When fashion and lifestyle brand Kenneth Cole decided to launch a line of CBD products, it researched the market, looked for a company to partner with, and came across Hemp2Lab.
The Rossville-based manufacturer of CBD products and nutraceuticals had seasoned leaders, and its own liposomal delivery system, Element6. It had a 10,000-square-foot facility, where it had brought the entire production process under one roof.
Impressed, Kenneth Cole entered discussions with Hemp2Lab’s team, trying various products and doing due diligence. Then, it came to a significant decision — the brand chose to enter an exclusive, five-year licensing agreement with Hemp2Lab, which would be the manufacturer of its CBD-infused skin care and therapeutic line.
“That was an epic moment for our company because it validated all the hard work that we put in,” Bill Margaritis, Hemp2Lab’s president and CEO, told MBJ. “It was very uplifting and motivating to the team, for us to be selected. … That was a big confidence booster.”
Creating the product line
Scoring the licensing agreement, though, also meant developing a line that a high-profile brand like Kenneth Cole would be willing to put its name on. As Margaritis explained, the deal challenged the business to elevate its “own game and capabilities.”
Hemp2Lab and Kenneth Cole mutually selected products, going through many iterations of each one. They tried different formulations, with texture, color, and scent all acting as key variables. The groups had noticed that some competing products had an odd scent and were oily and brown, which Margaritis believed could be “a bridge too far for most consumers.”
So, they developed white, water-soluble products without oily textures.
“There were some real big hurdles to overcome, from a formulation point of view,” Margaritis said. “It forced us to really innovate, change some of our conventional thinking, and really raise the bar on this new generation of skincare.”
Kenneth Cole's CBD products
That bar raising has led to Kenneth Cole’s CBD line, which is part of its new wellness collection and has six offerings: Clean Slate, a facial cleanser; Save Face, a daily facial moisturizer; Dream On, an anti-aging night serum; That’s Better, a muscle relief cream; Feel Good, a joint relief salve; and Easy Glow, a replenishing eye stick.
The products are free of chemicals and parabens and use Hemp2Lab’s liposomal delivery system. And though currently only for sale online, the plan is for them to be placed on the shelves of major department store chains.
The partnership could also bring significant benefits to Hemp2Lab.
“It gives us an opportunity to grow revenue and profitability, but it also elevates the brand and can potentially open up additional opportunities for us,” Margaritis said. “It gives us the ability to bring more innovative products to market, and then puts us on the top-tier retailer department store shelves. … It's a big credibility boost for us.”
This isn’t the first notable deal struck by Hemp2Lab. In early August, the company announced it was working with WWE heavyweight champion Bill Goldberg to launch a new line of wellness products designed to maximize nutrient delivery and athletic performance. And that same month, Hemp2Lab revealed it had struck a deal with The Vitamin Shoppe, the New Jersey-based retailer of nutritional supplements.
Industry challenges
The partnership with Kenneth Cole, however, comes at a time when the CBD industry is facing headwinds.
In 2018, Congress legalized CBD and hemp-derived products through the passage of the Farm Bill. As the New York Times reported in January, though, the Food and Drug Administration (FDA) has asserted it lacks the authority to regulate these products, and asked Congress to give it a stronger regulatory framework that addresses health claims and safety concerns within the CBD industry. Previously, CBD products had been regulated in the same way as dietary supplements and additives, but the FDA says they shouldn’t be placed in this category.
And though the FDA isn’t preventing CBD products from being sold, it wants more legislative direction from Congress on how to proceed going forward. Margaritis does see this as a macroeconomic challenge facing the CBD industry — and one that could affect it until the FDA and Congress develop a new strategy.
