Chase Terwilliger is the CEO of Balanced Health Botanicals (BHB) in Denver, CO. After graduating with an MBA from the W.P. Carey School of Business at Arizona   State University and having his medical device distribution startup acquired by Johnson & Johnson, Terwilliger sought an opportunity to become the CEO of an organization that he was confident would change the world. Since leading BHB, the team has grown from four employees to more than 100, increased product SKUs from one to over 800, and has solidified BHB as one of the top companies in the CBD market with over $60 million in 2019 sales. Terwilliger’s goal is to continue the growth of the house of brands, becoming the largest supplier of hemp-derived CBD and other cannabinoids in the world.  

He recently spoke with Happi about China's role in the global hemp and CBD market.

Happi: When did China become the world's No. 1 player in hemp?

Terwilliger:  Hemp has been produced in China for thousands of years for fiber and seed production. They recognized the versatility of hemp long ago and have such been the largest producer for some time.


Happi: How was 2020's hemp supply?

Terwilliger: Here in the US, it was very low due to being over supplied 30-fold in 2019. We have over supply here in the US, mainly because the FDA hasn’t regulated hemp-derived CBD yet. Once they do, everyone expects the industry to further take off.


Happi: There's a glut of hemp on the market right now, isn't there? What is that doing to prices? Can you give examples of how the price has come down in the past year?

Terwilliger: You’re correct. Prices are coming way down for input costs and soon this will translate into savings for the consumers. The best example is what is happening with CBD isolate (the closest product that the hemp market has to a true commodity). In 2016, CBD isolate cost $32,000 a kilogram, but now costs only $500. The good news is that US entrepreneurs are getting smarter and finding other uses for the over supplied hemp to be used—such as fiber, hemp cement and hemp plastic.


Happi: China has said it is seeking comment on cannibidiol. Will it really ban the sale of CBD? Why or why not?

Terwilliger: They may. My opinion is that it has more to do with it being a cousin of marijuana, as they are also contemplating banning products like hemp oil which only have a nutritional benefit. My guess is that the Chinese authorities have a problem differentiating the two plants—hemp and marijuana. This would be disappointing because the US has figured it out and it’s not an issue here. They will take away their citizens opportunity to improve their quality of life through a natural product.


Happi:  If a ban does take place, what will that do to the market in terms of NPD, hemp prices, etc.

Terwilliger: I don’t think it will affect the US market. I have only heard of one company since 2015 that buys their hemp from China. Since the passage of the 2018 farm bill, the domestic hemp supply is not a problem.


Happi: Back in the US, what are your thoughts on CBD? FDA appears to be letting anything go, as long as no claims are made. How does that stance impact the CBD industry?

Terwilliger: It’s not a good situation for the consumer. The consumer is very confused and rightfully so. With no regulation you don’t know what you are buying, if it is safe and if it's really even CBD. FDA regulation will solve this as it will ensure that CBD companies have the proper labeling, proper CBD amounts and that the product is made in a safe way. CBDistillery is at the forefront of pushing the FDA to regulate this industry. It’s not a want, but a need.


Happi: What does adding CBD to skin care formulas actually do for the consumer's skin?

Terwilliger:  In many ways, CBD-infused skin care products work just like any other CBD product, the tinctures, gummies, or capsules consumers might already be using. With plant-based CBD skin care, the therapeutic potential is delivered directly to receptors that may help influence the health and appearance of your skin. 

Happi: What level of CBD (%) in a skin care formula is effective?

Terwilliger: We are still trying to figure out the right amount. However, our BOTA Skin Care line has enough CBD in each product where our users are seeing phenomenal results.


Happi: What are your predictions for CBD in cosmetics during the next 1-5 years? A lot of major players remain on the sidelines waiting for regulatory clarity.

Terwilliger: I believe it will be a large category. More research and FDA regulation will allow for this category to thrive in the future.