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Alternative Beverage Opportunities

June 8, 2021 |by Jim Baudino | 0 Comments | Blog | , , ,

June 8, 2021 by House of Saka

More Americans are turning away from alcohol in favor of healthier alternatives. Though COVID-related lockdown restrictions led to brief a surge in sales, alcohol use in the United State is on the decline. 

Alcohol sales fizzle out

In the first quarter of 2020, as lockdown restrictions were first put into place, alcohol sales increased by 54%. Yet one year later sales have fallen flat, declining by 1.9%. One report found that alcohol manufacturers were “disproportionately affected by the coronavirus,” and estimates that global alcohol sales won’t rebound until 2024, and that “recovery” in the U.S. might take even longer. 

During the same time, the non-alcoholic beverage market grew by leaps and bounds. According to a report by IWSR, a London-based data and intelligence company which tracks worldwide alcohol trends, the no/low alcohol market in the US grew by more than 30% in 2020.  By 2025, Global Market Insights projects the global non-alcoholic wine and beer market alone will account for $30 billion in annual sales, growing at a CAGR of seven percent. 

No such thing as moderation

While it is generally accepted that alcohol is generally unhealthy, particularly when used heavily, we are just coming to understand how bad for the human body alcohol actually is. An observational conducted by the University of Oxford found a relationship between alcohol use and shrinking brain mass. 

Speaking with CNN, the study’s lead author Anya Topiwala, a senior clinical researcher at Oxford, noted that brain volume “reduces with age and more severely with dementia. Smaller brain volume also predicts worse performance on memory testing.”

As the true health effects of alcohol become known, more Americans are seeking out healthier options; but non-alcoholic beverages are not the only alternative. Cannabis has increasingly become a popular alternative to alcohol. 

Market Opportunities: cannabis beverages as a healthier alternative

While alcohol sales have floundered during the pandemic, the cannabis industry has flourished. In 2020, global cannabis sales rose 48% to $21.3 billion. Over the five years, the market will swell to more than $90 billion in annual sales. Unlike alcohol, cannabis is far less toxic and carries far fewer health effects.

Also, unlike alcohol, cannabis can be enjoyed in a variety of forms to avoid the negative effects of smoking. With declining alcohol sales, a rise in non-alcoholic beverages and the desire for a healthier alternative, cannabis beverages represent one of the most viable alcohol alternatives. There are far fewer health effects, it is impossible to overdose on, and it closely recreates the “drinking experience.”

Cannabis brands have become increasingly savvy as to how they market their products, aiming their efforts towards alcohol users looking for a healthier alternative. Thanks to advances in emulsion technology, cannabis brands can now create alcohol-free cannabis beverages that taste just like their original alcoholic counterpart. 

For example, the luxury-infused cannabis brand House of Saka has redefined the drinking with their award-winning Saka Pink and White alcohol-removed cannabis wines. Their latest foray into beverages aims at redefining the classic cocktail with Saka Spark “Mimosa,” a sparkling cannabis wine boasting Mimosa-strain-specific live resin.

Brands like House of Saka are why cannabis beverages make up one of the fastest segments in the industry. According to MJBizDaily, cannabis beverage sales grew by 40% in 2020. By 2025, sales are expected to reach $2.8 billion. Between the cannabis market, and the dwindling alcohol market, there is a significant opportunity for enterprising brands savvy enough to close the gap. 

 

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More Parents Are Using Cannabis Than Ever Before

May 4, 2021 |by Jim Baudino | 0 Comments | Blog | , , , , , , , ,

K-Zen’s Mad Lilly created the Moms For Mary Community Blog to help destigmatize parents’ cannabis use

May 4, 2021 by Judy Yee

Being a parent without the stress of the pandemic is challenging, and the pandemic has created a significant amount of other challenges that parents and caregivers have needed to work through over the past year. To help cope with some of the stress and anxiety of getting through the day, many parents have either increased their cannabis use, or found a new love of the plant. 

There has been an increase in cannabis retailers catering to this audience and many companies  focusing on discreet products such as edibles and cannabis-infused drinks that are more easily, and safely, enjoyed at home.

Results from a recent Harris Poll Survey, show that since the start of the pandemic, 52% of parents who had previously used cannabis started or increased their cannabis use. 

Almost overnight, moms like me found ourselves juggling crazy, virtual school schedules, working from home, taking on the role of caregiver, teacher and earner all at the same time. This experience allowed me to see why parents are turning to cannabis in the pandemic.

The pursuit of being a “good mom” during the pandemic seemed laughable and completely unrealistic. For me, being a parent in the pandemic has been about survival. 

If I can end the day getting my daughter through distance learning, cooking something for the family, attending my Zoom meetings and squeezing in some time for myself – like going on a run or even 10 minutes of meditation – I consider the day a huge success.

I try to carve out time in the evenings to enjoy a cannabis beverage as I prepare dinner, which helped me compartmentalize my day – it was like a marker that the work day was winding down and my personal time was ramping up. That structure not only gave me something to look forward to, but also helped me unwind and de-stress while staying alert and functional.

As the CEO of a cannabis beverage company, and someone who started incorporating cannabis into my daily routine before the pandemic, I’m not surprised that parents are turning to it during these tough times. It’s a great way to de-stress, relax, connect with my spouse, get some sleep, feel lighter… the list goes on.

Moms For Mary

This is the reason why we / Mad Lilly launched Moms for Mary to help destigmatize parents’ responsible cannabis use. It was important for me and my team to support and celebrate fellow moms and dads who are using cannabis, which is why we launched Moms for Mary, a community of moms for moms who are sharing their stories and positive experiences with cannabis.

In the same way that airlines tell you to secure your oxygen mask before helping children and those around you, I believe that responsible cannabis use is a form of self-care which leads to being a better partner and parent. It’s our aim to inspire those who are curious to discover how the plant can improve their overall well-being and contribute to ending the unfair stigma surrounding parents and responsible cannabis usage.

It’s our aim to inspire those who are curious to discover how the plant can improve their overall well-being and contribute to ending the unfair stigma surrounding parents’ and responsible cannabis usage. We invite every mom and dad to share their story!

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4/20 Holiday Beverage Buyers’ Guide

April 20, 2021 |by Jim Baudino | 0 Comments | Blog | , , , ,

As millions of cannabis consumers prepare to kick back and enjoy 4/20, many are turning to infused beverages to ring in the holiday. As one of the fastest-growing markets in the cannabis industry, infused beverages represent a holy grail for manufacturers: a cannabis product that is both easy to dose and produce consistently. Primed for the national stage, the cannabis beverage market has generated millions of dollars in sales, and billions more in investment

 We wanted to provide you with an overview of the beverage market and examples of the hottest brands in the industry.

2020: The Year of Cannabis Beverages

2020 in particular was a banner year for the cannabis beverage industry. Over the last year, cannabis beverage sales jumped by 40%, from $67.8 million in 2019 to $95.2 million in 2020. Boosting the sales of cannabis beverages is the decline of alcohol sales. 

Despite increased sales during the pandemic, alcohol use is declining. Even as bars and restaurants have begun to open back up, alcohol sales continue to dip. As fewer Americans are drinking, cannabis is rapidly becoming America’s new recreational substance. Almost half of all cannabis users have reduced or replaced their alcohol consumption with cannabis. In 2020, cannabis sales increased by 71% and overall purchase sizes increased by 33%.  

This consumer adoption has only been accelerated by the COVID-19 pandemic. 

According to Marijuana Business Daily, although cannabis beverage sales generally are trending upward, sales only started to spike as soon as COVID-19 lockdown restrictions were put into place. Prior to March 2020, infused beverages sales generated less than $6 million a month. In December, monthly sales started to close in on $10 million.

The Future of Cannabis Beverages is Female

Women are the biggest consumers of cannabis beverages. According to a report by Headset, women outspent men on cannabis beverages in every age category. The vast majority of cannabis beverage purchases (80%) included other cannabis products, compared to around 66% of edibles sales. Preference in dosage to vary state by state. For example, in Washington, consumers prefer 100mg bevers, while California consumers prefer products with less than 12mg.  Market-wide, consumers prefer beverages with over 100mg of THC (59.8%), followed by 10mg beverages (18%) and 5mg (19.5%).

Cannabis Beverages: A Market Poised for Growth

The infused cannabis beverage market is expected to continue to grow over the next four years. In addition to the gains made throughout the pandemic, increased legality should help propel growth in the market. According to Grandview Research, the infused cannabis beverage market is projected to grow at a CAGR of 17.8% and reach $2.8 billion by 2025. That’s enough to make anyone pop open a bottle in celebration.

Variety of Products Types

The following is a small fraction of the cannabis infused beverages available in the market today. From high dose shots to low dose cider, there is a beverage for any occasion.

Cann is the world’s first Low-Dose cannabis beverage in a Can(n). Made with 5 all-natural ingredients (Carbonated water, Agave, 100% Fresh Juice, 100% Natural Essential Oils, California Cannabis Extract), Cann provides a lighter, less impactful and more controlled approach to cannabis consumption .(2mg THC & 4mg CBD.) 200+ California Dispensaries (including Eaze.com / MedMen / Apothecarium / Sweet Flower…)

Product Description: Cann is the #1 selling THC-infused beverage in California according to BDS Analytics. Founded by Stanford and Harvard graduates, Cann is reshaping social drinking with their microdosed, non-alcoholic beverages that deliver a perfect, uplifting feeling every time. Vegan, gluten-free, and with only 30-35 calories, each Cann has five all-natural ingredients with a strength that is similar to a beer or glass of wine. There are no artificial sweeteners or flavors, sugar substitutes, or cannabis taste.

Retail Price:

  • $18 per 6 pack of Cann social tonics (core flavors)
  • $12 per 4 pack of Cann social tonics (seasonal flavors)
  • $20 per 4 pack of Cann Hi Boy social tonics 
  • $18 per 10 pack of Cann Roadies

Website: shop.drinkcann.com, Instagram: @drinkcann

4/20 Deal: Use code FOURTWENTY on shop.drinkcann.com – get 20% off 4 or more 6pks of Cann.

 

Nectr is a zero calorie, zero sugar, vegan, uber-refreshing sparkling water that’s perfect for any time of day or night. At 10mg of THC per bottle, it’s a perfect introduction for the canna-curious or regular cannabis user. It can be found in over a hundred dispensaries across California and at tastethehigh.com/find-us.

 

Matt’s High Soda created the hottest drink of the year with Cannabis-infused Uncle Arnies Iced Tea Lemonade. According to Headset’s sales data, Uncle Arnies is the fastest selling beverage in California. This cannabis version of an Arnold Palmer is every stoner and bud-tenders favorite. Packing a whopping 100mg of THC, it’s enough to make you take a whole afternoon away from reality. So sip back and relax, it sells out fast but you can check mattshighsoda.com/get-some for the list of available dispensaries.

 

Malus Hard Cider, from Harmony Craft Beverages, is California’s first cannabis-infused cider that uses live resin to maintain the aromatic profile of terpenes. Brewed from nature, Malus is a deliciously drinkable blend of apple and cannabis flavors. With dry cider and floral notes, Malus Granny Smith OG is fast-acting and sessionable with 3mg of THC and <2mg of CBD per can to make your best high better. Founded by a team of beverage and cannabis experience enthusiasts, Harmony Craft Beverages is inspired by a quintessentially Californian heritage and a new generation of social drinkers. For more information on Harmony Craft Beverages and Malus Hard Cider, including retail locations, visit: HarmonyCraftBeverages.com | Instagram: @harmonycraftbeverages, @drinkmalus.

 

House of Saka was established with a mission to bring the Saka’s cannabis infused wine tradition into the modern age. Saka WHITE is the color of muted sunlight with mouth-watering aromas of ripe peach, apricot and toasty oak Saka WHTE offers authentic flavors of rich, buttery vanilla and lush tropical fruit balanced with mild acidity and a long, pleasing finish. With 30mg of TCH and 6mg of CBD per bottle (6 mg of THC, and 1mg of CBD per 5oz serving), Saka WHITE delivers a sensual, relaxing high with rapid onset and offset effects for a truly safe, predictable and social cannabis experience. Five servings per bottle. Nonalcoholic. Fewer than 16 calories per glass. You can purchase Saka WHITE and PINK at houseofsaka.com to have it delivered to your front door in the state of California.

 

Tomato Jane™ by Van Doran Brands is Southern California’s newest way to enjoy brunch. It is a 10 mg ready to drink product.  We use the best combination of spices and flavoring to give you a tasty tangy drink. Enjoy the new way to imbibe with a new vibe™ for your next brunch! You can find these cannabis infused beverages in Southern California dispensaries. 

 

S*SHOTS is infused with 100MG of glorious THC and expertly blended with sweet ‘n tangy fruit juices. It builds the vibe with each tasty 10mg THC shot (10 servings per bottle) for a flavor-explosive, full-body-high. Explore both flavors –Watermelon Punch and Lemon Crush– as a shot on their own, or mix it as a delicious mocktail. Order on eaze.com and in select stores listed at s-shots.com/find-us.

 

Mad Lilly’s Spritzers Mango Passion won 2nd place for infused beverages at the 2021 Emerald Cup. Let your taste buds bloom with the bright and delicious flavors of Mad Lilly Spritzers: Ginger Pear, Passion Fruit Mango, and Raspberry Hibiscus. Each beautiful (and recyclable) bottle is filled with clean ingredients (all-natural fruit juices and sparkling water – no added sugars or preservatives) and infused with a 1:1 ratio of 5mg THC and 5mg CBD for a perfectly balanced, relaxing experience. Order on Eaze.com now and find us in California dispensaries soon.

 

Viv & Oak is an innovative wine alternative for women and men that love wine but wants to avoid alcohol. We extract the alcohol, and infuse the wine with premium cannabis. Our Shimmering Scarlett (grapes from Zinfandel) with dosing styles of THC 50mg, THC 30mg, THCv 25mg, CBD 25mg (2:1:1) & CBD 100mg THC 4mg per bottle and our Shimmering Blush (grapes from Rose) with dosing styles of THC 50mg& THC 25mg CBD 25mg (1:1) per bottle. With only 3 grams of sugar and 19 calories per glass.

Giving you an elevated social experience, without the hangovers. 

You can thank us in the morning!™ 

Visit us at www.vivandoak.com for retailers near you!

 

Pabst Labs: The same Blue Ribbon you know and love now comes with a different kind of buzz. This light and refreshing seltzer is made with California grown cannabis, has only 25 calories, 4 grams of sugar and zero ingredients that are hard to pronounce. Each 12oz can has 5mg of THC, or as we call it, the right amount to start having a good time. Thanks to our advanced emulsion technology, powered by Vertosa, our cannabis infused seltzer works quicker than an average edible, and allows for the most efficient absorption into your system, so you won’t be left waiting for hours to feel a buzz. Order now through our Pabst Labs Shop page or visit our Find It page for retailers near you!

 

Artet is a modern beverage, inspired by tradition. Unlike traditional aperitifs, Artet is non-alcoholic and cannabis infused. Each batch is a blend of cannabis and eight botanicals that work in harmony to make Artet delicious on the rocks, intriguing when mixed, and always enjoyed in good company. Born out of a backyard BBQ in Los Angeles, Rosemary Jane quickly became a favorite among Artet drinks. The warming notes of Artet working in harmony alongside a blend of italian grapefruit juice, young rosemary simple syrup, and sparkling water. Each can has 5 mg of THC and 5mg of CBD. You can find stores near you to purchase Artet at iheartjane.com.

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

March 30, 2021 |by Sergio | 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.

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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.

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