation products,”​ said Tyler Holstein, Global Product Manager, Kemin Human Nutrition and Health.

“The line includes two new products that are USDA-certified organic and fully traceable to hemp farms in the Midwest United States. Kemin ingredients are made in facilities with third-party GMP (Good Manufacturing Practices) certification and products that conform to the law and requirements governing hemp to help customers get new products to market quickly. ​

“They provide the added benefit of certification by a credible source—something that CBD consumers look for when making their purchase decisions.”​

Both extracts are described as being derived from fully traceable hemp grown in the US, are non-GMO, vegan, kosher, and USDA organic certified.

Market​

CBD and hemp have experienced stellar growth in recent years, and sales of dietary supplements with hemp-derived CBD ranked number one in the natural channel in 2019 and were number 9 in the mass channel, according to the American Botanical Council (HerbalGram 127​​). Total sales for the two categories were $126.6 million in 2019.

However, 2020 was tougher year for hemp and CBD, with HerbalGram 131​​ reporting that sales of dietary supplements with hemp-derived CBD in the mass channel shrank 30%, dropping it to number 16 on the rankings. The products retained their number one status in the natural channel despite sales decreases of 37%. Total sales across the two categories were almost $84 million.

Some market-watchers remain bullish, with the Nutrition Business Journal​ reporting that U.S. sales of hemp-CBD products (not just dietary supplements) were $803 million in 2020, with the category expected to reach $1.2 billion by 2023.