Mr. Lahde garnered media attention for stating in a resignation letter that hemp is needed as an alternative food and energy source and should be grown again in the U.S.

who are fighting a high stakes legal battle against DEA to grow hemp for U.S. manufacturers.

The new sales data validates U.S. farmers' position that they are being left out of the lucrative hemp market that Canadian farmers have cashed in on for eleven years.

The sales data, collected by the market research firm SPINS, was obtained from natural food retailers only, excluding Whole Foods Market and mass-market food and pharmacy stores, and thus under-represents actual sales by a factor of two to three.

The new report shows that hemp grocery sales grew in the sampled stores by 65% over the previous year (from August 2007 to August 2008), or by $2.4 million, to a total of $6.12 million.

Based on the representative growth of this sample, the HIA Food and Oil Committee now estimates that the total retail value of hemp foods sold over the past 12 months in North America grew from $20 million last year to approximately $33 million this year.

In addition, the SPINS data show that sales of hemp body care products grew 10% over the past 12 months in the sampled stores to $12.24 million. Due to the large hemp body care line sold by The Body Shop, as well as the fact that many unreported leading mass-market brands of sun tan lotion and sunscreen products include hemp oil, the HIA estimates the total retail value of North American hemp body care sales to be at least $80 million.

"Farmers who want to grow hemp to support the steady double-digit growth are mad as ever about being shut out by our backward federal government," says Mr. Bronner, who makes Dr. Bronner's Magic Soaps and uses hemp oil in all his top-selling products. "The HIA is confident that the total North American hemp food and body care market over the last 12 months accounted for at least $100 million in retail sales," adds Mr. Bronner.

Over the last three years, hemp food sales have averaged 47% annual growth, making hemp one of the fastest-growing natural food categories. "Last fall we expected the double-digit growth of the hemp food sector to continue in 2008, as the excitement about hemp milk had led to more brands in the market," comments Eric Steenstra, HIA Executive Director. "We project that growth in the markets for hemp food and body care will keep pace into 2009," says Steenstra. 

http://www.marketwatch.com

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