Rite Aid (NYSE:RAD) announce on Thursday morning that the company will begin selling CBD products in its stores this month, while also phasing out e-cigarette products.
The Camp Hill, Penn.-based drugstore chain revealed it plans on selling CBD creams, lotions and lip balms in Washington and Oregon starting this month. CBD is a cannabis-derived product that may help with insomnia, pain relief and more, but does not have the intoxicating effects of THC.
“Rite Aid has heard from many customers about their interest in purchasing CBD products,” the company said in a statement. The business is following the initiative of other drugstores that are planning on rolling out CBD products as well, including Walgreens and CVS.
The company is launching these items in more than 200 stores across the two northwestern states. CBD derived from hemp was legalized last year, but the FDA says companies still can’t add it to food or sell it as a dietary supplement for now.
Rite Aid also said the business will stop selling e-cigarettes as we are facing a teen vaping “epidemic,” but the company will continue selling cigarettes. “While many feel [e-cigarettes] are beneficial to those of legal age who are trying to quit the use of tobacco, we have made the decision to remove all electronic cigarettes and vaping products from our offering at all Rite Aid stores,” Chief Operating Officer Bryan Everett said.
RAD stock is down about 10.1% on Thursday.