The homepage for Edibles.com, the hemp marketplace from the parent company of Edible Arrangements
Source: Edible Brands
The parent company of Edible Arrangements is moving into a different kind of edible.
Edible Brands is launching Edibles.com, an e-commerce marketplace for hemp products, like Cann drinks and Wana gummies.
The 2018 Farm Bill legalized hemp, which is legally defined as a plant that contains 0.3% or less tetrahydrocannabinol, or THC, the primary intoxicant in cannabis. The federal law paved the way for companies to sell products with THC derived from hemp rather than marijuana across most states, even if those areas haven’t legalized marijuana.
A handful of states, like Connecticut, have placed restrictions on how much THC a hemp product can contain. But in much of the country, hemp legalization has led to a veritable Wild West.
“There’s a lot of demand for hemp products out there right now, but what people are looking for is that safe and trusted place to buy it,” Edible Brands CEO Somia Farid Silber told CNBC.
The website launches on Friday, starting with Texas. The company is planning to roll out the platform nationwide quickly, with Florida, Georgia and other Southeastern markets following soon after Texas.
Edibles.com also has a lease for a brick-and-mortar location in Inman Park in Atlanta and plans to add physical locations in other states, as well.
“This is a defining moment for the hemp industry,” Cann CEO and co-founder Jake Bullock said in a statement. “A trusted, high-quality marketplace like Edibles.com has the power to reshape the future of THC products and drive the long-term industry growth we’ve all been working toward.”
As a private company, Edible Brands does not have to disclose its quarterly financial results. The business, best known for its fruit baskets inspired by floral bouquets, had nearly 800 locations as of the end of 2023.
While cannabis remains illegal at the federal level, 24 states have legalized it for recreational use. Legal retail sales were projected to surpass $32 billion in 2024, with roughly 14% — or $4.5 billion — coming from edibles, according to a study from cannabis-focused software company Leaflink.
Growing a new business
The idea to sell edibles has been percolating “for a while,” according to Silber.
A year ago, the company acquired the edibles.com domain name after settling a years-long lawsuit against World Media Group for “cybersquatting,” or registering a well-known domain name in the hopes of reselling it for a profit.
By July, Edible Brands hired cannabis executive Thomas Winstanley as executive vice president of Edibles.com. And in October, Silber took the reins as CEO after eight years at the company.
“We positioned it as a way to be able to create that connection for people who may be looking for permission to try these things, who’ve been hearing about them,” Winstanley said. “But it’s different when you walk in and see these products at a gas station, instead of seeing a collection of the nation’s leading products.”
For one, the dosage of Edibles.com’s offerings hover around five milligrams per serving, according to Winstanley. The dose is considered on the low end; Colorado, for example, caps edible cannabis products at 10 milligrams of THC per serving
Plus, when selecting its suppliers, the company stuck with companies that are well known in the hemp and cannabis industries in order to increase trust in the platform. Brands sold on Edibles.com include Cantrip, 1906, Cann and Wana.
Those suppliers went through a tough compliance audit and questioning to make sure their production and sourcing were above board, Winstanley said.
And it isn’t just suppliers who have to worry about compliance.
Edibles.com will fulfill its online orders using its existing franchise system. The Edible Arrangements franchisees who participate will allow the nascent business to offer same-day or next-day delivery, just like it does with its fruit baskets or chocolate-dipped strawberries.
“With our franchise network that we have today, we can cover 70% of households in the U.S. within an hour,” Silber said.
Edibles.com has done “extensive” compliance and background checks to make sure that the operators involved understand the requirements of delivering its edibles, according to Winstanley.
Select products will also be available for nationwide shipping even before Edibles.com expands to other markets.
Ahead of the official launch, Edible Brands is already looking to the future, with bold expansion plans.
Its future slate could include making its own edibles.
“That’s another extension that we’re actively working on in real time,” Winstanley said.
Less likely is a collaboration between Edibles.com and its sister company. However, Silber said that the initial marketing will play into long-running questions from Edible Arrangements customers about why the company doesn’t sell the other kind of edibles.
