Canopy Growth Launches CBD Sparkling Water in U.S.

Canadian cannabis manufacturer Canopy Growth today announced the online launch of its first CBD-infused drink for the U.S. market: Quatreau, a four-SKU line of flavored zero-sugar sparkling waters containing 20mg of CBD per 12 oz. can.

Quatreau’s initial flavor lineup includes Cucumber + Mint, Passionfruit + Guava, Ginger + Lime and Blueberry + Acai. The line debuted in Canada last year, where it has become the “top-selling ready-to-drink CBD beverage,” according to the company. In the U.S., Quatreau will be sold exclusively online (shipping to 32 states) for a suggested retail price of $3.99 per can.

Beer and spirits conglomerate Constellation Brands owns a 38.6% stake in Canopy, having initially invested in 2017 before increasing its share last summer. Last year, the company introduced multiple THC and CBD-infused drinks in Canada including Tweed, Houseplant and Deep Space.

“We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic in a press release. “Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option.”

According to the release, the launch date was chosen to coincide with the astrological event known as the “Age of Aquarius,” meant to herald the beginning of a “brand-new age.” As such, the brand has partnered with celebrity astrologist Susan Miller for a digital awareness campaign.

“Astrology has made a major pop culture comeback as people turn to the stars for guidance during what has been an unsettling, uncertain, and stressful time for many,” said Canopy Growth Vice President of Beverages Tara Rozalowsky. “With this campaign, we’re highlighting the role functional ingredients like CBD can play in helping people manage their stress, find moments of calm and prioritize wellness during this once-in-a-lifetime transitional period.”

The introduction of Quatreau marks the second U.S. debut for a major Canadian cannabis brand with ties to the alcohol industry in a matter of months. In January, Truss CBD USA, a joint venture between majority owner Molson Coors and Canadian cannabis manufacturer HEXO, launched its own zero-sugar flavored sparkling water (also with 20mg of CBD) in Colorado. Meanwhile, Pabst Blue Ribbon announced in October its plans to introduce a “sessionable” non-alcoholic cannabis-infused seltzer in California in partnership with processor Vertosa.

According to cannabis research firm The Brightfield Group, the U.S. CBD market is expected to reach $23.7 billion by 2023. Both CBD and THC-infused beverages represent a small piece of the overall category — currently 4% for CBD and 2% for THC — but have disproportionate consumer adoption rates, meaning there is ample room for growth, according to Bethany Gomez, Managing Director at Brightfield.

“With the partnership with Constellation, Canopy has bet heavily on their ability to transform the cannabis/CBD drinks space, make these products mainstream amongst consumers across North America, and dominate the playing field,” she said. “The recent moves with Quatreau and Houseplant are extensions on this strategy, launching products that have been years in the making into some of the largest markets in the world.”