Months after the league allowed individual teams to sell sponsorship deals to CBD companies, Major League Baseball now has an official league-wide CBD partner at Charlotte Web Holdings (CWBHF) .
The MLB is now the first major professional sports league to partner with CBD, marking a major milestone for the still nascent cannabis industry that can use every bit of legitimacy from mainstream culture it can get.
“As a leader in the CBD category, with products that provide health and wellness benefits, Charlotte’s Network is a welcome addition to the MLB family, and represents an outstanding partnership in baseball and sports,” said Noah Garden, MLB’s chief revenue officer.
The press release announcing the partnership did not provide financial information and described the agreement as a “historic multi-year agreement.”
The partnership announcement comes at the same time as the launch of Charlotte’s Web Sport – the Daily Edge dye that CW says is the first hemp-derived dye to be “approved for sports” by NSF – a 75-year-old global product. Agency.
Charlotte’s NSF Sports Certification Web Products® The rating has met the highest safety standards and can be promoted across MLB events and media platforms,” Garden said.
The company says its tincture supports recovery from “exercise-induced inflammation”, allowing athletes to return to the field faster while reducing the risk of re-injury.
In short, the company says that CBD helps the body manage and recover from stress, including stress from athletic endeavors.
Charlotte Webb is looking to grow its market leadership in hemp-derived products with its new sports venture.
“The CBD sports category is gaining significant momentum with the final public announcement of the MLB second quarter to approve CBD sponsorship, which, we believe, was a landmark change for professional sport and other leagues are expected to follow,” said Jared Stanley. , co-founder and CEO of Web Charlotte, during the company’s latest earnings call.
Total sales of CBD products more than doubled from $845 million before the pandemic in 2019 and are expected to reach $1.9 billion this year, according to Statista.
Data research firm Brightfield Group put out a memo over the summer estimating that CBD sales could reach $11 billion by 2027. They forecast $5 billion in 2022 sales.
Charlotte Expansion Plans
Charlotte’s Web has partnered with large entities to get her name and branding more widely.
Back in 2019, the company reached a distribution deal with Kroger (K) The largest retail grocery store in the country. At the time, the plan was for Kroger to place CW products in 1,350 stores across 22 states.
The 2019 deal pays off after Kroger announced it would buy Albertsons ACI competitor Grocery for $25 billion on Friday.
This combination will create a giant in the grocery market, with annual sales of more than $210 billion—Costco Wholesale Corporation is number three.
Kroger already has nearly 2,800 stores nationwide, and the Albertsons League will add another 2,200, many of which could see Charlotte’s web products on their store shelves soon.