Will Sales of Weed-Infused Beverages Overtake Beer, Wine and Spirits?
Competition is about to become fierce.
As we know, US states are legalizing cannabis for adult use at a steady pace. In every new legal market, there are consumers who have never experienced cannabis consumption. Beverages could represent a familiar and easy delivery system for new users.
Last April in Denver, Jake Bullock, CEO and founder of Cann, a cannabis-infused beverage company, said "beverage is one of the fastest-growing sectors within the cannabis industry," reported New Food on Tuesday.
"We're trying to create something new, we're trying to create something unrestricted that hasn't been done before. If you follow down the path of cost or commercialization, you're more likely to create something that has been done before," Bullock said. "The firm's goal is not to attract cannabis smokers from their joints, but rather alcohol drinkers from their beers."
A Growing Movement
In places where recreational cannabis is legal, THC-infused beverages often share the shelves with beer, wine and other drinks. Should alcoholic beverage producers worry about competition from weed-infused beverages? Experts in these industries answered these questions in a report published in November 2021, by winemag.com
Colleen McClellan, regional director of client solutions for Datassential, a leading food and beverage insights platform, expects business opportunities in the THC-infused drinks space. "I think as more states relax the regulations, we will continue to see an increase in interest and use," said McClellan, who is a trained sommelier.
Last January, in a report issued by Reportlinker.com, the global market for cannabis beverages was estimated at $799.8 million in 2020 and is projected to reach a revised size of $2 billion by 2026, growing at a CAGR of 16.9%, according to the "Global Cannabis Beverages Industry."
According to the report, the alcoholic segment is readjusted to a revised 15.7% CAGR for the next 7-year period. Meanwhile, the non-alcoholic segment is projected to grow at a 17.5% CAGR to reach$1.6 billion by 2026.
Cann's recent oves
Last February, Cann, confirmed a $27 million Series A funding round from fresh institutional capital, existing investors like Imaginary Ventures and a roster of new celebrity investors including Nina Dobrev, Adam Devine, Zoey Deutch, Jordan Cooper, Sara Foster, and Rosario Dawson.
In addition to this milestone funding round, Cann was also announcing its first international expansion with the brand's launch in Canada.
"Over three years ago, we were told that consumers didn't want cannabis in beverages and that they were, at best, a novelty, but this fundraises and our Canadian expansion indicate that microdose beverages are here to stay," Jake Bullock stated. "Adults everywhere are desperate for an alternative to alcohol that actually delivers a social buzz and puts flavor first, full stop."