The cannabis beverage industry is moving beyond the traditional ready-to-drink 12-pack to new formats such as shots, powdered drink sticks and sample packs.
The new offerings are a hit with buyers and sellers – but they also reflect a broader shift in the cannabis beverage space, operators in the rapidly expanding product category say.
When cannabis drinks are ready-to-drink (RTD) in cans it was the go-to format because it used to be marketed, said Diana Eberlein, founder of the Vertosa-based Intredition and partner of the Coalition for Alderege Alternatives (Caba).
“If it’s cold in the hand that’s when people see something,” he said.
The move away from cans is driven by consumer behavior, marketing constraints and the desire for product differentiation.
These are some of the topics that Eberlein and other leaders in the space will address at “Next-Gen Infusions: Discovery and the Future of Cannabis Beverages” scheduled for December at MJBIZS.
The rise of guns and stick packs and thc drink cans
As the $1 billion market for THC-infused beverages explodes, savvy brands are realizing that one size — or format — doesn’t fit all.
Retailers – especially convenience stores – have cheap shelf space and push fewer or more products.
Shots and adhesive packs take up less room and are easy to store. And shots, typically 2-ounce servings, have become a popular entry point for new consumers who want to try the product without committing to a full drink.
Liquor stores, on the other hand, are embracing larger formats such as 750-millilind bottles, catering to consumers looking for a premium, domestic experience.
“Once people try a product and see that they like it, they tend to move to larger formats at a better price point,” Eberlein said.
Stick packs, which contain warm emulsions of cannabis, are another emerging format. Single-serve packs can be mixed with water or other beverages, giving consumers the flexibility to customize their experience.
Adhesive packs are lightweight, easy to transport and have a longer shelf life than liquid products, making them an attractive option for consumers and retailers. And the sample packs follow the TROD Well model that has been successful in the brewing industry.
Cannabis drinks are a friendly alternative for new consumers
But as cannabis beverages gain mainstream acceptance and become available at many mass retailers such as stone, circle k and whole wine, consumer education also remains a priority.
Many people are still not familiar with thc dosing or how the products differ from traditional edibles.
“Take my mother,” said Matthew Shirah, CEO of Atlanta-based Scofflaw Beverage Co., which makes beverages for brands like Wana Brand and Uncle Arnie’s.
“He won’t smoke a joint, but he will try a drink,” she said. “It’s affordable and easy to use.”
Looking ahead, Eberlein predicts a shift towards more cannabinoids and adopOgens that promise specific effects such as concentration or relaxation.
“Unless it’s brunch on a Sunday, most people don’t drink alcohol at all times of the day, but they do,” she said.
“They may use drinks throughout the day for different reasons – you can have a drink in the afternoon to focus.”
How to ensure quality and consistency in cannabis beverages
The transition to New Beverage formats presents exciting challenges and opportunities.
Unlike stable alcohol, THC and other cannabinoids can quickly degrade if the environment is not controlled.
And to ensure that the THC is well distributed throughout the vessel it is important to ensure that if two people split the drink, one person does not end up with all the effects.
“Consistency is key,” Eberlien said. “Taste is king, but if you can’t deliver a consistent experience, the consumer won’t stick with your product.”
And shelf life can vary with different cannabinoids, terpenes and beverage types, said Harold Han, founder and chief scientific officer of Vertosa.
The recently launched VertoSa program is aimed at certifying drinks that meet the seven steps in the Supply Chain that ensure the consistency of Cannabis.
These are:
- A type of cannabinoid
- Emulsion type
- Construction
- To give them away
- Working together
- Testing
- Distribution and sales
“Cannabis drinks are already at a high level, but there will be a lot more deregulation, so we need to be prepared,” Han said.
Small and fast – a technological revolution in THC drinks
Production equipment that imports beverages has also improved, says Shirah of Scofflaw.
Another game changer for Scofflaw has been the adoption of High-Performer Chromatography (HPLC) equipment.
Popular during the Covid-19 pandemic, lab technology allows home testing of THC doses, enabling real-time adjustments.
“It allows us to deliver very quickly because we can test milligram doses and make changes in-house,” Shirah said. “Every batch is a little different.”
“If you have HPLC In-House, you can go faster.”
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Elevating cannabis beverages in taste and form
Evan Eneman, founder and CEO of Tonic Tonics, focuses on creating products that resonate with consumers on a cultural and lifestyle level.
“We don’t build the technology itself, like emulsation,” he said. “We focus on fluidity, structure and product format.”
This holistic approach has led to improvements in taste, packaging and ingredients, all aimed at delivering a better consumer experience.
While many cannabis drinks stick to standard profiles like blood orange or blue raspberry, Eneman also sees an opportunity to push the boundaries by offering flavors like Bosphorus.
Taking a Middle Eastern flavor profile, Tonic Tonic makes an apricot-forward flavor with rose and klaus product simple syrup.
Down the road, Eneman sees cannabis drinks being sold in the same type of bottles used by wine and spirits companies – and he sees thc drinks working alongside traditional offerings that work well.
“Beverages come alongside beer, wine and spirits, not instead of them,” he said. “We don’t have to take everything from their daily drinking habits. I see a great relationship.”
Margaret Jackson can be reached Margaret.Jackson@mjbizdaily.com.
