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A THC drinks producer wants to consign alcohol to history
Following our conversation with Cantrip’s Adam Terry, db speaks to Cann’s Jake Bullock about the future of THC drinks and if alcohol’s centuries-old monopoly on intoxicating beverages could be permanently disrupted. James Evison reports.
Sitting in an office in London, it can be extremely hard to see a future outside of alcohol. Surrounding the building are a number of pubs and restaurants, all of which sell a fine selection of beers, wines and spirits. In the UK, the alcohol industry is worth more than £45bn annually. In the US, it is worth US$204bn. Imagining its demise would appear unthinkable, and indeed that seems highly unlikely.
But the future is coming down the road, and young consumers have a bigger choice in drinks than ever before. Just as smoking was once a mainstream habit, some disruptors believe that alcohol could follow suit. At the beginning of the 1970s, almost half of all adults smoked. Now it is 12%, according to the Office for National Statistics.
It may seem odd for the drinks business to talk of such an event, but equally it is important to be aware of consumer changes. Indeed, going back to smoking, a lot of the shift has gone to vaping, which is now worth more than £1bn to the UK economy alone.
One big entrant to the THC beverage market is Cann, who alongside Cantrip features on Total Wine’s trial of THC drinks across Minnesota stores.
db caught up with its co-founder and CEO Jake Bullock to find out more.
Q: Could you tell me a bit about Cann’s growth, and your future plans in 2024?
A: Cann launched in Venice Beach, California after my friend and co-founder, Luke Anderson, and I were fed up with multiple day alcohol hangovers and next day regrets.
We have both made it through alcohol-fuelled corporate America and business school programs (Luke at Harvard and me Stanford), and were frustrated by alcohol’s hold over our social culture given it was one of the worst things we consistently did to our bodies.
We grew the brand from the West Side of LA, across the state of California and then across the United States to become (one of the top) THC-infused beverages in the country.
We expect to be profitable in 2024, and will bring Canns into the hands of more drinkers in liquor stores, bars, restaurants, and more.
Q: There are obviously various challenges across different areas/states of the US when it comes to selling THC-infused drinks. Could you briefly outline some of these challenges, and how you have been overcoming them as a producer?
A: Our number one challenge in selling is many states require us to sell into dispensaries, even though the folks that want our drinks are looking for them alongside alcohol.
This has improved over time as states like Minnesota and Connecticut allow our products to be sold in liquor stores and restaurants where consumers are deciding whether to drink booze or not.
The second challenge is educating consumers on how many they can have and what they should expect to feel. Folks are still nervous about THC and want to be in control. Microdosed products, like Cann, allow drinkers to feel mild effects.
Q: Do you think the criticism of THC-infused drinks is fair and proportionate, especially compared to alcohol, and do you see a shift in consumer perception to such beverages in recent years?
A: Over 80% of adults are looking to drink less booze, and as a result people are consuming THC in order to take the edge off without taking them over the edge.
Young people, especially, are drinking alcohol at significantly lower rates than previous generations. We expect that in 25 years people will likely view drinking alcohol the way we view smoking cigarettes today.
THC is not a health supplement and we do not make any health claims on our products. That said, we can sleep well at night knowing that no one will die of an overdose of THC, while folks very sadly die every day from alcohol overdoses.
Q: Are there any studies/reports that you can cite around safety and use which contradict those who may push a more negative narrative around the health aspects of THC drinks? More broadly, do you think consumers are concerned about the safety or health of THC drinks, or is this not a concern for US consumers?
A: Yes, there is a growing body of research demonstrating how THC is less impairing than alcohol, especially in microdoses of under 5mg THC.
Historically, the federal government only funded science research on the harms of THC and would forbid any studies on the benefits of THC, so we do not have a robust research base to demonstrate the positive wellness effects that millions experience anecdotally in their lives.
Additionally, many studies on the harms of THC are deeply flawed. They often rely on unreliable self-reported survey information and focus on smoking cannabis, which raises its own health and potency concerns. Further, cannabis is often mistaken for the cause of psychological disorders that were present prior to cannabis use where cannabis was used as a first line of defense against symptoms of mental illness.
THC is still an intoxicant – albeit a very mild one – that your body needs to process, so the best approach is to consume it in moderation.
Q: I have noted a lot of commentary on the mg level of THC drinks and you describe your product as microdosing. What is your interpretation of this, and do you think there will be some form of agreement around levels (i.e. like beer at 3.5% ABV to 6 or 7 and wine at 12-15`5 etc)? Also, would it be possible to make an equivalence between, say, 5mg and ‘one unit’ of alcohol, etc? Is a ‘unit’ type approach the best way to cut through to consumers, or do you foresee a different pathway?
A: Yes, the way to think about this is how long it takes the body to metabolize the intoxicant. For example, one standard drink may take an average person about an hour and 15 minutes to metabolize, similarly, it would take about the same time to metabolize 2mg of THC.
We typically equate the feeling or buzz that comes from one of our 2mg THC, 4mg CBD servings to a glass of wine or a beer. This comparison creates an easy and digestible shortcut for consumers who might be novices to cannabis, but interested in trying Cann.
Q: How would you like legislation to progress in the US (and possibly elsewhere)? Do you think THC-infused drinks will follow a similar pathway to alcohol and become a mainstream, legal form of intoxication in the US?
A: I do! And I’m a big advocate for this. Minnesota is the blueprint for how a state should roll out and succeed in safe access to cannabis. Their THC-infused food and drinks are able to be sold in restaurants and liquor stores which has supported normalizing our product category and expanding our reach.
It’s been a pleasure to interact with both vendors and consumers in the state and hear feedback about the product and how it’s impacting the industry for the greater good. I believe other states will follow Minnesota’s lead and THC-infused drinks will not only grow in popularity, but begin to take over its share in many bars and liquor stores.
Q: On that note, do you see a future where THC-infused drinks could start to compete on a direct level with alcohol, perhaps in the same way as vaping and combustible cigarettes?
A: In 2024, I believe beer will complete its journey from the largest alcohol category to the smallest, as canned alternatives like THC-infused drinks and RTD cocktails steal its share.
With the next wave of drinkers coming of age in 2024, Gen-Z will pass up on alcoholic beverages with an enlightened POV on its toxic effects. In fact, Gen-Z will begin to view alcohol the way millennials view smoking tobacco – fewer and fewer do it with a larger number quitting or trying to quit.
Q: Could you offer some insight into the different levels of uptake of THC drinks among different age groups?
A: Frustration with alcohol is universal. Whether you are a Gen Zers, who has decided booze is not a part of your night out on a Friday or a Boomer whose doctor is telling you that drinking less alcohol will help you live longer, folks are uniting behind better social beverage options.
Q: How do you think the drinks giants who have dipped their feet in the water will respond to the rapid growth of products such as Cann? On your various retail deals, are there any other deals that you can tell our readers about or allude to?
A: We are all looking at the same data: the younger you are the less booze you are drinking; everyone is drinking less beer.
The alcohol companies that engage with the THC industry first will be most likely to succeed, and you are seeing this already with Total Wine & More’s entry into the category in Minnesota.
Q: Do you think other retailers – and big multiples/wholesalers – will follow suit and we will see THC-infused drinks across the US in multiple stores?
A: Of course. As public opinion around THC shifts and legislation opens up new markets, large retailers will begin to welcome THC-infused drinks alongside alcohol in liquor stores.
We’ve already seen this happen in Minnesota, one of the more progressive markets, where Cann is now sold in Total Wine stores within the state.
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