Drinks that are dope. The run-down on Cannabis-infused beverages

DRINKS THAT ARE DOPE

Will cannabis drinks cannibalise alcohol?

In the words of the great poet, Bob Dylan, everybody must get stoned. Or so that would seem in the United States and Canada since both have legalised cannabis for recreational and medicinal use. It begs the question, what do these new laws mean for the alcohol industry? Is it just a matter of time before Australia follows? Should we be prepared? In the United States and Canada, many feared this new wave of cannabis love would take consumer spend from the drinks cup, however, beverage companies have adopted the strategy of embracing the movement with cannabis-infused drinks developing a category that is unlike anything we have seen before.

There are two types of active ingredients in the production of cannabis drinks, Tetrahydrocannabinol (THC) the psychoactive ingredient producing the euphoria or high and cannabidiol (CBD) producing the relaxing effect. The drinks are made with varying strengths of both these ingredients so the consumer can tailor their experience. They can choose the kind and level of buzz, like a drinker would the proof.

While traditionally, when we think of marijuana, we think of getting high, or the THC effect, it is CBD that is getting a lot of press for its medicinal benefits. It can combat depression, chronic pain, anxiety, protects the brain, and is also antiinflammatory and anti-tumoral.

On the San Francisco Cannabis Drinks Expo website blog they report that ‘according to estimates by analysts at Canaccord Genuity, the marijuana-infused drinks sector is on track to become a US$600 million market in the US by 2022, estimating CBD beverages will become a $260 million and THC infused beverages a $340 million market – Source, Business Insider.

There are over 100 cannabis drink businesses in the US including Evergreen Herbal, founded by David Paleschuck, and selling drinks such as Blaze American Cola with 10 mg of THC and 10 mg of CBD, but also available in 100 mg of THC and 100 mg of CBD for a more pronounced buzz. Another producer is Mirth Provisions. This wave of producers

hopes for cannabis-infused drinks to be sitting alongside wine and beer in retail as an alternative to alcohol.

In the US the new category has spawned a new cannabis drink expert known as the ‘bud-tender’, the equivalent of a sommelier but instead of recommending a wine, they recommend a strain or flavour for the personalised high the consumer is seeking.

Indeed, there is such as interest with this new category that big players such as Constellation Brands have invested significantly in a business called Cannabis Canopy Growth, Canada’s largest marijuana growing company, buying a ten per cent stake allegedly worth a billion dollars. Speaking with the Communications Specialist, of CCG for Asia Pacific, Renee Shingles, she said they were launching a cannabis-infused beverage range in Canada later this year to meet the deadline for legalisation. The flagship brand is Tweed, already an established brand with other cannabis products in Canada but will now be manufactured as a drink brand. CEO of Canopy Growth, Bruce Linton said he is excited about Tweed & Tonic becoming a brand call of the future.

Canadian brewer, Molson Coor’s Brewing has also entered a joint venture making non-alcoholic cannabis-infused drinks with Gatineau, the Quebec-based Hexo Corp., called Truss. They too, have developed a range of products in time for the legalisation deadline to meet market demand and maximise the opportunity. Truss’s marketing blurb says, ‘Taking the cannabis beverages to brand new highs - we’re crafting beverages that’ll help you feel the wonders of cannabis faster, so you can be in control of the experience.’

It may just be a matter of time before we see legislations change in Australia.

Will cannabis cannibalise alcohol as the new social leveler? We can only see how high the stakes go.