From misfits to partners. Organising the industry


Challenge

In 2016, the Medicines and Healthcare products Regulatory Authority (MHRA) formed the opinion that CBD products were medicines, this is how they were marketed, advertised and sold to the public.  As such they wrote to 24 companies advising them to follow the law to the letter and remove those products from sale.

This general outlook from the authorities threatened to shut down a new but fledgling industry. Less than £10M of sales was at play at the time, but the growth potential was impressively high and risked closure. There was no organisation able to represent and defend the industry and nothing in place to provide a sensible interface between individual entrepreneurs and government agencies.

Action by the CTA

The CTA was created, formed by a few entrepreneurs willing to represent and organise itself. It contacted the MHRA and arranged meetings. The goal was to offer relevant knowledge about the industry as well as a pledge of self-organisation, which included a complete stop to the medicinal representation of CBD products.

Results

The CTA has become the de-facto partner organisation in the eyes of the MHRA for anything related to CBD.

Three years later, there are over a million people taking CBD in various forms; the industry saw a 1,100% growth, now selling over £110M of products in 2019. Only a handful of companies were addressing the market, now there are hundreds. They are not all members (yet!), but most are compliant and benefit from the rules and regulations set out by the CTA.