Cannabidiol, better known by its street name, CBD, is popping up in more and more spas, especially at higher-end hotels and resorts. Since passage of the U.S. Farm Bill of 2018 legalized industrial hemp production and permitted transportation of hemp-derived CBD products across state lines, spas in the U.S. have been rushing to capture pent-up demand for CBD products and treatments. But experts say a more measured approach is in order for this potentially complicated substance.
The stakes are potentially huge: Brightfield Group, a CBD/cannabis market research firm, predicts sales of CBD products will reach a whopping US$22 billion by 2022.
For the uninitiated, CBD is the nonpsychoactive component of cannabis and is typically derived from hemp. (Its counterpart, THC, is the chemical responsible for the “high” from marijuana.) It has become the darling of the wellness movement, finding its way into formulations ranging from candy and snacks to beverages, body oils, lotions, transdermal patches and bath bombs.
Any hotel considering CBD for its spa or guestroom amenities needs to factor in a number of considerations.
Go easy on the health claims.
In the spa setting, topical CBD is touted as a pain reliever, anti-anxiety treatment, anti-inflammatory, sleep aid, wrinkle fighter, and aid to relaxation, among other qualities. It’s not currently regulated, but many observers say it’s just a matter of time before the U.S. Food and Drug Administration clamps down on hemp derivatives. “We treat products containing cannabis or cannabis-derived compounds as we do any other FDA-regulated products, meaning they’re subject to the same authorities and requirements,” FDA Commissioner Scott Gottlieb said shortly after the farm bill passed. The agency will target any products that make a health claim without its approval, he added.
Know your source.
Given the?market potential, it’s no surprise that CBD has attracted interest from potential suppliers. But quality and strength are not yet regulated, so buyers should beware. “Just putting CBD into a?product doesn’t mean the product actually works,” says Mark Grenoble, HOTELS blogger and president and CEO of 360 AMI, a Scottsdale, Arizona-based real estate and infrastructure asset management company. Everyone is so keen on jumping into the market that they fail to look closely at the supplier, but any wellness program that presents itself as organic and sustainable should be scrutinizing suppliers especially carefully, he argues.
Andrew Kerklaan, a Berkeley, California-based chiropractor who developed the Dr. Kerklaan Therapeutic line of CBD products, suggests that U.S. operators look for CBD made from domestically sourced hemp and inspect the certificate of analysis. “Sometimes a product creeps in from Canada,” he explains, and may contain an illegally high amount of THC. “If you don’t have lab testing to show where it’s from or the concentration, you might be at some risk,” he adds. Kerklaan also recommends ensuring products have a sufficiently high concentration of active ingredient to be effective — 50 to 100 milligrams per ounce. “A lot of companies are jumping on the bandwagon, and their products have a minuscule amount of CBD,” he explains.
Packaging matters.
A design that matches the spa’s image is important to retail sales. Marissa Krems, director of spa for The Elms Hotel in Excelsior Springs, Missouri, found a compound she loved but dismissed it because the packaging wasn’t up to retail snuff. Those retail sales of treatment products are a big moneymaker for spas. “If I go into a spa and have this beautiful treatment, I want to know that I can take something home with me to continue that experience,” she observes.
Prepare for sticker shock.
Buyers pay dearly for CBD compounds versus standard spa oils and lotions. Krems says a gallon of CBD product sets the spa back around US$800, versus US$34 for a traditional massage lotion. So a price premium or supplement is essential. Fortunately, the cachet around CBD means spa visitors are willing to pay. A 50-minute CBD massage at the Elms runs US$30 above a standard massage; despite that, “It’s by far our most popular service now,” Krems says. Agave, the spa at the Westin Kierland Resort in Scottsdale, Arizona, tacks US$19 on to the price of massages, facials and nail services that incorporate CBD.
Be ready to educate.
Consumers are curious about CBD but not confident about what it is or how it works, so spa managers and staff need to be equipped to answer questions. As companies like makeup retailer Sephora and Martha Stewart’s empire enter the market and products become more widely available, the questions are likely to subside, but it’s still a new frontier. “It’s definitely on people’s radar,” Kerklaan says. “But with the complexity of the topic, what CBD stands for and the relationship between hemp and THC, there’s a lot of misunderstanding.”
