As the Big Players jockey for position in the Cannabis Industry, THC infused beverages presents the largest area for growth. “The Verge” (a cannabis blog) is basically negative on cannabis beverages, but it does present some talking points and provides a few takeaways. From the “The VERGE”, August 4, 2019, with HighBridge comments and observations:
“No one really wants or likes cannabis beverages. In legal adult use marijuana markets, infused beverages make up a mere 2%-3% of total sales.”
HBH research shows that, yes, THC infused beverages occupy a relatively small portion of shelf space in retail dispensaries. We disagree that this is because “no one really wants” them, but strongly agree that the reason is “no one really…..likes cannabis beverages”. The reasons: They taste terrible and there is a shelf life issue. The HBH beer products actually taste like beer! A standard HBH will maintain as it rolls out its Energy Drink line. And, the HBH emulsification process remedies the “separation” problem.
HighBridge believes our colleagues at Molson have more accurately predicted the growth of the THC beverage sector. Again, from The Verge: “Molson Coors CEO Mark Hunter has said drinks could soon make up 20 to 30 percent of cannabis sales“!
A prediction further bolstered by the investment sector: “Beverages should have a meaningful opportunity, if you can fix the product,” says Vivien Azer, the lead cannabis analyst at the investment bank Cowen.
Easy to see why HighBridge is focused on its line of THC infused Beers and Energy drinks. In what is predicted to be a multi BILLION dollar recreational cannabis industry, beverages look to be the one of the highest growth sectors with relatively few participants.
“If you’re a beverage company and you know how to make liquid and put it in cans and make it taste good, whether it’s an electrolyte beer or a THC beer, it’s a natural extension of your expertise,” says Brandy Rand, chief operating officer for the Americas at IWSR Drinks Market Analytics, an alcohol industry market research firm. Rand told me she thinks the expansion into marijuana-infused beverages makes perfect sense for alcohol companies. “This is a natural progression into looking at people who are concerned about wellness, who maybe want the occasion and experience of something that looks, tastes, and feels like a beverage alcohol product but has no calories, no hangover.” HighBridge couldn’t agree more! Our Faux Beers are not made from an alcohol based or alcohol extracted recipe, but rather from a non- alcohol related formula. Not only has HighBridge “nailed” the taste, but it has also solved the emulsification issue, with its products having an approximate 9 month shelf life. (Traditional beer based products are typically 6 months.). And, we are working on “Gluten Free”, non-GMO, low/no cal and other “healthy” options!
HighBridge strives to provide as much information to our shareholders and potential investors as possible. We know there are many questions, and want to be an active part of the discussion. HighBridge wants you to know where we stand on the issues and help answer the questions!