Cannabis drinks have attracted a lot of hype based on their potential to bring new consumers into the industry, but early iterations of these drinks haven’t been runaway success stories.

There are a variety of factors at play, but according to the data available, one key issue may simply be a lack of interest from the existing consumer base.

In an interview with the Investing News Network (INN), Michelle Sundquist, director of innovation product design with SoRSE Technology, a Seattle-based CBD product developer, talked about the development of these drinks and their future.

Sundquist spent 20 years with Starbucks (NASDAQ:SBUX) in a variety of roles, but primarily focused on product development, alongside research on consumer interest trends for new beverages.

The beverage expert said the hesitation seen from consumers is to be expected as purchasing tendencies and understanding of these beverages settle in.

“They may not have trust in the ingredients, they might not have trust in the format,” Sundquist said.

“There’s a little confusion as to, ‘If it’s in my beverage, how much should I have? Is it real? How much CBD is really in it? And does it come from a reputable company?'”

In the end, attracting consumers will require proven marketing and beverage design tactics, she said.

“People might be a little bit hesitant to buy it because it’s not calling out to them as something that’s made for them,” Sundquist explained. “So a lot of it comes down to figuring out who your consumer is and figuring out how they are going to get your product.”

What about brand new consumers? Sundquist told INN if a consumer walks into a store not knowing about the products available, they will likely gravitate towards something that looks familiar to them.

“It’s not enough just to have a solid product if the flavors are not right, if the timing is not right, if the place isn’t right — then you’re going to have a really difficult time,” she said.

Canada poised to deliver modern drinks market

In Canada, Canopy Growth (NYSE:CGC,TSX:WEED) has relentlessly pursued consumers who may be open to making cannabis drinks their preferred delivery method.

“Based on our research, 17 percent of Canadian adults who currently don’t consume cannabis say they intend to use recreational cannabis … We see a significant opportunity to recruit these intended consumers through products like our drinks,” CEO David Klein said this summer, according to a report from Marijuana Business Daily.

In its most recent quarterly report, Canopy Growth, which has a partnership with Constellation Brands (NYSE:STZ), notes that it sold just over a million cans of its drinks during the period.

What’s more, Klein told Yahoo Finance the company’s drinks represented 74 percent of the total beverages sold in Canada over a year-to-date period as of mid-August.

However, the promise hasn’t reached its full potential, and currently vape pen products dominate the Cannabis 2.0 portion of products in Canada. Recreational products became legal in October 2018, but ingestible and vaporized products didn’t go up for sale until a year later.

Cannabis giant Canopy Growth will also soon be facing increasing competition as the love child corporation from cannabis producer HEXO (NYSE:HEXO,TSX:HEXO) and Molson Coors Beverage (NYSE:TAP,TSX:TAP) finally launches its drinks into the market.

The offerings from Canopy Growth and HEXO have attracted increased attention given the companies’ relationships with major beverage companies.

CBD plays a key role for wellness consumers

CBD is a strong mainstream element of the cannabis market, and when it comes to beverages Sundquist said CBD drinks tend to tap into the idea of wellness — an industry that reached US$4.5 trillion in 2018.

Consumers’ desire to know more about ingredients and the wellness aspect associated with a wide range of products are directly tied to the rise of CBD wellness products, Sundquist said.

An instant connection between CBD and the wellness segment, according to the beverage expert, is sparkling water products.

“People want to drink sparkling water because it hydrates, it has no calories, they don’t have to worry about clean ingredient statements because it’s just water,” Sundquist said. “Adding CBD sparkling water is an easy connection into something that people can easily incorporate into their lives.”

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Wall Street Reporter, the trusted name in financial news since 1843, has published reports on the latest comments and insights from leaders at: Tilray, Inc. (NASDAQ: TLRY), Icanic Brands (OTC: ICNAF) (CSE: ICAN), Aurora Cannabis (NYSE: ACB) (TSX: ACB), and HEXO Corp. (NYSE: HEXO)

Cannabis leaders are focusing on innovation in premium branding, global expansion, and tight operational execution in the drive towards profitability. Wall Street Reporter highlights the latest comments from industry thought leaders:

Keep reading... Show less

TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) (“TransCanna” or the “Company”) is pleased to announce that it has closed the 2nd and final tranche of its Unit financing. In connection with the closing, the Company issued 1,356,873 Units at a price of $0.55 per Unit, for gross proceeds of $746,280.15. Each Unit consists of one (1) common share and one (1) warrant. Each warrant entitles the holder to purchase one common share of the Company, at an exercise price of $0.75 per share, for a period of two years from the date of issuance. The warrants are subject to an acceleration right that allows the Company to give notice of an earlier expiry date if the Company’s share price on the CSE (or such other stock exchange the Company’s shares may be trading on) is equal to or greater than $1.25 for a period of 20 consecutive trading days. Finder’s fees of $42,542, 3,200 Finder’s shares and 80,550 Finder’s warrants were issued in connection with finder’s fees payable.

In total, the Company raised gross proceeds of $1,757,180 and issued 3,194,873 Units.

Keep reading... Show less

 Sweet Earth Holdings Corp. (CSE: SE) (FSE: 1KZ1) (OTCQB: SEHCF) (“Sweet Earth” the “Company”) is pleased to announce that it has received full Depository Trust Company (“DTC”) eligibility in the United States. On October 20, 2020, Sweet Earth announced that its shares had been listed on the United States’ Over-The-Counter Bulletin (“OTCQB”) under the ticker SEHCF.

DTC status means that Sweet Earth shares are now eligible to be transferred between brokerage accounts within the United States and significantly augments the ease in which American-based investors are able to trade Sweet Earth shares.

Keep reading... Show less

Hill Street Beverage Company Inc. (TSXV: BEER) (“Hill Street” or the “Company”), announces that further to its press releases dated July 21, 2020 and July 31, 2020, the Company proposes to amend the exercise price of 19,405,804 warrants of the Company that were originally issued on July 27, 2018, to $0.10. These warrants are set to expire on December 31, 2020.

The Company had initially proposed a lower amended price, but that proposal was not approved by the TSX Venture Exchange (“Exchange“), however, the Exchange indicated that a $0.10 exercise price, may be more acceptable. Accordingly, the proposed amendment remains subject to Exchange approval.

Keep reading... Show less

Issuance of U.S. Patent No. 10,851,077 covering methods for extracting and concentrating cannabinoids using ultrasound-enhanced solvent extraction bolsters World Class’ intellectual patent portfolio

World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”) is pleased to announced the United States Patent and Trademark Office (“USPTO”) has issued U.S. Patent No. 10,851,077 on December 1, 2020 in relation to the Company’s methods for extracting and concentrating cannabinoids and other target compounds from cannabis using ultrasound-enhanced solvent extraction

Keep reading... Show less