Curaleaf Enters Seltzer Stakes with Endless Coast
International cannabis conglomerate Curaleaf is entering the beverage market with the launch of Endless Coast Cannabis-Infused Seltzers in Massachusetts this week.
Curaleaf has emerged as one of the fastest-growing vertically integrated producers in the red-hot marijuana market; according to TIME, it is now the world’s largest cannabis company by revenue, surpassing $1 billion in revenue over the past year.
Launching new products — 147 in the last 12 months — is a big part of the company’s growth strategy as it looks to attract both experienced users and novices. And, as other cannabis brands have also tried, beverages are an ideal platform to onboard the latter group, according to Kate Lynch, SVP Marketing at Curaleaf.
“Endless Coast was created to provide an accessible entry point for those that are new to the cannabis category as well as those seeking a controlled, highly sociable experience,” said Lynch. “Ready-to-drink beverages have seen explosive growth in the alcohol category and we believe that cannabis will be no different.”
Endless Coast comes in 12 oz. slim cans in four flavors: Lemon Ginger (2.5mg THC), Orange Mango Jalapeño (5mg THC), Lime (5mg THC) and Grapefruit & Botanicals (2.5mg THC and 2.5mg CBD), each with an onset time of around 15-30 minutes. Grapefruit & Botanicals and Lemon Ginger each contain 20 calories, while the others have 15 calories per can. All contain 2 grams of sugar. The suggested retail price is $4 per seltzer or $14 for a 4-pack.
Within Massachusetts, Endless Coast is set to enter one the East Coast’s most developed cannabis beverage markets. Adult-use dispensaries in the Bay State currently offer products like Cann and Quatreau (Canopy Growth), as well as Theory Wellness’ Hi5 (see next story) and LEVIA, which was acquired by Ayr Wellness in 2021 less than a year after its launch.
“New England has a rich history of incubating successful craft and independent beverage brands, and we are thrilled to launch Endless Coast beginning in Massachusetts, where we have four dispensaries, including Provincetown, a summer destination location,” said Lynch. “As one of the fastest-growing cannabis regions in the country, we believe in the enormous potential of cannabis beverages in the Northeast at large.“
To encourage trial, Endless Coast’s price point “must be comparable to a premium hard seltzer,” Lynch added, as “meaningful growth of the cannabis beverage category will come from adding cannabis to the repertoire of alcohol drinkers.“
Last week, the Massachusetts Cannabis Control Commission reported that Massachusetts adult-use cannabis sales — spread across 216 retailers and 11 delivery businesses — have surpassed $3 billion since the market launched in 2018. According to market research group BDSA, Massachusetts was among the top four cannabis beverage growth markets between Q4 2020 and Q4 2021, with dollar sales more than doubling during that time.
“As with all markets, we look at non-revenue commercial indicators such as consumer adoption, repeat purchase rates and customer feedback,” Lynch said. “We were very deliberate about launching it at the start of the summer season, and we’re confident that positive word of mouth will spread quickly.”
Hi5 Adds Energy As Platform Expands
As Endless Coast makes its first moves into Massachusetts, Hi5 is going deeper into the Bay State with the limited launch of its second SKU, Hi5 Energy, this week.
Since first introducing its low-dose (5mg THC) infused seltzer just over a year ago, Bridgewater, Mass.-based Theory Wellness has been active in building the brand into a robust, multi-state beverage platform. Now available in over 60 dispensaries across its home state and Maine, Hi5 comes in six flavors — Lime, Peach Mango, Lemon, Grapefruit, Black Cherry and Pomegranate — with seasonal SKUs sprinkled in for good measure. According to a press release, the brand has sold close to 1 million cans since its debut.
The concept of bringing a THC-infused energy drink into Hi5’s portfolio was inspired by consumer feedback, according to Thomas Winstanley, VP of Marketing for Theory Wellness.
“I think with a company like ours, we always have a lot of ideas of where something can go, and energy drinks were something we were already thinking about,” Winstanley said. “But instead of assuming what the audience was going to want, we polled them and there was an overwhelming desire to have an infused drink that had caffeine in it. And I think in fairness we’re seeing products coming into the market in Massachusetts that have an additive outside of cannabis, like ashwagandha or melatonin. So it was almost par for the course.”
While most THC-infused beverages tend to emphasize their relaxing rather than energizing effects, the pairing of caffeine and cannabis has precedent, mainly through coffee. Creating an energy drink offers an opportunity for Hi5 to connect with other consumer groups like gamers and athletes, Winstanley noted, but also created a challenge for formulation.
“When you say ‘energy drink flavors’, it’s really hard for a consumer to say a Red Bull tastes like this, or Monster tastes like this; it’s almost like they have their own flavor profile. So for us to kind of back into some of the taste preferences of our consumers, [it] took a lot of R&D, and we landed on this very nice kind of grilled citrus taste profile that’s gotten a little bit of that flavor of an energy drink, but it doesn’t shock your taste buds in an electrifying way.”
The resulting product comes in at 5mg THC and 80mg caffeine per 12 oz. slim can, and comes in regular and sugar-free versions. Hi5 Energy is now available at Theory Wellness retail locations in Massachusetts in Bridgewater, Chicopee, and Great Barrington. The product will be priced higher than Hi5 seltzers (4-packs are $18, compared to $15), but unlike those drinks, it will also be sold in single cans for $5.50 each.
On a broader level, Hi5 Energy is a sign of the brand’s ambitions within the overall beverage space, even as its identity is still being molded.
“(Hi5) is still relatively young and new and it’s growing and it’s evolving and its identity is still coming forward,” said Winstanley. “At the end of the day, we know one thing for sure, though — this is a brand that is meant to be social. It’s meant to be fun. And it’s meant to be something that is translatable (to various products).”