Back in 2014, Luke Anderson and Jake Bullock worked at Bain & Co. together as consultants and discussed the prospects of cannabis. While none of them smoked weed, both men were thinking about the growing potential of the cannabis industry, which was empowered by the legalization in various States. Growing up in Colorado with its loyal attitude to medical marijuana, Bullock was sure that a new form of cannabis release will change the market forever. He shared his thoughts with Anderson that one day, beverages with a tiny dose of cannabis would take market share for wine, beer, and other alcoholic drinks. 
The idea of cannabis beverages
In the spring of 2018, Bullock’s Beverage Lab was a controversial workshop with a blender, multiple kegs, and an amateur canning process using artificial carbonation. By the fall of 2018, Bullock and Anderson raised $1.5 million in seed funding and launched Cann – their ingeniously named product. The attention of entrepreneurs was turned to beverages because drinks are the simplest social lubricant.
They decided to focus on a small dose of 355 ml and add to the drink 2 mg of tetrahydrocannabinol (THC), which causes the famous cannabis effect because they agreed that alternative adult drinks like the beer had about the same effect as this dose. To compare with, the Delta 8 tincture has 20-40 mg of THC per ml.
Nowadays, Cann is among the most well-known hemp drinks in the US, sold in packs of six for about $20. That’s a big price to pay considering the pack only contains 12 mg of THC and 24 mg of CBD. Compared to other canna beverages, the cost is rather high – Uncle Arnieʼs, iced tea with lemonade made from 100 mg of CBD per 230 ml bottle, costs $10.
Market share
Since 2018, the startup has raised $12 million from Navy Capital, Imaginary Ventures, and Green Thumb Industries. During its first year in the market, Cann earned over $3 million, and today it can be found in dispensaries in Illinois, California, Nevada, Massachusetts, and Rhode Island. The startup expects to triple its income by the end of 2021.
In California, the company has already grabbed 25% of sales of all THC beverages, according to Headset. With $175 million in annual sales of THC beverages nationwide, Forbes expects Cann to have approximately 5% of the U.S. market by the end of the year. In addition, the company has attracted stellar investors, including Rebel Wilson, Gwyneth Paltrow, Ruby Rose, Baron Davis, and Kate Hudson.
In Conclusion
Bullock is convinced that in a decade, most cannabis will be consumed in beverage form. Selling beverages is an excellent way to involve non-smokers and bring back canna lovers who last used hemp in homemade cookies back in college. Cann customers say they are taking 20-50% less alcohol than before. “We’re not chasing an increase in cannabis consumption,” says Anderson. “We are interested in a consumer who has never bought cannabis at a dispensary before.”
