Cannabis-infused beverages are the fastest-growing segment of the cannabis industry. Expectations are that the cannabis-infused beverage sector could grow to over $1 BILLION by 2025.

Where's the Money?

According to Headset which is a Seattle-based cannabis analytics firm, cannabis-infused drink sales expanded by 40.3% in 2020 over 2019 (across all US states where cannabis is recreationally legal), outperforming the cannabis market overall, which increased 39.4% for the same timeframe.

Cannabis-infused beverages and CBD (hemp-derived) drinks tend to be more socially acceptable. Most people don't want to be in a social setting with the smell from a joint or even puffing openly on a vape pen. Cannabis beverages are discreet and you can take them with you easily. 

Research is showing the health benefits that are being derived from cannabis, cannabinoids, and terpenes. The US government is even allowing analysis to be conducted with viable samples, by independent nongovernmental labs, ahead of legalization. 

Consumers are looking to benefit from a healthy lifestyle. The stress from the pandemic has increased the search for healthy products, especially in drink form. Your distribution business can help provide the solution. 

What About Partnerships?

The biggest wine and spirit distribution company in the United States, Southern Glazers recently signed a contract with Canadian cannabis company Canopy Growth. Southern Glazers will help distribute Canopy's product line of CBD-infused sparkling water brand called Quatreau (4 flavors) throughout the US.

Quatreau was introduced in Canada. It has since become the top-selling infused beverage in that country. Canopy has also partnered with Acreage Holdings (a US-based hemp company)  for the online distribution of its infused products.

Early partnerships afford Canopy Growth the option to buy Acreage Holdings when the United States passes legalization. This places Canopy in an opportune position once this occurs. 

How About California Distribution Partnerships?

Partnerships are expanding rapidly within California. For example in October of 2020 Nabis (a large technical cannabis distribution company) announced an agreement with Pabst Blue Ribbon. Nabis will be the exclusive distributor for Pabst Labs THC cannabis-infused seltzer water. Nabis will help distribute PBR-infused drinks throughout the state.

Investing in distribution infrastructure and upgraded software platforms may be what's necessary to navigate this new fascinating realm of cannabis. Networking at the Cannabis Drinks Expo 2021 should be educating, enlightening, and could very well be profitable.

What Are the Legalities?

In California, cannabis-infused beverages didn't exist when regulatory rules were enacted. The result is that drinks that are cannabis-infused fall under cannabis edibles guidelines. This means that each distribution company must have a license or partner with a producer, grower, and extraction facility within CA that does have one. Partnerships will be key.

Packaging must meet precise standards involving containers that can't be seen through. Branding and copy must be strictly adhered to on labels. All cannabis-infused products must be sold by a legal cannabis dispensary.

These statutes are very specific however not necessarily what the regulations for cannabis-infused drinks may realistically need as this sector advances. While these rules may be challenging currently, advocates are working to amend statutes so that beverages have their own category under cannabis law. 

How About CBD Infused Drinks?

Beverages that are infused with CBD without any THC, extracted from the hemp plant, can be sold across state lines into places that are approved. The Hemp Bill of 2018 officially knocked CBD from hemp plants, off the controlled substance act. Some states have opted out of allowing CBD products in their area. 

What About Federal Legalization?

Looking out on the horizon, when national legalization occurs, the plan for interstate commerce is expected. This will untie the hands of the whole cannabis supply chain. The trajectory of cannabis businesses, that have been deemed essential during the pandemic, will skyrocket.

Now is the time to learn how to enter this exploding market. Get ready for the future. Plan for successful cannabis-infused drink partnerships and growth.

Come see what the excitement is all about. Meet other distributors already in the market, software & logistics developers, brewers, distillers, infusion technicians, dispensary owners, cultivars, and research labs. Learn how YOU can be part of this massively exploding cannabis market.

In Frame: Happy Faces at 2019 Cannabis Drinks Expo

WHEN AND WHERE

November 11, 2021 - South San Francisco Conference Center (11 am to 5 pm) - San Francisco

PRICING

$99 - Expo Floor Only Pass

$299 - Conference (All Sessions) + Expo Floor Pass

Written by Teresa Martin - Freelance Copywriter: Cannabis