As the slow grind of regulatory bureaucracy continues to stunt expansion of the CBD beverage market, infused sparkling water and gummy maker Daytrip is the latest brand to branch outside of the hemp category with its new product line: Daytrip Prebiotic Soda.
The soda line is set to give the California-based brand a secondary avenue into natural and conventional channel retail outlets, while also offering a differentiated take on the gut health friendly functional soda trend ushered in by brands like Olipop, Poppi and Culture Pop.
In addition to containing 5 grams of fiber from agave inulin per 12 oz. can, the sodas also include the same mood-lifting, proprietary terpene blend found in Daytrip’s flagship CBD sparkling water drinks, which co-founder and Chief Creative Officer Bill Kerr said will give the brand a key point of differentiation in the fast-crowding prebiotic soda set while also remaining true to the brand’s core position as a relaxation products company.
“We’ve always been about more than just CBD; we talk about ourselves as a mood elevation company and basically we’re using plants to make the world a happier and healthier place,” Kerr said. “Now with consumers becoming increasingly aware of the mind/gut connection when it comes to both physical and mental wellness, we felt like this was a perfect opportunity for Daytrip to add something to this conversation.”
The sodas are USDA Certified organic and available in Berry Citrus, Clementine, and Grapefruit Lime flavors. Each can contains 30 calories and 5 grams of sugar, and will retail for $3.49.
Founded in 2019 by a team of CPG industry veterans, including CEO Shawn Biega and former Rockstar Energy exec Joey Cannata as president, Daytrip’s CBD-infused sparkling waters and gummies are currently available in about 1,500 stores nationwide and are also sold through CBD-friendly distributors such as Republic National Distributing Company. However, according to Cannata, while Daytrip has roughly doubled its sales this year, the lack of regulations for CBD in food and beverage has been a major hurdle towards scaling the company.
“The CBD business is alive and well and growing, but having a non-hemp entry into the beverage sector is just going to really take our company to the next level because there are no regulatory headwinds,” Cannata said. “It’s still kind of just a regulatory waiting game, and so we’re not going to wait anymore. We’re just going to put out products where we don’t have to be at the mercy of the federal government.”
Within the CBD beverage category, Daytrip is far from alone in wanting to get a move on and establish the brand in mainstream outlets; top competitors like Recess, VYBES and Weller have all introduced non-CBD lines over the past two years that have helped open new distribution and retail outlets that previously wouldn’t risk stocking cannabidiol drinks, which are regulated in some states but not on a federal level.
While Cannata said he has hopes that the proposed 2023 Farm Bill – currently the subject of U.S. Senate hearings – can finally clear the pathway for CBD beverages to break out of the legal gray zone, expanding the brand outside of CBD also allows Daytrip to, in Biega’s words, “expand our gospel to a whole different audience.”
The prebiotic sodas began rolling out to retailers last week, including retail chains like Sprouts, Erewhon, Total Wine & More, Lazy Acres and Lassens, among others. In addition to existing retail accounts and distributors – of which the vast bulk have agreed to take on the sodas, according to the co-founders – the line is helping add new distribution partners like UNFI and KeHE. Cannata added that the line will also help drive ecommerce sales, as digital marketing is often limited for CBD-infused products.
Daytrip is also now expanding its sales team in order to support a rapid retail expansion plan, Cannata said. While it has received interest from a variety of individuals and family offices looking to invest, he said the goal is to further establish the brand and generate more revenue before taking on institutional financing.
The regulatory challenges also haven’t stopped the company from pushing ahead with its CBD products. Earlier this year, Daytrip reformulated its core sparkling water line to increase the CBD content from 10 mg to 25 mg per 12 oz. can, and also added Blackberry and Grapefruit flavors.
According to Kerr, the gummies have also performed well and, because they’re classified as supplements rather than food, has helped Daytrip to open new doors. The company is now exploring additional innovations on that line.
While Daytrip now has to contest with a new slate of fast-growing prebiotic sodas – including extensions from other established brands like Health-Ade, REBBL, Humm, Revive and Vive Organic – the co-founders are confident in the strength of the branding to drive sales, while cans-in-hand sampling and influencer marketing will form the backbone of consumer awareness campaigns.
And when the day arrives that the government gives CBD beverages the green light, Biega said Daytrip ideally will already be familiar to a whole new set of consumers.
“Eventually, when the federal government decides to open the floodgates and allow us to sell to the broader market, at a national level, they’re all going to be familiar with what makes Daytrip special,” he said. “They’ll get to try our CBD-infused products as well and still be able to maintain what they expect from a Daytrip product as they go into new categories. So we’re really excited, this just seems to connect the dots for us.”