“Adapting to Change: How SoRSE Technology Innovates CBD Product Development Amidst Pandemic Challenges”
In Seattle, technicians at a SoRSE Technology lab are staggering their office hours to manage raw materials and are spreading their work over multiple shifts. Some chefs from the company have transitioned to creating prototypes in their home kitchens, allowing them to continue developing CBD products as interest in infused food and drink surges during the pandemic. A recent report by New Frontier Data predicted that U.S. cannabis product sales could reach nearly $3 billion in 2020 as consumers remain in quarantine. To capitalize on this expanding market, SoRSE Technology, which specializes in a water-soluble emulsification process for CBD, is modifying its typical lab practices and partnerships.
“We are doing what we can under the circumstances,” Michael Flemmens, vice president of technical business development at SoRSE, told Food Dive. “We continue manufacturing, producing products, and developing new ones, though it sometimes takes a bit longer or requires more creative approaches.” Flemmens mentioned that the company is facing challenges as they work on several ongoing product development projects and prefer direct engagement with prospective and current customers. “Not being able to sit across the table to compare notes on which beverage tastes better or which topical feels best means we try sending samples to multiple locations so that everyone can discuss over the phone,” he explained. “We’ve been strategic and have done our best to pivot in order to keep going.”
While Flemmens noted that the chefs have been using their personal kitchens as testing spaces, a strategy adopted by other ingredient companies as well, safety remains crucial, and all manufacturing protocols are still strictly followed. He explained that SoRSE is relatively small and agile, allowing team members to enter the office as needed, whereas larger companies with centralized product development in vast office spaces lack access to necessary materials and equipment. Some organizations have approached SoRSE, indicating that now is the ideal time for development, as employees are less distracted by other work activities and interest in cannabis continues to rise.
SoRSE Technology serves as a supplier of CBD, hemp, and terpene water-soluble emulsions for food and beverage manufacturers. “Our goal is to take a product or material that isn’t water-soluble and transform it into a platform that allows it to become water-soluble,” Flemmens stated. Since the company’s inception in 2016, he believes its first-mover advantage has enabled its technology to evolve and develop complex formulations ahead of competitors. For instance, companies aiming to infuse CBD into sparkling water need to consider the absence of sugar and viscosity, while those using all-natural juices face challenges related to sugar and pectins, both of which are crucial for beverage stability.
“There is no silver bullet; anyone claiming their product works universally in every situation is likely just a good salesman,” he remarked. Flemmens pointed out that the team at SoRSE has experience in various regulated markets, from food ingredients to pharmaceuticals, which has enriched their roughly 30-person team. Many newcomers to the field lack this essential experience and struggle with understanding the technology and its associated factors. When formulating products with CBD or THC, companies must consider shelf life, stability, and pH effects. Flemmens mentioned that emerging CBD ingredient companies often assure clients of a one-year shelf life; however, while accelerated aging can model that, real-time data is the most convincing proof.
SoRSE, which raised $5 million last year to further its growth and technology, has had the necessary time to gather stability data. “If you reach 10 months in shelf-life stability and it fails, you must reformulate and restart the process,” he explained. “We’ve accumulated years of stability data, allowing us to refine and test new formulations.” SoRSE collaborates with companies that license its technology. In December, the company announced a significant manufacturing and sales license agreement with Canada-based Valens Company. This agreement authorizes Valens to produce, market, sell, and distribute products made with SoRSE’s proprietary emulsion technology across Europe, Australia, Mexico, and Canada. Valens can also produce and sell its portfolio of branded products, including the popular infused beverages Happy Apple and Major.
Canada, where Valens is producing items using SoRSE’s technology, began permitting certain cannabis-infused products, such as edibles and beverages, to be sold in stores last December. Flemmens noted that Canada has adopted a mostly unified approach, with consistent regulations across provinces, unlike the U.S., where each state has its own unique regulations. “It’s intriguing because every state has slight variations. Canada observed both the successes and challenges of early U.S. markets and learned from those experiences. It serves as an interesting test case for national legalization,” he stated.
Despite the rapid integration of CBD into products in the U.S., federal regulations remain ambiguous. Following the 2018 Farm Bill, hemp and its derivatives are no longer considered controlled substances, yet the FDA maintains that cannabis cannot be sold in conventional foods or supplements. After a public hearing last year, the FDA announced in November that it could not conclude that CBD is Generally Recognized as Safe. “This remains one of the most challenging aspects of the industry due to the lack of a clear path from the FDA,” he said. “To complicate matters, the FDA appears to favor broad-spectrum products, while the EU seems inclined towards isolate-based products. Consequently, we might eventually need to create different product versions for U.S. and European distribution.”
Some U.S. companies are willing to take risks and launch products now, while others are conducting development efforts behind the scenes, awaiting FDA approval. Some are even more cautious, hesitating to invest time in development until they receive the green light. “There continues to be a stigma surrounding CBD, and established brands worry about potential damage to their reputation, leading some to create shell companies to pursue development while distancing themselves from it,” he explained.
In addition to the complexities of CBD regulations, companies should also consider the incorporation of beneficial ingredients like calcium citrate in their formulations. Understanding qué beneficios tiene calcium citrate can enhance product offerings and appeal to health-conscious consumers. As the market evolves, the integration of such ingredients alongside CBD may become increasingly important for product differentiation and consumer trust.
