beverages Archives - Green Market Report

Anne-Marie FischerAnne-Marie FischerAugust 27, 2019
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8min8030

What could have been a threat to alcohol and the beverage industry, has now turned into one of the beverage’s biggest opportunities since hops met barley.

Both the cannabis and beverage industries saw dollar signs when Constellation Brands added a $4 billion investment to its already ample investment into Canopy Growth. The beverage biggie, that owns Corona, certainly turned heads as cannabis brands, and leading beverage companies began inking deals to ensure their brands showed up in drink coolers across the country. 

Headset recently came out with an extensive report examining the rapidly developing cannabis-infused beverages industry, stating that although beverages don’t make up the majority of cannabis product sales, they are “a category within cannabis that’s worth watching.” 

The Growth of Infused Beverages

While market share has experienced an incremental increase, the overall market for infused beverages has doubled, moving from $1.5 million to $3 million in 2019. 

Infused beverages sales are concentrated in Washington, Colorado, and Nevada. California will be next to enter the beverages race when Lagunita’s HiFi Hops hits the shelves. Most recently, in Q2 2019, Washington led in beverage sales ($4.2 million), followed by Colorado’s $3.9 million. 

What Are People Drinking?

Infused sodas are reigning supreme in the beverages category, gaining 3.9% of the overall beverages market share. Surprisingly, warm drinks like teas, coffee, and hot cocoas lost market share, as did Iced Tea, Lemonade and Fruit Drinks. Infused sodas accounted for 70% of Washington’s beverage sales in 2019, while in Colorado and Nevada, 18% and 26% of respective sales were represented by soda. 

“Mocktails” also made gains over the last year, but the impact is not yet significant enough to believe that cannabis will become an alcohol replacement drink, although Nevada can attribute 12% of beverage sales to cannabis mocktails, which is aligned with Vegas’ reputation as a party town.

Headset even went as deep to look at the flavors that people were preferring. In Washington, lemon, lime, orange, and apple flavors make up 52% of the infused soda market, with the rest of the flavors being made up of distinct fruit flavors like huckleberry, hibiscus, and honeydew, just to name a few. In Colorado, the majority of the soda consumers prefer a flavorless beverage (this is also because drops, mixes, elixirs, and syrups sell the most in this state); in California, they love the taste of cold tea; and in Nevada, Fruit Punch tickles the most palates. 

Headset attempted to compare the prices people are willing to pay for beverages across states, but couldn’t find any correlation. For example, Tea, Coffee, and Hot Cocoa are amongst the highest priced items in Nevada, but of the lowest-priced items in Washington. Headset speculates that there is a different brand landscape in each state that attributes to these nuances in what people are willing to pay.

Getting “Buzzed Over Stoned”

In 2017, 100mg THC infused products made up most of the market share at 90.9%; in 2019, it’s dropped 67.1% and has been replaced by microdosed formats in the 0-5mg range. This leads Headset to conclude that “consumers are more interested in getting buzzed than stoned.” If people are indeed using cannabis-infused beverages for alcohol-replacement, they are likely consuming multiple beverages in one sitting, as they do beer or wine. Despite speculation, Headset projects that there is “a lot of room for low dose beverages”.

The Who and Why of Infused Beverages

Perhaps surprising, the Silent Generation is the largest consumer of infused beverages in Colorado, while in Nevada, enjoyment of these beverages is more evenly distributed across age groups. It makes more sense when you remember that in Colorado, drops, mixes, elixirs and syrups are of the leading product categories, which makes it easy for people of the Silent Generation to easily dose cannabis in a cup of tea.

POS data collected by Headset suggests that cannabis-infused beverages are an impulse buy or an add-on item. People buying beverages are usually purchasing pre-rolls or edibles and throw in beverages as a last thought. Beverages are most commonly bought alongside edibles, suggesting that beverages are more appealing to those who do not prefer to smoke or combust their cannabis.

CBD is Having Its Moment

CBD infused beverages are currently holding at 25% of the infused beverages market share, according to Headset. With the passage of the U.S. Farm Bill of 2018, hemp-derived CBD products could be a threat to THC-infused beverages that can now be sold in coffee shops and retail stores.

Crack Open a Cold One

The cannabis-infused beverages market isn’t yet massive but shows a great opportunity for cannabis and CBD companies to get in on the ground. Headset has concluded through their analysis of 4 states that tracking and predicting data trends across states is not linear, and that piecemeal, state-by-state legalization affects sales. This shows that brands in individual states are shaping the markets of those states. Had cannabis been federally legalized, it would be easier to notice more consistencies across consumer preferences. 

Headset predicts that sodas will continue to grow, as will mocktails. People are now getting into lower dose beverages, recognizing that it’s rare that people can consume a 100mg beverage in one sitting. 

While Headset was reluctant to name cannabis-infused beverages as an alcohol replacement, several data points such as lower doses and the rise in popularity of sodas show that cannabis-infused beverages are becoming part of social circles and scenes.

 


Video StaffVideo StaffJuly 22, 2019

9min15710

This interview was recorded on June 25, 2019, at the MJ Link Micro Investor conference in New York. 

Debra Borchardt, Editor-in-Chief, Green Market Report:

Dixie Brands Inc. (OTCPK:DXBRF) just got approved for Oklahoma, its sixth state. Joining me now is the CEO, Chuck Smith. So, very exciting, Oklahoma, your number six state and a pretty good patient population there, right?

Chuck Smith, CEO Dixie Brands:

It sure is, Debra. It’s about 130,000 patients, very broad qualifying conditions, so that makes it kind of perfect for a company like ours, has a very big product portfolio. We can really serve a lot of different patient needs with our existing product set.

Green Market Report

Your product, I have to say, it tastes good. That’s one of the issues that we have with beverages.

Chuck Smith

So, you could say it tastes great.

Green Market Report

Ok, it tastes great. So many of the cannabis beverages, they just make me cringe, and they taste awful, but your product doesn’t. It tastes good.

Chuck Smith

Well, thanks very much for that. I think all of our products taste really good, and that’s something we’re proud of, but that’s also why we’ve been around for nine years. Having nine years to actually perfect the formulations, understand how to work with the oil, understand how to bring the right kind of flavor profiles together in a great responsible way, but also attractive packaging, I think that’s a cornerstone of Dixie Brands. As we evolve, the consumer is demanding that too. We have to continue to evolve that technology to make sure that the products are consistent, reliable, and taste great in every single state that we market it to.

Green Market Report

You recently reported your earnings. Your revenue’s phenomenal. It was up 137%, so your sales are growing tremendously. I did want to ask you about your net losses, $6.6 million. Quite high. A lot of that was compensation, but to your point, you said the company’s been around for nine years. You just went public, so a lot of people put in a lot of hours to get this company to the point of going public, right?

Chuck Smith

Sure, but to be clear on the compensation, the number is a component of that, and this is the crazy thing, unfortunately, I guess, about being a public company. When we issue stock options to our employees, we actually have to capture the expense of those options. It doesn’t mean that the employees are out now driving Ferraris because they’re locked up for a three-year vesting schedule, but the company has to actually book that loss associated with those options that we gave. So, that’s really a non-cash expense, but it’s expense nonetheless that we’re going to do because we want to incent our employees through options to make them part of the company and owners and rowing the boat in the same direction that we all are towards success.

Green Market Report

I think that’s great that you’re able to explain that because for a lot of people, they see that, and they see that net loss number, and it’s frightening, but when you explain it like that, it’s like, “Oh, okay. All right,” so everybody’s getting like you said, an investment within the company, which creates a lot of stickiness with your employees.

Chuck Smith

We want the employees to share in the upside of the great growth this company is going to have and the great success. It’s been nine long years, and this hasn’t been an industry that’s easy for anyone. So, now that we’re in the public eye and have access to capital markets, I expect a great growth for the company and ultimately, a great success. Like any company that’s building, you’re going to have to make investments. Those investments sometimes drop to the bottom line as losses, but the reality is every investment we make now in infrastructure or people or our routes to market are all designed to generate revenue. We’re not spending a lot of time having to do things just to catch up to others in the market. I think our portfolio is broader and more established than anybody else in the industry.

Green Market Report

Beverages. It seems like everyone’s slapping CBD oil in their beverage, and that now, they’re a CBD drink. What are your thoughts on that?

Chuck Smith

We’ve been in the CBD business for three years ourselves. However, our focus has been on dietary supplement formatted products both for humans, Aceso Hemp, and in that case, we have a couple of different types of product formats including an effervescent powder, which is kind of like an Emergen-C if you’ve ever had one of those.

Green Market Report

Love Emergen-C.

Chuck Smith

It’s a great product, indication-specific, high efficacy. On the other side, we have a great company that we own called Therabis, which targets CBD wellness to pets, primarily dogs, and we just introduced our cat treat. We’re very comfortable with these products because we’ve built them, Debra, against FDA supplement standards. Even though the FDA, as of today, doesn’t allow CBD in food and hasn’t made a ruling on supplements, we’ve built them from day one against that stringent level of standards. Now, we don’t have a CBD water yet, and frankly, the FDA is not giving us much comfort that they’re going to allow mass-market distribution of CBD in water and food, and I think that’s yet to come. As we get more guidance and clarity on that, you could expect Dixie to be at the forefront of that.

Green Market Report

So you’ve gotten Oklahoma. Is your goal more state expansion?

Chuck Smith

Yes, so we had said at the beginning of the year that we were going to open up between four and six new states that would be adding to the four states that we already have. So, our goal is really in between eight and 10 new states. Oklahoma is our sixth. We expect to be releasing product there by September, so that’s a pretty fast turnaround. In Michigan, we announced that deal at the beginning of February and had the product on the shelf the end of March, so we know what we’re doing, we know how to get the product into the market. With Oklahoma as our sixth state, you could expect to see one or two more announcements here probably over the next 30 to 60 days. That’ll really bring us into that eighth state and growing territory.

Green Market Report

Fantastic. We will keep an eye on Dixie and Therabis for our good pets.


StaffStaffJanuary 15, 2019
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5min12731

Mainstream consumer goods companies continue to throw out their fears of the cannabis industry and instead are embracing all things CBD (cannabidiol.) Last week it was the shoe chain DSW (NYSE: DSW) that signed on with Green Growth Brands (CSE: GGB) to sell its CBD products in the shoe stores. Today Tilray announced it was going to work with Authentic Brands and provide the CBD for its over 50 brands of goods.

These companies are pursuing topicals for skin like foot creams, lip balms, and muscle rubs.  CBD beverages though also show great promise for big brand companies. Cannabis research company Brightfield Group said in 2019 to look to continued CBD growth in mainstream retailers and more CPG (consumer packaged goods) companies are entering the space.

The beverage company New Age’s announcement of plans for a new line of CBD-infused beverages – a reveal that caused stocks to surge 528% is a sign that CBD is banging down mainstream products doors said Brightfield.

The only problem is that CBD tastes, well, funky. It’s usually described as having a bitter, earthy taste that takes some getting used to. The key to getting CBD beverages accepted by mainstream consumers will is fixing for the taste problem.

Seattle-based Tarukino developed an emulsion technology called Sorse. that has solved for consistency and taste by encapsulating cannabinoids in a water-soluble form that is odorless, tasteless and dissolves in water.

“The cannabis beverage industry today consists of products that smell like cannabis, taste bad and have an effect onset that takes longer than 20minutes. Tarukino solves all these issues,” said CEO Howard Lee.

The company has teamed up with California-based Caliva to bring cannabis beverages to the market. Caliva already produces flower, pre-rolls, and vapes and is known for its wellness options. Its products focus on motivating the mind, steadying the body, and inspiring creativity. Now it’s tinctures and beverages will use Tarukino’s technology in an exclusive agreement.

“After extensive due diligence, we are confident that Tarukino is the right nano-emulsion technology company to partner with,” said Dennis O-Malley, Caliva’s CEO.

According to sales rankings this past summer from Headset, the Caliva ranked as a top brand across its three product categories: pre-roll, flower, and vaporizer. In the pre-rolled joint category, Caliva led the rankings in the top five slots with its House Doobies, Dogwalkers, Super Sessions, and Toasties. In the cannabis flower category, the top four spots belonged to Caliva as well, with the company’s breakout hit Reef Leaf taking the top slot.

“Our rankings have become a key indicator of quality and scale in California,” says Cy Scott, CEO of Headset. “The category, segment, brand, and product trends continue to tell the narrative of the growth in the California cannabis market, and looking at real-time sales data, Headset is identifying which companies are establishing themselves as the major brands as this market evolves into the world’s largest cannabis economy.”

The first beverages are expected to be available for purchase in the first quarter of 2019 in the San Jose store.

 


Anne-Marie FischerAnne-Marie FischerNovember 9, 2018
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7min25740

“Beverage companies are already placing bets on cannabis-infused beverages,” says Ryan Smith, CEO of LeafLink, and industry-leading B2B e-commerce platform, “They present an exciting new frontier.”

While places like Canada have started off slow in allowing regulated products into the market, places like California have an already thriving infused food and beverage market, with products like colas to infused drops to kombuchas to functional beverages flying off the shelves and into the hands of the health-conscious consumer.

A Notable Rise in Popularity

Infused-beverages sales in legal states are on the rise and are demonstrated by year over year results. Flowhub, a POS company, has indicated that beverage sales have increased 88% year over year from 2016 to 2017, with that trend seemingly continuing in 2018. When Flowhub compares data from the first half of 2018 against data from the second half of 2017, beverage sales have increased 18%.

According to LeafLink, these are the industry leading beverages:

  1. Pearl 20 Minis by Tarukino in California
  2. Sprig Lemon Tea 20mg CBD & Sprig Original 10mg THC by Sprig in California 
  3. Orange Kush Soda 10mg by Keef Cola by K.I.N.D. Concentrates in Arizona
  4. 100mg Passionfruit by HIGHDRATE by Evergreen Herbal in Washington
  5. “Yippee Ki-Yay” – High Energy Blend Drops by ZOOTS by Bronnor in Colorado
  6. “Waking Giant” – 10 mg (Sativa) by Mirth Provisions in Washington

“Purchasing trends on our platform have shown an accelerating shift toward branded, consistent products that resemble recognizable consumer packaged goods,” says Smith of the growth in popularity in cannabis-infused beverages. “They are incredibly discreet, hide the taste of cannabis well, and provide a fast-acting dosage without the guesswork of a typical edible,” adds Smith.

A Health-Conscious Driven Demand

Move over kombucha! As a representative for mood33, a cannabis-infused “functional beverage” herbal tonic company says, “We know that the modern consumer is actively searching for ways to reduce their alcohol consumption and the adverse effects that come with overconsumption, drunk driving, and hangovers.”

“Once consumers realize that cannabis can be consumed like an alcoholic beverage via products like mood33, we will see even more demand for cannabis beverages – as we expect the cannabis beverage category to consist of 20-25% of the overall market share within the next 5-7 years due to these developments and elements of market/category maturation,” mood33 adds.

The news has been rife with beverage companies eyeing the cannabis market, with the likes of Coca-Cola and now Pepsi moving in on the promises for infused beverages. Earlier this year, Constellation Brands (STZ) made a huge investment into Canopy Growth Corp (CGC) that Moody’s referred to as a speculative bet.

These investments and partnerships “have brought tremendous awareness to the nascent cannabis beverage category, and we predict every sophisticated cannabis company will have a cannabis beverage program in the coming years,” says mood33.

mood33 is hyper-focused on providing a cannabis beverage consumption experience for everyday people: the stressed-out soccer mom, the overworked professional, the sore runner, and the health & wellness/fitness maven.

The Global Future for Cannabis-Infused Beverages

The deals being made between cannabis and food and beverages industry big-wigs are something to pay attention to. While cannabis-infused beverages are not permitted in Canada’s legal market yet, these deals indicate that cannabis-infused beverages can have a global demand outside of established legal markets.

“There is great opportunity for the Canadian industry to offer a wider variety of products to serve patients and consumers with different preferences, while capitalizing financially,” says LeafLink’s Ryan Smith, “The demand for non-smokable product categories like beverages will only increase as long as people pursue the wellness benefits of cannabis.”

As for mood33’s plans, they want to see cannabis-infused beverages hit the mainstream: “we are eager to help develop a national framework where manufacturers and marketers can develop mainstream inspired, regulated cannabis food and beverage products that could one day sit on a Whole Foods shelf.”

 


Debra BorchardtDebra BorchardtSeptember 18, 2018
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11min10330

The news that soda giant Coca-Cola (KO) could be considering an investment or partnership with Aurora Cannabis (ACBFF) rocked the cannabis industry. First, because Coke is the king of beverages and secondly because cannabis is been so taboo in the consumer products industry.

“Consumer research shows Coca-Cola’s interest in marijuana is well-founded,” said Jeff Stein, Vice President at Consumer Research Around Cannabis (CRAC), a U.S. consumer company that specializes in researching the general consumer market and more recently, targeting cannabis consumers. “Soft drink users are more inclined to cannabis use than the general market according to our ongoing studies,” he said. The online study covered 36,199 adults of all age groups regarding purchasing behavior.

CRAC said that the more a person drinks soda, the more likely they are to purchase cannabis. Stein said that about 15% of the general market says they would buy adult use cannabis over the next year, but people who drink soda at least five times a week or more, that number pops to 18%. A whopping one out of five people who drink ten or more sodas a week plan on buying adult use cannabis in the next year.

 

% General % Of Adults Who Are Extremely
Consumer In Past 7 Days Market Adults /Very Likely To Buy Marijuana Index*
MONSTER 1.1% 2.1% 201
MOUNTAIN DEW 8.3% 13.0% 157
FANTA 1.8% 2.6% 142
SPRITE 8.5% 10.7% 126
DR PEPPER 9.3% 11.5% 124
PEPSI COLA 19.9% 23.7% 119
COCA COLA 27.7% 31.8% 114
CANADA DRY 1.6% 1.5% 97
DIET MOUNTAIN DEW 1.2% 1.1% 89
7-UP 2.2% 1.9% 88
A&W ROOTBEER 1.7% 1.3% 79
DIET DR PEPPER 1.5% 1.1% 72
DIET PEPSI 3.8% 2.5% 66
COKE ZERO 2.2% 1.5% 65
DIET COKE 6.6% 3.7% 56

Chart provided by Consumer Research Around Cannabis

* 2.1% of adults are extremely or very likely to buy marijuana this is 2 times the general market that drinks. Monster thus an index of 201. If it was the same as the general market the index would be 100.

31% of those surveyed that drank Coke in the past seven days were very likely to buy adult use cannabis, 23% of Pepsi (PEP) drinkers were extremely likely to make a purchase and Mountain Dew was in third place at 13%. Mountain Dew is owned by Pepsi and mostly associated with young, male consumers due to its sponsorship of many action sports. The caffeine in Mountain Dew is significantly higher than Coke.

The soda drinkers that are least likely to purchase adult use cannabis are diet soda drinkers. Only 1.1% of diet Mountain Dew drinkers and 1.1% of Diet Dr. Pepper drinkers plan on making a cannabis purchase. The only other soda drinkers that weren’t diet soda drinkers that had a low likelihood of buying adult use cannabis were people that drank A&W Root Beer, 7-Up and Canada Dry.

Soda’s Pharmaceutical History

The two products also have a somewhat shared history. Cannabis was originally a medicinal drug in the late 1800’s that was sold by pharmacists and carried by the major drug manufacturers of the time like Eli Lilly and Pfizer. Soda was initially sold as artificial mineral water and was also used for medicinal purposes.  This is why the soda fountains were first found in drug stores. Cocaine and caffeine were sometimes added to the drinks for medicinal purposes.

So, both of these products began life in the drug store and now both could find themselves on a shelf at a dispensary together. Coming full circle.

 

 

 


William SumnerWilliam SumnerJune 6, 2018
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3min12090

The Green Organic Dutchman Holdings Ltd. (TGOD) is getting into the beverage businesses. On June 6, 2018, the company announced the official launch of its global division focused solely on the beverage industry, appropriately named The Green Organic Dutchman Beverage Division. Recognizing the similarities between the beverage industry and the cannabis industry, TGOD’s new division will focus on the creation of branded products and supplying organic ingredients for global beverage brands.

As cannabis prices are expected to fall over the next several years, many companies are seeking to enhance their revenue through the creation of value-added cannabis products, such as infused beverages. In particular, the hemp and CBD market is poised for explosive growth, with some estimates predicting that the market will grow to over $2 billion by 2020.  With the significant potential for cannabinoid-infused beverages, several major players in both the alcohol and cannabis industry have already started making moves in that direction.

Late last year Constellation Brands (STZ), the company behind famous beer brands such as Corona and Modelo, announced that they would purchase a 9.9% stake in Canopy Growth Corp., which at the time was worth around $191 million.

After a strong Q4 report from Canopy, Constellation doubled down on their investment and announced that they would spend an additional $20 million on Canopy for investments in resources to build brands, personnel, opening new markets, as well as digital and e-commerce efforts. Not to be left out of what could be a booming market, TGOD is currently developing a 40,000 square foot research and development center, including space for product development and pilot manufacturing, to create novel and proprietary cannabinoid infused beverages.

“TGOD will utilize state-of-the-art R&D facilities, intellectual property and a leadership team with more than 125 years of CPG beverage experience. We will create unique, healthy and organic products for the recreational and medicinal markets,” said TGOD President, Csaba Reider in a statement. “We have the best access to capital, organic production capabilities and R&D resources in the world.”


William SumnerWilliam SumnerMarch 29, 2018
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3min14340

The creators of the craft beer Blue Moon are moving into the cannabis realm. On March 28, 2017, Keith and Jodi Villa announced the official launch of CERIA BEVERAGES.

“I’m ready to introduce another high-impact brand to the industry again, this time with a new line of custom cannabis-infused craft beers. Today, the opportunity and the demand are here, inviting Americans to enjoy a more social way of consuming cannabis – by drinking rather than by smoking it or through ingestion of edibles,” said Keith Villa in a statement.

Based in Denver, Colorado, CERIA hopes to be the first company to launch a line of non-alcoholic, cannabis-infused, craft beverages. With a similar body and flavor, the beverage will be similar to a craft beer but with fewer calories due to the elimination of alcohol.

Jodi Villa will serve as the CEO of CERIA, while her husband Keith will act brewmaster and co-founder of the company.

In an effort to deliver a consistent and trusted experience, CERIA will closely work with the cannabinoid research firm ebbu. ebbu has already developed a series of cannabis formulas that they claim can inspire specific emotions and feelings such as chill, bliss, and energy.

“We have always loved what Keith stands for – great-tasting mainstream beers that really kickstarted the entire craft beer movement,” commented ebbu CEO, Jon Cooper. “We are honored and thrilled to partner with Keith, Jodi, and CERIA to bring this groundbreaking new product to cannabis consumers in legalized states.”

The Villas know their way around a brewery. “When Keith created Blue Moon in 1995, the cloudy, unfiltered Belgian-style beer that would later be served with an orange slice, he in effect, introduced craft beer to the mainstream American beer drinker. It changed the beer industry and was even a question on the TV game show ‘Jeopardy,’” said Jodi Villa. “Since then it has grown to become the largest craft beer in the country.”

The company plans to first roll out its product line in the state of Colorado, followed by other recreational cannabis states. By the end of 2018, the company hopes to launch its craft cannabis beverage in at least three strength; light, regular, and full-bodied.

To help with the company’s initial rollout, CERIA has hired the advisement firm InterContinental Beverage Capital (IBC), which will assist with strategy, commercialization plans, and business operations.

The Villas, both University of Colorado graduates and native Coloradans, note that the new brand, whose name is currently being developed, will also be less caloric than traditional beer, due to the elimination of alcohol.


Debra BorchardtDebra BorchardtOctober 30, 2017
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3min15980

Constellation Brands (STZ) is the first major alcohol brands to make an investment in a cannabis company according to a company press release issued on Monday morning. Constellation Brands is best known as the distributor for Corona beer, but it is also home to numerous wine brands and hard liquor brands.

Constellation has apparently agreed to purchase a 9% stake in Canopy Growth Corporation (TWMJF)  in a plan to develop, market and sell cannabis-infused beverages.  “Canopy Growth has a seasoned leadership team that understands the legal, regulatory and economic landscape for an emerging market that is predicted to become a significant consumer category in the future,” said Constellation Brands President and Chief Executive Officer, Rob Sands. “Our company’s success is the result of our focus on identifying early-stage consumer trends, and this is another step in that direction.”

The investment, which is expected to close in the third quarter of the company’s fiscal 2018 year,  is expected to be roughly C$245 million or $190 million by today’s exchange rates and  represents an ownership interest of 9.9% of Canopy Growth Corporation, plus warrants which give Constellation Brands the option to purchase an additional ownership interest in the future.

That is a lot of money to spend on one of the lowest cannabis consumption categories. BDS Analytics found that in the large market of California, beverages only accounted for 5% of the edibles market. Most consumers prefer candy or chocolates when choosing an edible product, not drinks. Dispensaries also find it difficult to store the products as many of them require refrigeration that is usually stored behind the counter.

Alcohol companies have been circling the fringes of the cannabis industry as liquor consumption has been shown to drop in states where marijuana is legalized. Most have been reluctant to make investments since it is still federally illegal in the United States. It is also one of the lowest categories for cannabis consumption. Eaze cannabis delivery analytics found in a study “Over 82% of people surveyed said that using marijuana has caused them to reduce their alcohol intake. A whopping 11% of respondents said that they’ve quit drinking entirely because of marijuana.”

“We are thrilled to have the backing of such a well-established and respected organization such as Constellation Brands,” said Bruce Linton, Chairman, and Chief Executive Officer, Canopy Growth Corporation. “We look forward to working with the Constellation Brands team to access their deep knowledge and experience in growing brands as we continue to expand our business.”

 



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