CBD companies are becoming some of the richest companies in the world and have officially begun to enter the world of professional sports. Here's why.
The CBD industry is booming. The market is expected to reach $22 billion of annual profit for the year 2023.
With so much cash circulating, it's no wonder CBD companies are looking for ways to invest. One popular avenue is in the professional sports arena, gaining CBD brands a lot of attention and millions of new followers in the process.
Aurora Cannabis, one of the leading cannabis producers and distributors in North America, recently signed a partnership agreement with the UFC to conduct research involving the use of CBD for muscle recovery and athletic performance.
Alexey Oleynik, one of the UFC's top fighters, recently earned a sponsorship from TFMG Alternative Harvest ETF MJ, one of the largest investment funds focused on the marijuana market.
But it's not just cannabis producers and investment funds focusing on major sports sponsorships: CBD brands themselves have plastered their branding on baseball players' uniforms, painted logos on the sides of race cars, and imprinted their branding on the canvas of the UFC octagon.
In this article, we'll explore some of the leading companies in the field of professional sponsorship. We'll discuss who they sponsor and what this means for the industry as a whole.
First of all, why do CBD companies sponsor sporting events and athletes?
Corporations have sponsored sporting events for decades. Currently, there are hundreds of companies that sponsor sporting events, spanning all types of businesses.
Everyone from insurance and banking to shoe and apparel manufacturers is sponsoring athletes, teams, or leagues.
Why do they do it?
Companies choose to sponsor sporting events for two reasons: to boost brand awareness and simply because it's fun.
Let's look at the first one in more detail.
Large-scale sporting events can attract millions of spectators. Participating in sports sponsorships allows brands to reach a broader audience who might not normally encounter their products or services.
Sponsorship allows fans to become familiar with the brand while watching the chosen sporting event. Humans are creatures of the familiar. When faced with a choice between a brand we're used to seeing on our team's jersey or something new, we'll likely go with what we're familiar with. It's one of the simplest marketing tactics.
Sponsoring international sporting events also benefits a company's reputation on the global stage, which in turn drives more sales by solidifying the brand's credibility with potential customers.
A recent report published in the Harvard Business Review entitled "How global brands compete"He noted that most people believe that large companies offer a higher-quality product. So, if a company can position itself as a global brand, it gives them the added illusion of being higher quality than their competitors.
As the CBD market continues to grow and attract ever-increasing profits, it's no surprise that these companies are ramping up their marketing strategies by spending millions on sponsorship deals, if only to compete with other global CBD brands.
CBD companies are sponsoring professional athletes
TO As CBD supplements continue to generate interest, companies operating in this space are competing with other well-established companies for the global market. To compete, companies like this one will need to enter larger arenas to reach ever-larger audiences, spending hundreds of thousands, even millions of dollars in the process.
Here are some of the top CBD companies sponsoring professional sporting events:
1. cbdMD
cbdMD CBDMD is one of the biggest names in the CBD sector. They produce a variety of products made for athletes, such as their CBD Freeze line of topicals. These roll-on or squeeze bottle topicals are designed to relieve muscle and joint pain and speed recovery after injury or a rigorous workout. The company also makes tinctures, capsules, gummies, bath bombs, and even CBD products for pets. Recently, cbdMD signed a partnership agreement with the MMA organization, Bellator, which is one of the top MMA leagues in the world. Bellator is owned and operated by Viacom Inc. cbdMD President Caryn Dunayer was recorded during a press release saying that the goal of the partnership is to "educate athletes and fans about the many benefits of CBD." This new agreement will give cbdMD in-ring advertising rights and provide fighters with CBD-infused products to aid post-fight recovery. On a related note, cbdMD sponsors other athletes like Bubba Watson, a professional golfer who plays on the PGA Tour.
It looks like this international CBD brand will be expanding into more athlete-inspired CBD products in the near future, so stay tuned.
2. Infinite CBD
Infinite CBD is one of the leading manufacturers of athletic-inspired CBD products. They make several CBD shots designed to aid in both recovery (Rest Shot) and training (Energy Shot) from an athletic training regimen. The company sells products like its Nano Freezing Point cream to soothe sore muscles and a Nano Enhancer for adding CBD to your pre- or post-workout shake. Infinite CBD was recently acquired by Wealthcraft Capital Inc. by $2.5 million dollarsAs a CBD brand that specializes in athletic support, it's fitting that the company also sponsors a handful of MMA fighters, boxers, and other athletes.
3. Flav
Flav is an important player in the sports world. They sponsored the first High Rollers BJJ Tournament, a cannabis-infused Brazilian jiu-jitsu tournament, fighters smoke cannabis before competing to win a pound of high-grade marijuana. Eddie Bravo served as the event's master of ceremonies.
This tournament was called "The Best Martial Arts Tournament in the World."
This company offers a variety of CBD products, including tinctures, time-release capsules, vape cartridges, metered-dose vapes, gummies, and chocolate bars. Its line is geared toward the everyday CBD user, but it also offers a handful of athlete-specific products, such as its CBD transdermal patch and topical gels.
Flav is big in the MMA world and has an impressive lineup of sponsored athletes in the space.
4. DEFY
DEFY is an American CBD company specializing in hemp-infused sports drinks. They call these concoctions “hemp extract performance drinks.” Founder Terrell Davis began using hemp extracts like CBD in 2017, which he says “changed his life forever.” This experience led him to create a line of hemp extract drinks with one purpose: to enhance athlete performance and recovery. DEFY is new to the professional sports industry but is starting to make a name for itself. They are a major sponsor of Arrow Schmidt Peterson Motorsports, an IndyCar Series contender. This is the top tier of Formula 1 racing in North America. The team behind DEFY is working to secure more sponsorships in the professional sports arena in the near future; stay tuned.
5.Lazarus Naturals
Lazarus Naturals offers a diverse line of products including CBD oils, topicals, isolates, capsules, and more. The company is known for its price and quality that's hard to beat. Lazarus Naturals entered the world of professional sports sponsorships with its hometown baseball team, the Portland Pickles. Although financial details are being kept secret, the two-year sponsorship with the Portland Pickles is reported to be is significantAs part of the agreement, you can purchase Lazarus Naturals products at Walker Stadium.
The future of CBD is sport
CBD has many reported benefits and has the potential to reach billions of dollars in sales annually in the coming years. As CBD companies grow each year, they are forced to compete with other established industries through high-level sports sponsorships.
Sponsorships like this give CBD companies a much broader audience around the world and increase brand popularity.
We're excited to see companies like Medterra, Infinite CBD, cbdMD, Flav, Lazarus Naturals, DEFY, and more entering the professional sports arena. As CBD enthusiasts, we're even more excited to see new and innovative products as a result.
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