ASEAN

Big companies foray into untapped cannabis-related market

BANGKOK: Thailand's move to legalise cannabis is drawing big companies from the beverage, entertainment and consumer product sectors into the business of producing cannabis-related products.

Several such Thai companies are now foraying into this new untapped market as the possibilities are huge and the government is also promoting the industry as a cash crop and an export-oriented product.

Thai direct sales company Giffarine Skyline Unity Co marketing director Pongpasu Unaphom said its research and development team was speeding up the development of ready-to-eat food products and beverages with cannabis as a key ingredient.

"A majority of people hope to use cannabis-based products to benefit their sleep, but manufacturers are limited because the quantity of cannabis allowed in products is still controlled by the Food and Drug Administration (FDA)," he said.

According to a Bangkok Post report, he believes that health trends and the benefits of cannabis and hemp seed oil will fuel demand for products made from the plants.

"We launched a premium toothpaste with hemp seed oil to the market last month. We can sell around 20,000 tubes of toothpaste, up from the 15,000 we projected," he added.

The company plans to launch food and beverages with cannabis as a key ingredient in the second half of the year.

On June 9, Thailand removed cannabis from its Category 5 list of banned or restricted narcotics and allowed people to grow an unlimited number of the plant at home.

However, people are not allowed to use it for recreation purposes and it is only allowed for health and medical purposes.

Those keen to cultivate the plant need to first register with provincial administrative organisations, or with the FDA.

Any products made using the plant ingredients cannot have more than 0.2 per cent of tetrahydrocannabinol (THC), the main psychoactive compound in cannabis.

Anything above this level will result in it being classified as a Category 5 substance and regulated under laws pertaining to narcotics control and suppression.

Those who want to grow cannabis plants for commercial purposes have to seek permission from the authorities to do so.

Boonyong Tansakul, chief executive at Zen Corporation Plc, the operator of Tummour chain of restaurants and Khiang street food, said the company was set to use cannabis in its menus.

"We have launched our Tummour fermented fish sauce with cannabis this month and will use cannabis instead of basil in some menus of Khiang street food if there is enough supply," Boonyong said.

"The new law will allow many industries to use cannabis as an ingredient in their products, such as candy, chocolate, chewing gum, cosmetics, bakery products and beverages."

Hokkaido Food and Beverage Co marketing director Kanwara Kiratisaevee, said the company launched a Marucho snack with terpene flavour in January this year to test the market response. The company markets the Marucho snack brand under TOA Group.

"We will take time to study the market response and watch whether the popularity of cannabis-related products will be sustainable," Kanwara said.

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