December 2019 SPRAY 43
Another trend is personal fragrances that are inspired by cannabis
but don’t actually contain any. Precisely formulated cannabinoid
prestige skin care products, backed by science, will lead the
Skin Wellness trend, while aromatherapy products with terpenes
such as mists and candles will be another major trend.
Challenges include advertising; it is not easy to advertise CBD
products and many online ads get denied. Additionally, CBD is
an individualized experience based on one’s genetic makeup, so
more dedicated scientific research concerning dosage is needed.
Another challenge is that CBD production is an unregulated
industry—there must always be third-party testing with Certificates
of Analysis (CoA). Most products on shelves are mislabeled as to
potency of product.
Finally, banking and merchant services are also a challenge;
they consider CBD producers “high risk accounts” and charge
high fees.
Experiences with cannabis/CBD are guided by our DNA; diet
and lifestyle choices also play a role in how we experience cannabis.
The future is going to be based on genetically aligned formulations
for “Cannabinoid Wellness” products because “cannabis is
personal,” concluded Cravitz.
Kitty Oliver, Manager, Consumer Products
Enforcement Section, California Air
Resources Board (CARB) presented “Ensuring
a Future of Clean Air: California’s
Consumer Product Regulation.” CARB
enforcement is necessary because although
the majority of businesses comply, some
don’t and non-compliance undermines
regulations. An effective program must
assure emission reductions are achieved;
ensure manufacturing, distributing and selling
of non-compliant consumer products is
more expensive than compliant products and protect compliant
companies and products in the marketplace.
In 2018, 43 consumer product cases settled with close to
$2 million in penalties with violations across all categories of
consumer products. Enforcement is intended to be fair, so that
everybody plays by the rules. Compliance is expensive, so no one
should get a pass. The goal is a mutual settlement, to deter repeat
violators and to encourage compliance. If settlement cannot be
reached, a legal approach must be considered.
In the future, CARB will have an increased focus on internet
sales; it will continue to work with large retailers on inventory
methods to ensure only sales of compliant products and it will
implement significant updates to consumer product regulation.
Doug Raymond, Raymond Regulatory Resources, presented
“Achievable Goals & Influencing
Change.” CARB has been regulating
aerosol products for 31 years, said Raymond,
adding that an achievable goal in
California is a viable product, one that
consumers will buy and re-buy. Reasonable
expectations need to be set for
viable products. It pays to review current
inventory, CARB data and competitors’
comparable products.
To influence change, one should research
the history of regulation on a particular
product category and be involved
in the process. Review all product data and requirements from
CARB. Show up at CARB meetings, as being there is half the
battle. Meet with staff to educate them; they respond positively to
“show-and-tell.”
Raymond reminded attendees that CARB will extract the
emissions tonnage from aerosol industry formulations “with us or
without us.”
Steve Hunt, Shipmate, presented “E-Commerce: Global Opportunities.”
The U.S. Commerce Dept. reported in 2017 that
department store sales, which peaked in 2001, have been crushed
by E-commerce, plunging 35%. The global aerosol market size is
anticipated to reach almost $98 billion by 2025 and is projected
to register a Compounded Annual Growth Rate (CAGR) of
5.49% during the forecast period.
Rising demand for aerosol products from various end-use industries
such as personal care, household, automotive, industrial
and medical is anticipated to drive the growth. By volume, aerosol
household products accounted for 31.2% of the worldwide market
share in 2018.
By finding ways to minimize your own shipping costs, you can
reduce shoppers’ delivery fees, build a positive brand image and
keep customers long-term, as consumers are more interested in
free shipping and on-time delivery. There are huge opportunities
for sales and growth for aerosol-related businesses, particularly
in Health & Beauty, but air transportation and small package
delivery services’ requirements must be taken into consideration.
E-commerce is driving retail, so be aware of the many shipping
requirements and be compliant.
Charlie Vallely, Smarter Sorting,
presented “E-Commerce for Regulated
Goods.” Smarter Sorting classifies and
marks containers so computers can read
safety data sheets, etc., on product labels
for E-commerce. There are more regulations
than ever before; they are complex
and ever-changing. At the heart of it all
is the cost of misclassification, which
can lead to an extra $500+/pallet to ship
a product. Smarter Sorting can classify
correctly, annihilate overspending and
leverage exceptions for Ground, Air & Sea by offering easy communication
of data and easy access to the classifications that drive
bottom lines across multiple industries.
Howard Ray, Clean Earth presented
“The Best Way to Predict the Future is
to Create it.” Those who benefit from a
“Recycle & Reuse” policy include manufacturers,
whose components get back into
commerce with reduction of landfill and
environmental liabilities, following the U.S.
Environmental Protection Agency (EPA)
hierarchy for management. Having a “No
U-turn” market protects the brand and supports
a corporation’s sustainability plan.
Customers benefit from a reduction in
long-term liabilities, potential reduction in regulatory paperwork
and regulatory taxes (state-dependent), sustainability goal attainment,
good community relations and a “No U-turn” market.
The environmental benefits are via the re-use of natural
resources, reduced landfilling, no long-term degradation exposure
and a reduction of carbon footprint.
Potential solutions for industry include the creation of end
markets, support of statewide recycling programs, government
regulatory changes and a change in collection methods. Ray noted
Oliver
Raymond
Vallely
Ray