Charlotte’s Web Holdings (TSX: CWEB) (OTCQX: CWBHF) reported final hemp planting for its 2019 growing season.
Total acres planted for 2019 has been increased to 862, a 187% jump from 300 acres planted in 2018, the company said, noting the move was needed to meet growing demand from consumer and retail channel partners.
The company produced 41,000 lbs., 63,000 lbs. and 675,000 lbs. of dried hemp biomass in 2016, 2017 and 2018, respectively.
“Interest and demand for our products has been exceptional and growing rapidly. Our 2019 planting strategy ensures we will have the required raw materials to deliver on production targets for Charlotte’s Web products through 2020 and into 2021,” Deanie Elsner, the CEO of Charlotte’s Web, stated.
“Our leading CBD hemp varieties under cultivation today are the foundation of our 2020 production plan. Tens of thousands of Americans have come to rely on Charlotte’s Web products daily making it essential that our products are always available, efficacious and consistent day-to-day, bottle-to-bottle, year-to-year,” Elsner noted.
Charlotte’s Web Hemp Cultivation
Charlotte’s Web grows more hemp than it needs for the subsequent year to minimize the impact of farming risks and product shortfalls against forecasted rapid market growth. Dried hemp can be stored for years, with even more longevity in its extracted form.
The company cultivates hemp outdoors in various regions across the U.S. to hedge against potential weather risks and other crop related impacts.
Of the 862 acres planted, 166 (19%) are in Colorado, 325 (38%) are in Kentucky, and 371 (43%) are in Oregon. The Colorado farms are operated by the company’s cultivation team while farms in Kentucky and Oregon employ family-owned contract farmers, supporting the important American agricultural economy through hemp farming.
All acres are cultivated using natural farming methods. An active supporter of organic farming, up to 457 acres, or 53% of the total acres planted for 2019 are designated for USDA organic certification, with additional organic expansion planned in subsequent years.
The company grows several hemp varieties, all of which contain high levels of CBD content but only trace THC amounts of less than 0.3%. Hemp varieties with high CBD potency reduce the amount of biomass required for CBD extracts, allowing for responsible farming practices by maximizing the production of cannabinoids, terpenes and other beneficial botanical compounds.
The company offers full quality control beginning with testing of the soils before planting and the water used for irrigation. By the time customers receive their product, they have typically been tested more than 20 times through the cultivation and manufacturing processes.