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Archives March 2021

Welcome to the Cannabis Beverage Association!

March 30, 2021 |by Jim Baudino | 0 Comments | Blog | , , , , , , , , ,

The Cannabis Beverage Association (CBA) has made tremendous strides since its inception in 2019. We started as a small group of passionate cannabis-beverage entrepreneurs and business operators who recognized the potential of the infused-beverage category, but also saw and experienced many severe challenges that would stifle the category’s growth.

Some of those challenges include:

  • Regulatory hurdles including burdensome labeling and packaging restrictions;
  • Arduous and unprecedented testing standards;
  • Disparate testing methods across labs leading to costly trial and error searches for reliable labs testing;
  • Limited consumer and dispensary-buyer awareness or understanding about infused-beverages;
  • Low industry-wide standards for infused beverage consistency and food-safe manufacturing practices;
  • Unsuitable infrastructure for infused-beverage throughout the supply chain;

Cumbersome and expensive protocols for procuring samples for marketing and testing.

As an association, we’re taking these challenges head-on by building a coalition of stakeholders who share our vision for the future of cannabis and infused-beverages and our passion and drive to influence change, so that we can, as Vertosa puts it: #infusetheworld. You can see in our purpose, vision and mission, that we’re steadfast at our core:

Purpose: We believe in the power of infused beverages to de-stigmatize and broaden cannabis use.

Vision: We aspire to a world where cannabis is federally legal, access is not restricted, and beverages are the leading method of cannabis consumption.

Mission: Our mission is to unite cannabis beverage stakeholders and advance the collective interests of the industry through advocacy and education, providing an alternative method of consuming cannabis in a socially acceptable manner with products that provide a safe and enjoyable experience for consumers.

We have lofty goals and the plans in place to achieve them. The following initiatives will be a focus for this year:

  • CBA Legislative Agenda – to influence regulatory and legislative changes including a platform based on educating policy makers, regulators, and legislators.
  • CBA Website Enhancements – the driving force behind membership growth as well as the platform to deliver value to our members.
  • Consumer Awareness and Education Campaign – The goal is to bring awareness and education to consumers about infused-beverages (eg, “Got Milk” campaign). See the first add in LA Weekly’s Best of Cannabis edition (Pages 36-37)
  • Thought Leadership – through events and content, the CBA will offer guidance and value from the industry’s leaders on topics ranging from developing drinks to manufacturing and marketing them.

CBA Seal of Approval – a program we’re building to create standards and certifications for operators in the space, starting with infused beverage testing. In partnership with TraceTrust, we’re conducting a study to understand the disparities across labs for testing beverages.

We hope you share our excitement about infused beverages! We appreciate you subscribing to our Newsletter, and we encourage you to join us, as a member, in paving the way for this category to thrive!

Member Spotlight

From concept to market-ready, Spacestation offers turnkey contract-manufacturing and co-packing solutions for companies seeking to develop cannabis-infused consumable products. Our full-service product development strategy and manufacturing capabilities take your cannabis-infused product to market faster and more effectively.

Contact: Macai Polansky

CBA President

Co-founder Spacestation Mfg. / Spacestation Distro / Nectr / Matt’s High Soda

Macai is a cannabis industry veteran with experience in cannabis cultivation and processing, manufacturing, distribution and non-storefront home delivery. He got his start in the industry, pre-regulation, during the Prop 215 era. When MMRSA and Prop 64 passed, he got involved in the early stakeholder meetings with the state and then helped found the California Cannabis Couriers Association (CCCA). During his presidency, the association successfully lobbied the State to create a license type for non-storefront delivery businesses, helped create the cannabis delivery ordinance and tiered license fees in the City of Sacramento, as well as helped fight the winning battle which ensured borderless statewide delivery. Since then, he co-founded Spacestation Mfg, the state’s first contract manufacturer focused solely on infused-beverage as well as Spacestation Distro – a beverage centric cannabis distributor focused on paving the way for the infused beverage supply chain. Lastly, he founded the CBA and has aspirations of seeing infused beverages in bars and traditional retail, alongside alcohol, as a safer alternative for all occasions.


COVID led to a $2 Billion Projection for Cannabis Infused Beverages

March 30, 2021 |by Jim Baudino | 0 Comments | Blog | , , , , ,

More and more people want their drinks cannabis-infused. That’s one message entrepreneurs are finding easy to swallow in the pandemic.

The year 2020 may go down as the worst in memory, but not for cannabis beverage manufacturers and brands.

According to a report by Prohibition Partners, the global cannabis drinks market was projected to be worth $1.82 billion by year’s end. The next report should confirm if these numbers were met. The number was driven by consumers looking for cost-friendly relief from the current COVID-19 pandemic.

Why are so many obeying their thirst?

“When facing an economic crisis, consumers will be more willing to buy less costly luxury goods,” says Stephen Murphy, Managing Director of Prohibition Partners. “Cannabis-infused drinks are an ideal example of this and Prohibition Partners has found that cannabis products are expected to benefit from this period of self-isolation.”

The stockpile effect

Consumers are stockpiling cannabis products in a bid to ensure that their supplies are secured indefinitely. As part of the “home entertainment line-up” in regions where cannabis is legal, beverages can expect to benefit from this trend in hard times to watch more television and spend more on little extras for their in-home leisure. The stressors of note for 2020 proved to be a boost for cannabis-based products. Despite the economic downturn, cannabis recorded impressive growth as consumers looked for products to help them relax and de-stress and as the most popular format, drinks were one of the greatest beneficiaries.

Related: Coronavirus Spikes Demand For Cannabis Delivery As People Stockpile Products

“Being a firm believer that infused-beverages are the best and most enjoyable format for cannabis consumption, I’m not surprised,” says Macai Polansky, founder of Cannabis Beverage Association and co-founder of Spacestation. “Beverages are the most ubiquitous consumer packaged goods found around the world. Everyone on this planet drinks something and in most social situations, a beverage will be found in peoples’ hands. I look forward to the day that cannabis-infused beverages can be consumed at bars and restaurants and are more widely available to the masses.”

Consumer demand is rising

The report found that one in four consumers or would-be consumers of other cannabinoid-based products would be willing to try cannabis-infused drinks, and 28 percent of people who have already tried infused beverage consumers said they intended to buy more infused consumer goods in the coming three months.

Claire Birks, Prohibition Partners Senior Analyst says “The global drinks market may be large but overall industry growth is slow with some analysts forecasting annual growth at around just 3%. Our research has found that cannabis-drinks, however, are poised for much bigger growth and point towards an almost 45% compound annual growth rate for the cannabis-infused segment of the drinks industry.”

Says Murphy, “We are on the cusp of a drinks revolution, for hundreds of years, legal socializing has either involved alcohol, or sobriety; outside of caffeine and nicotine, ultimately you either got drunk, or you didn’t. The emerging cannabis drinks market is one of the most exciting sectors within the beverage industry; cannabis infusion will truly disrupt the drinks market and become a highly lucrative source of revenue for those who embrace it.”

Aaron Silverstein, Managing Director of BevZero told Green Entrepreneur that “Cannabis beverage products that can replace alcoholic drinks, such as wine or beer, are more necessary right now during the COVID-19 pandemic than ever before.”

He pointed to a statement issued by The World Health Organization indicating that alcohol use could weaken the immune system, and that heavy alcohol use increased the risk of some of the most severe complications of COVID-19.

For this reason, consumers are turning to beverages like House of Saka’s non-alcoholic cannabis-infused Chardonnay and Cann Social Tonics to replace their alcohol consumption with cannabis options that are familiar and meet many of the same needs.

Drinking isn’t smoking

As a respiratory illness, COVID-19 made people think twice about how they chose to consume cannabis products. People are still avoiding smoking and vaping in favor of other formats such as edibles, including drinks. Furthermore, governments throughout the globe will be searching for ways to bolster flagging economies and cannabis-infused beverages have the potential to deliver.

“Consumer demand has driven exponential growth in new and novel beverage categories like kombucha, flavored sparkling waters, and functional teas. Cannabis beverages are an obvious extension of this industry-moving consumer trend. I look forward to driving the same explosion in cannabis beverages that we’ve seen with past hot beverage trends in the grocery aisles, ”said Judy Yee – CEO / Co-Founder of KZen

Stress drinking is real

Prohibition Partners also found that working parents were particularly responsive to beverages; 2020 saw them take on the roles of worker, teacher, and parent all at once. This may explain why 70 percent of people who reported that they are likely to buy more infused products in the following three months, have children under the age of 18. Parents may need an outlet to provide a form of escapism or herbal self-medication during the crisis. This is likely to also be a key reason that more than half of those who intend to purchase more cannabis-infused drinks in the following three months were ages 25–44.

Federal US Government Statistics from April 2020 showed a rise in stress-drinking directly resulting from the global pandemic and this has been mirrored across much of the world. Furthermore, a leading professor of Health at the University of Boston has warned that a spike in alcohol use disorders is on its way owing to a shift in alcohol purchase and consumption habits during the crisis.

“We live in a society that loves drinks. Infused beverages are attractive to the consumer because the consumption process is so familiar. Now available in low-dose options, consumers can have a sessionable experience in a social setting much like alcohol, but without the hangover. Within the category, there are also many more options to choose from. Whether you’re looking for infused coffee, cannabis-infused wine, or a cannabis sparkling seltzer, there’s something for everyone,” said Jamie Evans, Founder of The Herb Somm and author of The Ultimate Guide to CBD: Explore the World of Cannabidiol.

The emerging cannabis drinks segment, however, could lessen that impact. Consumer research conducted by Prohibition Partners has found that four in 10 consumers who have or intend to purchase cannabinoid-infused beverages do so as a replacement for other intoxicating substances.

“The cannabis beverage category has developed rapidly over the past several years and is a real game-changer in the consumer packaged goods space,” says Ben Larson, CEO of infusion technology company, Vertosa. “In these extremely challenging times, infused beverages offer an appealing, approachable, and affordable alternative to alcoholic beverages. And thanks to cutting-edge technology, there are also more sophisticated and high-end varieties of cannabis beverages than ever before, from wine to beer to cold brew coffee to fresh juice to sparkling water.”

Larson predicts that “by the end of the year, you can expect to see notable consumer brands from beer, spirits, coffee, energy drinks and more bring exciting new products to market.” For example, Harmony Craft Beverages (a partnership between Sands Lane Ventures and BevZero), just launched their new brand, Malus, which is the industry’s first infused cider.

Room for improvement

Cannabis drinks are starting to get the needed boost, in part, because of the supply chain improving each month and the attention that COVID-19 has provided. “The light has shined on our little but growing space in the industry and I think it’s going to help cannabis beverages outpace any projections that are currently out there,” says Geoff Doran, Founder & CEO of Van Doran Brands. “There’s still a lot of room for improvement though. If you walk into 10 dispensaries in California, you will quickly realize that our space doesn’t have the proper shelf space we need such as sizeable refrigerators or retail real estate to help us find our way into the consumer’s hands. We are getting there with more brands coming on board though. We will see a massive growth event this summer. After all, it’s bound to happen, we have been imbibing/socializing with drinks for centuries, it’s just time to imbibe with a different vibe.”

2021 will certainly be a transitional year for cannabis as a whole, and with an increase in focus on direct to consumer channels and more brands entering the market, cannabis infused beverages will be getting into the hands of more consumers.


COVID led to a $2 Billion Projection for Cannabis Infused Beverages

March 9, 2021 |by Jim Baudino | Comments Off on COVID led to a $2 Billion Projection for Cannabis Infused Beverages | Blog | , , , , ,

More and more people want their drinks cannabis-infused. That’s one message entrepreneurs are finding easy to swallow in the pandemic.