Bevscape: The Latest Beverage Brand News

Cann Partners with Tove Lo to Launch First Caffeinated Flavor

Cannabis-infused “social tonic” maker Cann has partnered with Swedish pop star Tove Lo for its latest product launch: Peach Passionfruit Maté, a limited edition caffeinated beverage infused with THC.

The new product represents a step into a new functional space for Cann, which has mainly developed innovations for its low-dose THC and CBD-infused beverages around pack size and format. The drinks are available in 12 oz. tall cans (in line with its Hi Boy line) and contains 65 mg of caffeine sourced from maté and 5 mg of THC. The retail price for a 4-pack is $20.

Cann co-founder Luke Anderson said Peach Passionfruit Maté was developed in partnership with singer Tove Lo, who is an investor in the company and was Cann’s first celebrity ambassador. Lo, who is known for her albums Blue Lips and Sunshine Kitty (as well as co-writing the Grammy nominated Ellie Goulding song “Love Me Like You Do”), selected the flavor combination. As Anderson noted, peach and passionfruit are “delightfully playful sexual innuendos, which is her brand.”

The line also marks Cann’s first retailer-exclusive product via a partnership with California cannabis dispensaries Sweet Flower (Los Angeles) and Airfield Supply Co. (San Jose). Peach Passionfruit Maté will be available for at least a year, Anderson said, but the company may look to expand the product into a full caffeinated line in the future.

Modeled after maté vodka cocktails, popular in the German club scene, Anderson said he had long wanted to produce a beverage using maté. While Cann’s product is not the first THC-infused drink on the market to feature caffeine (several infused cold brew coffee brands exist, including Somatik), there have been few THC-centric energy drink plays. For Peach Passionfruit Maté, Anderson said the company wanted to keep the caffeine content relatively low so that consumers can have multiple drinks in a night.

“All social drinks have caffeinated options — espresso martinis, Red Bull vodkas, and I mean, Four Loko obviously,” Anderson said. “But by putting caffeine and alcohol together it can create a whole wave of issues. But we’re going ahead and making the statement that mixing THC with caffeine is not actually dangerous, and it can enhance the experience and make it more social than if it were just THC on its own.”

Lo will also play a significant role in marketing the new product both as a social media ambassador and as the face of the product on in-store displays, which through the Sweet Flower and Airfield Supply Co. partnerships will mark a major step up in in-store marketing efforts for Cann. Anderson said Lo will be featured in cardboard cutouts, as well as stickers and on shipping boxes, which will receive prominent displays in retail. The dispensary channel has long posed logistical challenges for beverage brands’ ability to merchandise — with no-to-limited cooler space among the biggest hurdles — but this rollout will look much more like a traditional CPG launch.

Anderson highlighted Canadian dispensary LCBO, which recently revised its beverage strategy by putting beverages into a “star” position via prominent merchandising and saw sales skyrocket. For Cann, the experiment has already been successful, with the soft launch resulting in “hundreds of units” being sold.

“It’s a huge change,” Anderson said. “About 90% of the dispensaries in California don’t even have refrigeration that is visible to the consumer, and that is just not how we buy drinks…. So I think it’s not a demand failure, it’s a retail readiness failure. But if we can put good creative behind things we get prioritized, so this is how we’re trying to prove that it can work on a micro level.”

As the cannabis beverage space fights to gain traction in the U.S. (drinks are still just 1% of the legal marijuana market), activity in the category is picking up. Earlier this year, Keef Brands announced expansion into several new states and debuted new beverages infused with less well-known cannabinoids such as CBG and THCv. Also in August, Ayr Wellness entered a binding agreement to acquire Massachusetts-based infused seltzer maker Levia, with $20 million paid in upfront consideration and up to $40 million more to be paid on earn-out.

However, even as Cann faces more competition, Anderson said the company aims to stay ahead by continuing to target young, socially active consumers. The company recently launched a keto-friendly Lite version of its products, made without agave syrup, which he noted has had a strong repeat purchase rate.

Last year, Cann took in about $3 million in revenue, Anderson said, with projections on track to triple sales this year. The products are now available in five states, including California, Nevada, Illinois, Massachusetts and Rhode Island, with Canada, the Pacific Northwest, Arizona and the Tri-State area expected to come online in the next 12 months. Other product launches, such as the on-the-go squeeze pack Roadies line, have performed well, Anderson added. Roadies, in particular, could grow to make up about 15% of total sales, he said, while the Hi Boy line has seen strong sales in California.

Next, Cann is preparing to launch a premium “Cann Reserve” line, made with high-end ingredients and flavors to provide consumers with a more upscale experience.

“When we think about some of our most exciting things in the cooker, we haven’t been able to greenlight them only because it’s too expensive,” he said. “Now we have enough brand equity that people who are really, really interested in Cann might be okay paying 20% more for something that has a really editorial flavor profile and ingredients with really good stories.”

Though federal legalization continues to be the biggest hurdle between cannabis-infused beverage brands and mainstream breakout success, Anderson said Cann is not actively involved in any lobbying or regulatory efforts, citing high financial costs that would be better invested into growing the company. However, Cann remains an active voice for legalization and has in particular called for equitable regulations that benefit BIPOC entrepreneurs whose communities have been more heavily harmed by prohibition and the War on Drugs.

“We believe that microdose THC products should be available in grocery stores,” he said. “It will probably take us a decade to get there, but there’s really no reason they shouldn’t be given how much less dangerous they are than alcoholic beverages or over-the-counter drugs. There’s no reason for them not to be at Whole Foods. So one day, when we have the right people at the table and the access to capital, we will make a push for it. But for now, we’re just gonna keep making good tasting drinks and put ‘em places.”

First Bev Takes Controlling Stake in Health-Ade, Belsito Named CEO

Private equity investment fund First Bev has acquired a controlling stake in Health-Ade Kombucha, the company announced in August. The move comes alongside an executive shakeup for the California-based brand, as co-founder and CEO Daina Trout moves into the new role of Chief Mission Officer while First Bev managing partner and beverage industry veteran Jack Belsito is moving from investor to CEO.

As part of the transaction, First Bev (formerly known as First Beverage Group) is acquiring the stakes of two other Health-Ade investors, The Coca-Cola Company and CAVU Venture Partners. Meanwhile, investment group Manna Tree Partners has joined in the deal, adding Health-Ade to a portfolio that includes Vital Farms, Urban Remedy and The New Primal. Exact financial terms of the transaction were not disclosed.

According to Trout, bringing on Belsito — a 35-year industry veteran whose history of scaling international brands includes turns as the CEO of both VOSS Water and Snapple — is intended to help take Health-Ade to the next level. The kombucha brand, founded in 2012, is currently available in over 45,000 doors nationwide and is now reporting over $200 million in retail sales annually, according to the company. Belsito’s skill set will lead a new chapter of growth, Trout said, including international expansion, scaling operations and transitioning to a platform brand by exploring possible M&A opportunities to add new brands under the Health-Ade banner. Belsito has also joined Health-Ade’s board of directors.

In the newly created role of Chief Mission Officer, Trout said her responsibilities will be to continue to drive the brand positioning with a focus on innovation and creative elements. She will work alongside Belsito, with an aim to develop and maintain Health-Ade’s corporate identity as it scales.

“Jack and I are completely lockstep with our vision and I think that’s what really triggered this whole deal — because we were both on the same page of where we wanted to take this thing,” Trout told BevNET. “If you really want to change how consumers see you or really want to be a meaningful, inspirational brand to consumers, that takes a lot of effort and work and that’s what I plan on doing. At the same time, to continue to grow double digits, we need to be in channels that kombucha has never been [in] before and countries that kombucha has never been [in] before, and that’s where Jack will put his effort.”

Health-Ade was among the first significant investments made by First Bev after the fund formed in 2013. According to Trout, the firm’s decision to acquire a controlling stake came earlier this year following a series of sit-down discussions about Health-Ade’s long term business plans. She noted that, in response to the pandemic, many beverage strategics have retracted from M&A to focus on their core portfolios and in-house innovation, making now “the perfect time to buckle down and focus” on scaling and defining the company as “a true champion for gut health.”

CAVU, a firm run by Rohan Oza and Brett Thomas, invested $7 million in Health-Ade in 2016. Trout praised the firm as a “great partner” but noted that First Bev’s plan to grow the brand over the next five to 10 years was not in line with CAVU’s vision for the company, prompting the sale of its shares.

“CAVU has made a really good business out of supporting brands just like ours in their beginning,” Trout said. “They’ve been involved for five years and I think it made sense from a timing standpoint and from a return on investment standpoint for them to move on and continue to do this with other companies. I think when First Bev shared their excitement and desire to ante up for the next three, four, five or 10 years — whatever it’s going to take to really bring this brand to the Nike level for beverage — that wasn’t [CAVU’s] mission and so it was a handshake where they said this is a natural, organic time for us to make this change.”

First Bev will also acquire the stake owned by The Coca-Cola Company, which reportedly invested $20 million into Health-Ade in 2019. Amid the pandemic, Coke has wound down its Venturing & Emerging Brands unit (VEB) to focus on refining its current portfolio. Though Coke itself is still invested in First Bev, therefore retaining an indirect stake in Health-Ade, Trout said it was another example of a mutual parting that made sense for both companies.

Ultimately, Trout said the decision to move ahead with First Bev and Manna Tree as its key investment partners allows Health-Ade to simplify its cap table and craft strategy with a focused group of investors who are all in agreement about the future of the brand.

Over the past year, Health-Ade has aimed to expand its consumer base beyond the core kombucha drinker with a number of new innovations, including prebiotic soda Health-Ade Pop, functional line Health-Ade Plus and a line of kombucha-based cocktail mixers. As well, the company this year rebranded its core line with new packaging intended to build around the broader message of happiness and gut health. As the company moves ahead into this next stage, Trout said that owning “gut health” will be key to expanding Health-Ade into the platform brand it aims to be.

The transition also comes as the entire kombucha category has reached something of a crossroads; although kombucha has breached mainstream retail channels, its previously rapid growth has broadly plateaued, even as household penetration remains low. Health-Ade is also not the only company drafting experienced operators to seed the next stage of growth; in July, Brew Dr founder Matt Thomas stepped aside as CEO, with the company bringing in General Mills vet Dan Stangler to act as chief executive.

Health-Ade is profitable and continues to grow double-digits year-over-year, Trout said. But while it has remained among the best performing brands in kombucha regardless of category challenges, Trout said she is now thinking beyond this limited category definition.

“How the category performs is almost not in my vision, because it’s about health and wellness, it’s about gut health, and kombucha obviously is going to play a very important role in that,” she said. “The health and wellness set has expanded a lot, so I think we’re kind of making a mistake by looking at kombucha as its own category. To me it’s part of health and wellness food and beverages, this functional set which is on fire.”

While Health-Ade currently has over 150 full time employees and is likely to expand its team in the near future to support this level of scale, Trout, who started the brand with husband Justin Trout and friend Vanessa Dew, said that for now no other executive shake-ups are planned.

“I think the only shift is going to be me and Jack,” Trout said. “And mine, I really see it as a promotion. So I’m pretty excited to elevate to the Chief Mission Officer role. Honestly, it feels so exciting and I can’t wait to start Monday morning.”

Sensing “Right Time,” Vertical Wellness Debuts CBD Beverage Portfolio

After waiting years to enter the CBD beverage market, Vertical Wellness isn’t wasting any time now that it’s in the door. The California-based company is preparing for a wide rollout of a suite of new cannabinoid-infused drinks spanning multiple categories and formats, as it aims to be one of the early national players in the burgeoning CBD market.

For beverage industry veteran J. Smoke Wallin, the president of cannabis brand Vertical who was named as head of its cannabinoid-based health division Vertical Wellness in 2019, drinks represent a particularly timely opportunity. Following the mantra of “wellness and branding delivered with science at scale,” he’s been active in building out the company’s infused product portfolio, which ranges from skin care and topicals (via a licensing partnership with model Kathy Ireland) to CBD strips to pet food. But plans to launch drinks had up until this point been stifled, as lack of federal regulation has left many retailers and distributors waiting for revised guidance before proceeding.

Things began to change in March, however, when Southern Glazer’s, the nation’s biggest wine and spirits distributor, changed its long-held position and announced a partnership with Constellation Brands-backed cannabis manufacturer Canopy Growth to carry its first CBD-infused drink in the U.S., Quatreau. The distributor has picked up several more brands in the months since — including Kill Cliff, MAD TASTY and CENTR — while other liquor houses like Republic National and Breakthru Beverage Group have also entered the arena with the likes of Daytrip and Recess, respectively.

The long wait for a definitive ruling by federal regulators on the status of CBD in food and beverages hasn’t ended, but conditions on the ground are such that brands now have an unofficial green light to operate, according to Wallin.

“We’ve been waiting for the right time,” he said. “The bigger companies have done their risk assessments and have clearly come down on the side of ‘the market is there and the risks are diminishing.’ They’ve decided there will be a ruling in favor of these products that will be forthcoming, or that the FDA is just simply not going to enforce [federal restrictions] and they are comfortable enough with the state regulations that have permitted ingestible in a number of states.”

Vertical’s own response has been definitive: the brand has announced plans in the coming months to release three new beverages in select markets. Those include products under existing brands Taos, which will premiere a line of flavored CBD-infused iced teas in glass bottles, and Hemp Moji, which is positioned as a more playful brand offering a shot line featuring 50mg CBD per TK oz serving, with each tailored to a different functional use: Immunity, Energy, Workout and Sleep.

Meanwhile, the latest release — a six-SKU CBD-infused flavored sparkling water line featuring 25mg of CBD per serving comes under Vertical’s Just Live brand, which produces infused topical products aimed at helping athletic performance and recovery.

In terms of distribution, Wallin declined to offer further details on retailers or partnerships, citing a forthcoming announcement. However, the products will initially launch in Arizona, Nevada, Oregon, Texas, Florida and Indiana, all states where Vertical’s strong relationships with chain retailers can be leveraged for maximum effect, he noted. At the outset, adding points of distribution will be prioritized over any volume metrics.

As distributors begin opening their doors, Vertical Wellness’ recent merger with Canadian hemp processor CannaFarma, set to close on September 20, is helping provide the company with the resources it needs to meet its growth ambitions. Wallin described the deal as the “catalyst” for Vertical’s entrance into beverages, one that has helped get products on the manufacturing line and enhance its infusion technology but will also put the company in a position to attract more capital as it scales.

“They were looking for a company with our kind of philosophy and our kind of brand portfolio, and also for someone to run the business,” Wallin said. “The fact that I could step in, take over the public company with our brands, and now have access to the kind of capital we need to support them was very exciting for me and for all of our investors.”

That portfolio of brands — each of which is tied to a specific consumer, use case and marketing identity, per company strategy — is seen as the key to unlocking the full potential of Vertical Wellness, Wallin said.

“It’s kind of a natural progression from the early brands in the CBD world, which weren’t really brands in the way that are typically defined. They were just products that had ‘CBD’ slapped on,” he said, comparing the approach to generic private labels. “Now we’ve got brands that maybe cover more categories than I would necessarily want to, but part of that is about experimentation. At the end of the day, having a focus on who you are trying to serve and what you mean to that consumer base is a winning strategy, and that’s how we’ve approached all our brands.”

Super Coffee Closes $106M Series C Round

Super Coffee closed a $106 million Series C fundraising round in August. The round was led by Maryland-based venture group Durable Capital Partners and included participation by beverage industry veteran Clayton Christopher and former Peet’s Coffee CEO Dave Burwick, as well as another tranche from existing investor and distribution partner Anheuser-Busch InBev (AB InBev).

After pitching “close to 50” investors since starting the process in March, CEO Jim DeCicco said the company connected with Durable Capital Partners’ founder and managing partner Henry Ellenbogen through a member of its board. Though most of its portfolio is outside of CPG, Durable has recently made significant investments in food and beverage, including salad chain Sweetgreen ($156 million) and Boston Beer Company. Through the group’s connection with the latter brand, Ellenbourg helped connect DeCicco with its CEO, Dave Burwick, the former head at Peet’s Coffee.

Texas-based Super Coffee, which recently relocated from New York City to Austin, also has a pair of new locally based investors in Clayton Christopher and Doss Cunningham, chairman and CEO of supplement brand and C4 Energy parent company Nutrabolt, who invested through family fund LivWell Ventures.

After initially seeking $70 million on a $430 million pre-money valuation, the round closed at $106 million. Around $30 million will go towards cashing out the company’s first 20 investors, composed of friends and family, DeCicco said.

Since launching in 2015, Super Coffee has emerged as a fast-rising challenger to established RTD coffee giants in Starbucks and Dunkin’, while also picking up consumers seeking alternative energy and protein drink options. The brand signed a master distribution pact with AB InBev last June as part of a $25 million funding round led by Skyview Capital. Currently marketing formats ranging from cans to multiserve bottles to K-Cups and packaged coffee (plus a line of creamers), the company is on pace for $100 million in sales for the full calendar year, DeCicco said.

The new financing will help fuel Super Coffee’s ambitions to push beyond grocery retail, which accounts for around 60% of the business. That segment helped insulate the brand from slowdowns in c-stores, but with that channel representing nearly half of all RTD coffee sales, DeCicco noted that convenience is its next target. Backing those efforts is 7-Eleven, which invested $2 million through its 7-11 Ventures division and is rolling out four SKUs in cans and bottles to stores nationwide.

Behind the scenes, DeCicco said Super Coffee will continue to support its partnership with AB. The brand’s ACV on its highest-selling SKUs is only around 40%, less than half of what high-sugar rivals Starbucks and Dunkin’ can claim, so “we have a lot to build out” in terms of distribution and incentivizing wholesales, he added. But with no new innovation outside of seasonal LTOs until 2023, Super Coffee will seek to pump up brand awareness, hovering around 2% nationally. Bringing on Chad Portas, former chief creative officer at Bai, is part of that effort, with the bigger target being this year’s Super Bowl LVI at SoFi Stadium in Los Angeles. De Cicco said Super Coffee will have a large on-the-ground presence at the event — the idea is to “own” the post-game morning occasion of 6 a.m. to noon, he noted — in support of AB, which is planning to blow out its previous record-high advertising budget for the big game by more than double.

The new funding solidifies Super Coffee’s position as a direct challenger to Starbucks and Dunkin’, said James Watson, Executive Director of Beverage Research at Rabobank. The brand’s low calorie, protein-added formula gives it a unique better-for-you positioning within traditional RTD coffees, but its cross-over into the broader energy space has the most potential to open up the c-store channel, where hybrid products from Monster and Forto have carved out a foothold, he noted.

Yet while Coca-Cola and Pepsi maintain their legacy brands, most of the category innovation has been fueled by beer companies like AB and Molson Coors, the latter of which is a distribution partner for La Colombe’s RTD lattes. The fact that AB reinvested in this most recent round underlines their ambitions in the coffee space, Watson said.

“For beer companies looking outside of beer, they want the c-store,” he said. “You want a brand that travels well in all the same places that beer does, and that’s what this drink does. Distributors are going to love having it.”

With Assist From New Investor Chris Paul, Koia Set to Enter HBCUs

Beverage maker Koia has landed a major new partner in its mission to popularize and proselytize for plant-based diets: the company announced in August that NBA All-Star point guard and plant-based advocate Chris Paul has joined the brand as an investor.

Paul, most recently seen leading the Phoenix Suns to the NBA Western Conference title, has been a vocal ambassador for the health benefits of plant-based diets, specifically for athletic recovery and performance. But he’s also aligned that thinking into his off-the-court business interests as an investor in Beyond Meat and in GoPuff, which announced in February that it would be working with Paul to bring more plant-based brands on to the platform and introduce those products to students at Historically Black Colleges and Universities (HBCU).

The pact with Koia includes its own HBCU component: starting with a pilot launch this year, Koia will introduce branded vending machines to select HBCU campuses with which Paul has relationships, to be followed by a broader rollout in 2022. In addition, Paul has made a commitment to purchase 50,000 bottles of Koia Straw-nana Dream Smoothie for GoPuff customers nationally, aiming to showcase the brand as an affordable and nutritious plant-based option that can quickly reach underserved communities through the platform.

“My hope for investing in Koia and other change-makers in the industry is that we work together toward a bigger systemic culture shift where underserved communities have access and opportunity to live better, healthier lives,” said Paul in a press release.

Speaking to BevNET, Koia CEO Chris Hunter said the collaboration came together shortly after Paul helped lead the Phoenix Suns to victory over the Los Angeles Lakers in this year’s NBA Playoffs and shared an image on social media of Koia as his “postgame recovery meal.” After getting connected and having a conversation, Hunter said he and Paul developed an “authentic and organic” relationship that facilitated opening the door for a strategic partnership at a point when it wasn’t actively fundraising.

“We really felt like Chris has a presence in different communities than we do,” he said. “We are not traditionally athlete focused. Through Chris and his support of the brand, we believe that other people are already taking notice.”

On the shelf, Hunter said a recent culling of its portfolio — both Coffee and Thrive lines have been nixed after debuting in 2020 — has helped Koia sharpen its focus around the core Protein, Keto and Smoothie offerings. The brand recently had its best off-promo sales week ever at longtime partner Whole Foods, he noted. Meanwhile, at Kroger, Koia has surpassed “benchmark” brand rivals Bolthouse and Naked (along with Suja, REBBL and others) in sales velocity over the last 12 weeks, according to data shared by the company. And in the club channel, Hunter said the brand has been working with Costco to bring to shelf a 32 oz. multi serve version of Straw-nana Dream, the best-selling SKU in its best-selling Smoothie line.

Smoothies have emerged as the brand’s “big innovation bet,” according to Hunter, “because it clearly paints how we are the next $400 million brand.” In contrast, the discontinued Coffee and oat milk-based Thrive lines strayed too far from Koia’s simple message of “low sugar, plant-based and delicious” by reaching into functional ingredients (MCT oil, moringa and various mushrooms, among others) that “didn’t resonate with our consumer base.”

“If we keep it simple and keep with what our brand stands for, we can’t lose,” he said.

Ayr Wellness Agrees Deal to Acquire Cannabis Seltzer Brand Levia

Ayr Wellness Inc. has entered into a binding letter of intent to acquire 100% of Massachusetts-based Cultivana, the parent company of cannabis-infused beverage brand Levia, for $20 million, the two companies announced in August. The transaction is for $10 million in cash and the rest in stock. An additional $40 million will be paid in shares based on performance in 2022 and 2023. The deal is expected to close at the end of this year.

Massachusetts-based Levia only recently launched its line of THC-infused flavored seltzers, but the brand has quickly found its footing. The three SKUs — Achieve (Raspberry Lime), Dream (Jam Berry) and Celebrate (Lemon Lime) — feature sativa, indica and hybrid-dominant blends, each with 5 mg of THC per 12 oz. slim can. The company also recently introduced those same three varieties as water-soluble tinctures. Sourcing its flower from in-state partner cultivators, Levia extracts, infuses and manufactures its seltzers and tinctures at its production facility in Georgetown, Massachusetts.

Despite launching roughly six months ago, Levia has made an instant impact in the company’s home state, where it retains 80% of the market share in THC-infused beverages.

We believe this is a key factor in making Levia an approachable and sessionable choice for new and existing customers and will be key to unlocking many potential consumers who are interested in cannabis but haven’t yet brought themselves to try it.

With anchors in both Nevada and Massachusetts, Ayr Wellness is a multi-state cannabis operator that has been on something of a spending spree as it steadily expands its footprint nationwide. In recent months, fueled by an injection of $120 million in equity and $110 million in debt financing, the company has acquired Florida-based dispensary Liberty Health Sciences, as well as dispensaries in Illinois, plus cannabis companies in Nevada and Pennsylvania.

The company offers flower (Kynd), vapes, extracts (Origyn), edibles, pre-rolls, and topicals. Ayr also markets beverage brand CannaPunch, a line of THC-infused flavored fruit punch drinks. During an earnings call in August, the company raised its revenue target for 2022 to $800 million. Ayr’s Q2 2021 increased 222% from the same period last year to just over $91 million.

In an email to BevNET, Ayr said that Levia brings the company “into the rapidly-growing infused beverage segment, with an industry-leading formula that provides a fast, predictable onset, and maximum bioavailability that makes sure consumers get the full 5 mg of THC that they paid for.”

More specifically, the company said the 15-20 minute onset time for consumers to feel Levia’s effects is a key factor in making the drink approachable and sessionable, critical components of unlocking canna-curious drinkers.

“With a formula that provides consistently great flavor and zero calories in an infused beverage experience, we believe Levia has enormous potential as an alcohol alternative,” said Jonathan Sandelman, CEO of Ayr Wellness, in a press release. “In just six months since its initial launch in Massachusetts, Levia has become the top selling THC beverage. As we finalize our updated national brand portfolio to address all segments and form factors, Levia will play a marquee role in each market where we operate.”

Levia joins a cohort of brands like Cann and Keef Cola developing low-dose THC -infused drinks. According to a recent report from market research group Brightfield, cannabis beverages maintain about a 1% share of the recreational cannabis market.