Page 55 - Beverage Master December January 2020

International News

$529 million per year in Canada, most of which will be ing to inexperienced cannabis users looking for an
on top of existing cannabis spending. Deloitte predicts alternative to alcohol.
sales of these beverages will come at the expense of
beer, wine and other alcohol as “cannabis-curious” Truss Beverage Company has also announced it will
customers experiment with marijuana instead of be ready to release cannabis-infused beverages in
booze. December, including CBD-infused spring water and
THC-infused drinks. Compet-itor Fluent Beverage
The Deloitte report notes that alcohol and tobacco Company said it would be prepared to release CBD-
companies are looking for opportunities to enter the infused beverages but is still working on formulations
legal cannabis industry to avoid losing market share. with THC.
Pharmaceutical companies are also entering the mar-
ket, as consumers turn to CBD oil and cannabis to Beer Brands Push Into Cannabis Beverages
self-medicate.
Ever since Canada legalized the sale and consump-
Mild High Aimed at tion of cannabis, big beer companies have been team-
New Cannabis Consumers ing up with cannabis companies to develop canna-
bis-infused beverages.
Deloitte predicts cannabis-infused beverages will
appeal to older, often female, Canadians who are con- Canopy Growth, for example, has benefited from
cerned about the adverse effects of alcohol and are billions of dollars of investment from U.S.-based
interested in trying cannabis yet are turned off by the Constellation Brands, maker of Corona. Truss
idea of smoking it. Beverage is the product of a joint venture between
Molson Coors and cannabis producer Hexo, and
Most producers of THC-infused drinks are aiming for Fluent Beverage is backed by An-heuser-Busch, who
a formulation that triggers a high within about 15-20 has partnered with British Columbia-based pot pro-
minutes and lasts no more than a few hours. This ducer Tilray.
effect is in contrast to most cannabis edibles and oils,
which are slower to take effect and produce a high In June, Bloomberg reported that Molson estimates
that can last as long as six hours. cannabis beverages will make up 20-30% of Canada’s
legal cannabis market. However, a report by Deloitte
Unlike beer or wine, there’s little risk of a hangover estimated drinks make up just 1% of sales by value
from cannabis beverages. Some varieties can also and volume in U.S. states where pot is legal.
boast they are low-calorie drinks, which could appeal
to more diet-conscious con-sumers. Prices are expect- Marketing, Labeling Restrictions on
ed to be similar to that of craft beer; however, the Cannabis Beverages
beverages can on-ly be sold at legal cannabis outlets,
not grocery stores or alcohol retailers. If cannabis beverage producers want to steal market
share from beer and wine, they need to overcome the
In October, Ontario-based Canopy Growth Corp strict limitations on marketing, packaging, labeling and
announced the launch of 13 cannabis-infused drinks, distribution imposed by Health Canada.
some boasting as few as five calories per serving. The
drinks range from pure distilled cannabis, intended to Producers are not allowed to compare their bever-
be mixed with sodas or other beverages, to pre-mixed ages to beer or wine, nor indulge in lifestyle market-
blends of canna-bis with tonic, ginger ale, cola, soda ing in the way that alcohol producers can. Colorful,
and fruit-infused sparkling water. vibrant packaging is another no-no—drinks must be in
opaque, childproof packaging with plain labels.
Unlike some legal producers in the U.S., Canopy
Growth’s lineup focuses on low-dosage bev-erages Cannabis products can also only be sold by licensed
with an effect similar to that of a single beer or mixed cannabis retailers, of which there are very few com-
drink. According to the Ottawa Citizen, while Health pared to the number of alcohol retail outlets—and
Canada allows a THC concentration of 10 mg per this also means you won’t find the-se drinks in bars or
package, 10 of Canopy Growth’s 13 products will have restaurants for now.
2.5 mg or less, producing a mild high aimed at appeal-

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