Cannabis News
No, Celebrity Brands Don’t Outperform Traditional Cannabis Brands
Published
1 year agoon
By
admin
MJ BIZ recently reported that celebrity-endorsed cannabis brands like Houseplant by Seth Rogan and Khalifa Kush by Wiz Khalifa have the undeniable advantage of leveraging their vast fan bases and social media followers to capture consumer attention and generate excitement.
Wait a minute, I thought celebrity brands and co-branding by celebrities didn’t move the needle much on cannabis sales?
Previous articles on Cannabis.net like “Your Celebrity Branding Doesn’t Mean S#$%#”, or the Bloomberg news piece called “Celebrity Star Power Has So Far Had a Limited Impact on Cannabis Sales” both paint a different picture of the effectiveness of celebrity brands in weed.
What is going on then? Do celebrities bring enough juice to a brand to boost sales over time? Every customer survey done of cannabis buyers says that consumers care about three things, price, effect, and distance or time needed to get the product. Consumers don’t remember logos or colors or brand names, they do remember how much they paid, did the product work as expected, and how long or how much hassle was it to get said product.
Let’s dissect the MJ BIZ article to see if the headline matches the data.
It didn’t take long to get past the headline and find some “ah-ha” moments. To start:
A recent analysis of retail sales data from Headset indicates that these inherent qualities and other factors, such as promotional events and partnerships, significantly drive consumer purchases.
The first noticeable “asterisks” to the story, if you will, is that promotional events and partnerships SIGNIFICANLY drive consumer purchases of these brands. Reading between the lines means if Mike Tyson shows up at a dispensary or venue, his brand sells out that day. If Justin Bieber shows up to promote his pre-rolls at an event, the pre-rolls sell out that day. So having the celebrity actually there signing autographs and pushing his or her product is a big sales driver. Makes sense, but not repeatable on a daily basis with consumers. This is the Amazon Prime day example, when Amazon runs a 48-hour July special to get a massive consumer spending push. It pulls revenue from past and future sales for Amazon as consumers wait for Prime Day to buy something, or speed up a future purchase to get the discounts from Prime. It is a push-pull effect on sales, robbing Peter to pay Paul as they say.
Then the smoking gun pops up on consumer preference and celebrity branding. To whit:
Interestingly, celebrity brands tend to offer lower price points than their traditional counterparts, with Headset data revealing that they charge less than the average of $23.14 per item set by traditional cannabis brands.
Hold the fort. That is data that is congruent to every consumer study and survey done in Canada or the US. Forget the word celebrity for a second, “brands that offer lower price points…get more sales”. So, are consumers buying celebrity brands or are they buying brands that offer lower price points? Past data says consumers care about price points very much, branding not so much. So, is this a cause of celebrity causation being confused with correlation? It is a common misconception in statistics gathering, causation and correlation, did something actually cause an effect or is it just correlated with the results you are looking at. In this case, it sure appears that celebrity branding is a correlation to consumer choosing the lower price point product, not a causation of why someone bought a product.
Did someone buy a Ric Flair Drip gummy because it was from Ric Flair or because it was 36% cheaper than the traditional, non-celebrity brand next to it on the shelf? ($14.91 vs. $23.14) If Ric Flair is at your dispensary that day promoting his product as mentioned above as an “event”, then it is a no-brainer what the 50-person line out the door is going to buy and get autographed that day. Again, a one-time event is not repeatable over time. If Ric Flair is not at the dispensary on a regular day, is the consumer buying X brand 10mg gummies for $14.91 or comparable product at $23.14? Data says the consumer will look at price point and effect first and foremost.
The MJ BIZ article reports that during the first three months of 2023, the study compared over 20 celebrity brands to a representative sample of more than 1,300 traditional marijuana brands.
So, comparing the top 20 celebrity brands to the entire field of 1,300 marijuana brands is a fair statistical parameter? Seems like someone is cooking the books to get the results they want from the survey. Why not do the top 20 celebrity brands vs. the top 20 or 40 traditional brands to make it a fair fight, or to get a statically accurate “apples to apples” comparison? I’ll take Backwoods vs any celebrity brand, let’s compare numbers. You want to have an educated discussion about branding in the cannabis industry, let’s talk Cookies, not Justin Bieber’s Peaches.
There are well known lists of “zombie” brands that have run out of money and don’t do any marketing in California. Keeping them in the data pool will certainly bring down the numbers of traditional brands and boost the “appeal” number of celebrity brands.
Comparing 20 celebrity brands to 1,300 traditional brands isn’t a fair comparison. Someone should have cut it to at least the top 50 selling traditional, non-celebrity brands, to get an accurate comparison on how much influence a celebrity really has on consumer choices in a dispensary.
In the first quarter, celebrity brands in the California market, including Cann, Houseplant, and Mirayo by Santana, outperformed traditional cannabis brands by a significant margin, as reported by Headset, a cannabis analytics provider based in Seattle.
Headset’s findings indicate that traditional brands achieved an average monthly sales figure of $26,591. However, at least nine celebrity brands surpassed this figure, with five generating monthly revenues well above the $100,000 mark.
Again, would love to know the above sales number for just the top 50 traditional brands like Backwoods. What are we guessing that number jumps up to we eliminate 1,000 zombie brands in California? Well over the $100,000 mark just like the top 10 celebrity brands are doing I would bet.
The Celebrity Phenomenon in California’s Marijuana Market
Cann, a popular marijuana beverage producer endorsed by Hollywood celebrities, influencers, and professional athletes, has far outperformed traditional cannabis brands by a staggering margin of almost 30-to-1.
This one is probably true because Cann is a carbonated infused beverage. High moats in that area, capital intensive to get started, tough for competitors to ramp up in that area. Is Cann super successful due to the celebrity part or just because they are “the only game in town” in that niche and well capitalized. Did the execute a successful business plan or get the right celebrity? I am going the latter.
Notable investors and brand ambassadors for Cann include actress Gwyneth Paltrow, entertainer and comedian Rebel Wilson, and former NBA player Baron Davis.
Mitchell Laferla, a data analyst at Headset, shared via email with MJBizDaily, “From my perspective, several celebrity-affiliated brands have achieved remarkable success compared to typical cannabis brands in California.”
Are those several celebrity brands selling at a 36% discount to the market like Ric Flair Drips, as well? If so, that may help explain their “remarkable success”.
From a business standpoint, celebrity-endorsed brands have a unique advantage in opening doors and establishing connections with potential partners, enabling them to create distinctive promotions and foster meaningful customer interactions. Drew Punjabi, the brand manager of 22Red, a California cannabis lifestyle brand founded by entrepreneur and System of a Down bassist Shavo Odadjian, emphasized this point.
From the consumer perspective, the presence of celebrities in retail stores is highly sought after and plays a crucial role in driving engagement and, ultimately, sales, according to Punjabi. He highlighted the significance of influence in 2023, stating, “Celebrities possess that valuable connection with their fans and followers.”
Ahhh, the presence of the actual celebrity in the retail store is a highly sought after thing and plays a crucial role in sales for that celebrity brand. Well, yeah, if Mike Tyson will be your budtender Monday to Friday, 8 to 5, you are going to sell a lot of Tyson Bites and his brand will sell very well.
“In an industry where physical, in-person retail sales remain paramount, having the ability to attract hundreds of people to a dispensary for meet-and-greets or events tied to product promotions or new releases is a massive advantage,” Punjabi added.
Beating a dead horse now, game, set, match.
A New Approach to Celebrity-Backed Cannabis Brands
According to Headset, Los Angeles-based Cann has established itself as the dominant brand in celebrity endorsements, achieving impressive average monthly sales of $751,760 in California during the first quarter.
Early in its journey, the company partnered with Imaginary Ventures, a New York-based venture capital firm renowned for its successful contributions to Good American and Skims celebrity apparel brands.
Interestingly, Good American was co-founded by Khloé Kardashian, while Kim Kardashian founded Skims.
Rather than relying on celebrities already associated with cannabis, such as rapper Snoop Dogg or country music icon Willie Nelson, Cann opted for a different approach.
“We believed that if we could secure a mainstream celebrity who isn’t typically associated with cannabis, we could revolutionize the conversation and normalize it in a fresh and impactful manner,” explained Luke Anderson, co-founder of Cann.
“We successfully conveyed that cannabis is for everyone, not exclusively for those seeking an intense high.”
Ahh, low dose cannabis beverages are very popular and a booming niche, agreed. Celebrity causation or correlation here?
Challenges of Sustaining a Celebrity Brand
Working with celebrities poses unique challenges beyond the typical obstacles faced by cannabis companies.
According to Black, one of the top challenges is overcoming consumer perceptions. These perceptions cover a wide range of factors, including product quality, brand authenticity and celebrity partnership authenticity, retail prices, and celebrity involvement in the company’s operations.
Wait, consumers are questioning if celebrities are really involved in a brand or just sold their likeness and image to a brand for a quick buck? No way!
For Black, brand stewardship and the “do no harm” principal guide most of his decisions. He aims to preserve the 52-year legacy of Cheech and Chong without making any detrimental missteps.
Running a celebrity brand comes with immense pressure, with unexpected incidents, scandals, and the potential threat of “cancel culture” being significant concerns for operators in this space.
Last year, Tyson was involved in a physical altercation with an unruly passenger before Tress invested in Tyson 2.0. Despite the incident receiving national attention, Tyson’s image remained largely unscathed, showcasing his enduring popularity.
However, despite the pull of celebrities, consumer awareness of celebrity-endorsed brands varies across different markets. According to Madeline Scanlon, cannabis insights manager at Brightfield Group, over 80% of California cannabis consumers are unaware of brands like Cann and Houseplant and their celebrity affiliations. This suggests that factors like product positioning, marketing strategies, and operational efficiency play a more significant role in achieving success, as Scanlon emphasizes.
Wowza! The headline of the article is celebrity brands are killing it because of celebrities! What does Madeline mean that most consumers are unaware of what celebrities promote what brands, but instead look at product placement, pricing, and how easy or hard it is to get the product. How dare she! That would be 100% the opposite of the article headline would leave you to believe.
Being a celebrity alone is not enough to succeed; a truly successful brand requires additional components beyond celebrity endorsement, Scanlon asserts. A celebrity brand’s relevance often depends on the longevity and continued significance of the celebrity associated with it.
You mean no one under the age of 30 knows who Ric Flair or Cheech and Chong are right now? That could be a longevity problem for a brand, too.
This challenge is consistently faced by the executives behind Garcia’s Hand Picked, which ranks No. 7 on the list with monthly sales of $80,587 in the first quarter.
The brand, a division of the vertically integrated company Holistic Industries, pays tribute to Jerry Garcia, the iconic frontman of the Grateful Dead and a symbol of counterculture. Garcia passed away from a heart attack in 1995.
Winning over Deadheads, a famously opinionated and anti-corporate community, is impossible. They demand high-quality cannabis flowers, unique strains, and a constant flow of new products, known as SKUs (stock-keeping units), according to Kyle Barich, the chief marketing officer at Holistic, based in Maryland.
“Much of my professional life involves catering to this challenging audience,” Barich noted.
Recently, the brand wrapped up significant sponsorship at The Peach Music Festival in Scranton, Pennsylvania, where its logo was prominently displayed on signage and on one of the main stages. This marked a significant milestone for the company as it crossed into mainstream music events.
Ahhh, one time music festival push, got it.
Holistic takes responsibility seriously in the Grateful Dead realm and collaborates closely with the Garcia family trust and foundation on matters such as SKUs, merchandise, branding, marketing, and other business decisions.
“We are incredibly privileged to have the opportunity to honor the legacy of Jerry Garcia, whom we all deeply admire,” Barich expressed enthusiastically.
Bottom Line
The headline highlights the significant impact of celebrity endorsements in the cannabis industry. By reading through the article the reality of the data supports what we already know and what consumers are saying in surveys. Celebrity brands have demonstrated their ability to attract consumer attention, drive sales at events the celebrity is at, and outperform traditional brands when every traditional brand is put in the data set, but is not a true comparison when you compare the top 20 celebrity brands to 1,300 non-celebrity brands. Leveraging the influence of celebrities, some brands have successfully navigated challenges, including consumer perceptions and market awareness. However, it is crucial to recognize that celebrity endorsement alone does not guarantee success, in fact, just the opposite. Additional factors such as product positioning, pricing, marketing strategies, and operational efficiency also play a vital role in achieving sustained growth and brand recognition. Celebrity brands must adapt and maintain relevance as the industry continues to evolve to ensure long-term success in this competitive landscape.
THE MYTH OF CELEBRITY BRANDING IN CANNABIS, READ ON…
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Cannabis News
Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em
Published
15 hours agoon
November 13, 2024By
admin
On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!
Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:
- Panelists:
- Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
- Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
- Fred Rocafort: Trademark attorney working closely with the cannabis team.
- Election Results Overview:
- Most 2024 cannabis ballot measures did not pass.
- Florida, South Dakota, and North Dakota saw failures.
- Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
- Federal and State-Level Developments:
- Medical use is currently legal in 38 states, and 24 states allow recreational use.
- Republican support for marijuana legalization is growing.
- Federal Policy Implications:
- Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
- Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
- International and Domestic Trade:
- Schedule III status could ease import/export restrictions on cannabis.
- Unified control of House, Senate, and presidency might expedite legislative progress.
- Economic and Industry Impact:
- Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
- Federal legalization and banking reforms are crucial for industry stability and growth.
- Future Outlook:
- The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
- State-level initiatives and regulatory developments will continue to shape the industry.
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
PEE IN A CUP COMING UP, READ ON..
Cannabis News
Is Kratom Addictive? Understanding Dependence, Risks, and Safe Usage
Published
2 days agoon
November 12, 2024By
admin
Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.
From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.
However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.
Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.
Understanding Kratom: Origins and Prevalence
Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.
The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.
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From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.
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Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.
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As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.
The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.
Is Kratom Addictive: Investigating the Substance’s Nature
The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.
How Kratom Works in the Brain
Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.
Patterns and Consequences of Long-term Use
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Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.
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Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.
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Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.
Assessment of Addiction Risks
Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.
Physiological Effects: Kratom’s Impact on the Body
There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.
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Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.
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Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.
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FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.
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Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.
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Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.
Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.
Conclusion
Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.
Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.
When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.
The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.
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