On May 8, the US Food and Drug Administration (FDA) presented updated guidelines for supervision. The guidelines effectively mean increased requirements for technical age verification and stricter product standards, which in turn paves the way for a wider range of approved products on the market.
The decision is seen as a step towards a more predictable market where control increases as the sector matures. The changes are expected to lead to a rapid increase in the supply of products, which will affect both physical stores and e-commerce players.
E-commerce retailer Haypp Group is said to have invested significant resources in building an organization that can meet higher demands for law and logistics, which can now pay off as the market opens up to more legal alternatives.
Haypp Group is in a good position to meet the growing demand as the availability and innovation of products continue to increase in the US market, says Gabriel De Prado, CEO of the US operation.
Specifically, the company has secured its business model by staying one step ahead in matters relating to age controls and product quality. It has, among other things, developed technical solutions that can ensure that only adult customers can complete purchases, which is a large part of the new US requirements.
But the work is not over. While the federal regulations from the FDA are being set, companies like Haypp Group must continue to navigate between different laws at the state level. Requirements may vary between different areas of the US, which requires a flexible supply chain and a system that can handle local restrictions in real time.
Success in the US has become an engine for the entire group. Recently, it became clear that the company reached a turnover of SEK 1 billion during a single quarter.