Hemp-infused beverages are still a new thing, but Troy Brosnan is already relishing his second chance.
As we previously reported, Brosnan – an early success story in THC drinks as co-founder of Massachusetts-based seltzer maker Levia – is formally returning to the category by leading a new beverage-focused division for vertically integrated supplier Monarch Emulsions.
It’s an opportunity to guide an ambitious portfolio of new national brands, but also a chance to heal some old wounds. As Brosnan told us in April: “To have the opportunity to go out and do it right and really fulfill the dream that we had with Levia with a different brand is really what’s my driving factor.”
Here are three takeaways from our conversation:
Unfinished Business: Brosnan stayed on at Levia for almost a year after the seltzer maker was snapped up by multi-state operator (MSO) Ayr Wellness for $20 million in 2022, but the experience was far from happy. Reflecting now, he admits selling the company, and “trusting an MSO to follow through on their word” to take Levia into multiple new states, was his biggest mistake.
- That experience – plus some independent beverage consulting work – is part of Brosnan’s motivation to help incubate young cannabis-infused brands in his new role at Monarch, offering opportunities to reduce COGS through breaks on co-packing and emulsion.
Ready to Run: Under Brosnan’s guidance, Monarch has teed up four new independent brands (spinning from 5mg to 25mg THC) for release this summer: a new zero-calorie seltzer aimed for wide appeal, plus a soda (primed for Southern states), a high-sugar infused mocktail, and a mushroom and adaptogen-infused functional drink.
- Brosnan said Monarch is “pretty close” to closing an agreement with a liquor distributor that will grant 24-month exclusivity for any brand in Monarch’s portfolio.
- The distributor will also handle all sales and field marketing. Direct-to-consumer is coming, but the goal is to prioritize brick-and-mortar.
Big Picture: After two years of prep work, Monarch has assembled a nationwide network of nine co-packers (in states like Nevada, Michigan and Rhode Island) to produce products for a “15 to 20 brand” portfolio, said Brosnan. There’s an imperative to scale Monarch quickly, and despite the Levia experience, an eventual exit is still on the cards.
“We’re trying to build the most well-rounded portfolio with great branding, great marketing and kind of become a bespoke brand in the space. And hopefully somebody sees us and says, ‘we want what you have.’”
This story first appeared in the April 28 edition of BevNET’s Daily Briefing.