By / July 19, 2020

Cosmetics companies in Ecuador to introduce cannabis-based products

The production of the new hairline of Beautik Laboratories, a company that operates in Duran and has an alliance with an English consortium, began to be packaged in green containers with a cannabis leaf in the center.

The company decided to use this image to introduce to the Ecuadorian market a line of shampoo, conditioner, styling cream, and hair mask made from cannabis seed oil.

Beautik initially began producing 20,000 units of each of these products to be delivered this month to the hangers of department stores in the country.

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Ecuador’s new cannabis law is helping the cosmetic sector

The production of this new line of cosmetics comes weeks after changes to Ecuador’s Comprehensive Organic Penal Code came into effect, legalizing the planting, cultivation, production, industrialization, marketing, and export of non-psychoactive cannabis or industrial hemp.

The raw material for the cannabis used by this laboratory is imported from Germany. It is the cannabidiol component (CBD), which is the part of the plant that does not have a psychoactive effect.

To manufacture the product in the local market, the company started to explore its development since last year and had to comply with processes in the Agency of Regulation, Control and Sanitary Surveillance (Arcsa).

Gabriela Paucar, commercial and marketing manager of the company, said that this organic cannabis oil is being used in the cosmetics industry because it is rich in essential fatty acids and omega 3, 6 and 9. This oil is added to the other components from 40 degrees Celsius to maintain its properties.

“In the hair care line there is an opportunity to take advantage of the benefits of this product (cannabis seed oil), it gives a component of hydration to the scalp,” he said.

Beautik Laboratories, which manufactures other lines of perfumery, hair care, personal, and facial products, aims to make its cannabis-based products accepted among men and women 18 to 35 years.

The company currently exports to fourteen countries and this year projects sales of $6,000,000. In addition, Beautik hopes to start producing this oil in Ecuador so that the foreign currency can stay in the country.

Interest in the cultivation of cannabis is growing in Ecuador

Within the agricultural sector there is also interest in the cultivation of cannabis for medicinal use. The regulations for planting this plant, which has 100 varieties, are still pending at the Ministry of Agriculture. The deadline is October.

The National Association of Flower Producers and Exporters of Ecuador (Expoflores) has held seminars to analyze aspects of cultivation, the regulatory framework, and the experience of Colombian flower growers in the cannabis industry.

Alejandro Martinez, executive president of Expoflores, explained that there is some interest in flower growers because certain processes and technification of the flower sector could be used in the management of this crop.

“What we have been doing is training those interested in the agricultural and scientific aspects of the crop in an open manner, to learn about the advantages and difficulties,” said the union leader.

A businessman interested in cannabis cultivation indicated that he would like to explore the medicinal part, but the investment and regulations that are about to be issued should be analyzed.

In this aspect, legal studies are promoting criteria with the private sector to get the state to issue regulations regarding the medical use of cannabis.

Companies are looking for legal advice in order to jump into the cannabis industry

Law firms in Quito and Guayaquil have begun to provide services for companies and entrepreneurs who are planning to enter the cannabis and hemp industry.

Falconí Puig Abogados incorporated into its service the Cannabis and Hemp Department, which is led by Cecilia Falconí Pérez, partner of the firm.

The lawyer said that in the regulatory area they are already working with sanitary registrations for food and cosmetic products. They are also advising on corporate aspects, the entrepreneurs who intend to enter this industry.

In addition, she explained, they are promoting participation in dialogues between private enterprise and the State to generate agreements regarding the planting, harvesting, production, export, import, and marketing of cannabis products.

The firm is working with the Quito Chamber of Commerce to provide legal and technical advice on the cannabis cluster.

In Guayaquil, GS Legal Advisory Group created a unit to provide comprehensive advice on medical cannabis and industrial hemp. Paulo Salas, executive of that firm, said they provide services in-licensing and project planning.

Through a unit they have called Cannagreen Ecuador, he said, they are working on importing seeds. “We are close to having a bank of certified seeds from origin, in the country where the seeds are produced, and we are going to give advice on the cultivation process,” he said.


(Featured image by fotostrobi via Pixabay)

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