Rather than helping brand-new consumers dip their toes into the burgeoning cannabis space, THC-infused soda brand Drippy is aiming to convert the true believers.
The California-based brand began testing that theory upon launch late last year, introducing its three-SKU line of infused fruit-flavored sodas — Citrus Fade, Strawberry Haze and Grape Sunset, all with 10mg THC and 10mg CBN per 12 oz. can — to retailers in the Golden State. Promising rapid-onset effects and aimed at the creative community, Drippy is one of the few low-dose cannabis beverages that is targeting more experienced consumers.
“I was in the industry for all these years tracking kind of the early conversations around beverages coming into the space and I basically just thought there’s no way we’re going to transfer this (smoking) habit into a beverage format,” explained Alleh Lindquist, one of Drippy’s co-founders. “That started changing for me as we actually saw some of the technology components get solved, like rapid uptake.”
That approach may run against conventional thinking; in California, experienced cannabis users have made high-dose beverages (see: Uncle Arnie’s) king, but low-dose, low-sugar sparkling drinks like Cann, Levia, Hi-5 and others have been designed as inviting and less intimidating entry points into the category for new or lapsed cannabis users. Drippy’s strategy falls somewhere in between, offering a full-flavor soda experience (80 calories, 20 grams of sugar per can) with rapid onset and just a slightly higher THC payload. When it reacts with the THC, the addition of 10mg of CBN creates an elevated body high effect that the brand calls “Full Drip.”
According to the brand, that positioning — “Not A Soccer Mom Seltzer,” as marketing copy declares — is important for Drippy’s target consumer because it complements existing behaviors, rather than attempting to create new ones.
“It’s actually become the smokers favorite drink because we haven’t also pitched it as a replacement; we’ve pitched it as an enhancement,” said co-founder Ryan Lange. “So if you’re in the studio with your friends recording music and you’re smoking weed, you could also be drinking our drink or you could also be mixing it with your favorite alcohol or your favorite other sodas. We’re an enhancement product, and we found that that little niche has been great for us because we don’t have that competitive competition piece.”
The proposition is enhanced by Lange and Lindquist’s respective backgrounds within the cannabis industry; Lange was a partner in cultivator Next Green Wave Holdings, which exited in 2021, while Lindquist co-creating cannabinoid extraction, manufacturer and distributor Swell Companies Limited alongside Michael Thale, Drippy’s third co-founder. In other words, these aren’t “canna-curious” types; the brand believes its “authenticity and deep understanding of the cannabis consumer” gives it the inside track with legacy consumers that care about brand loyalty and are frequent purchasers. In targeting that group of more sophisticated cannabis consumers across Southern California, Drippy is starting with high-velocity retail locations in San Diego, Los Angeles and Palm Springs, with the latter valued for its access to upscale tourist venues reachable via delivery platforms. The product is currently available in around 30 locations.
For that strategy to work, however, wrangling with current category unit economics is a challenge. Lindquist noted that Drippy — which wholesales for $3 and retails for around $5 per can — will soon be produced at Delta Bev, a new Los Angeles-based manufacturer specializing in cannabis beverages, which will allow it to move towards wider affordability. The brand is also limited by conflicting state and federal laws, meaning its entrance into new states like Florida and Texas will come via hemp-derived delta-9 THC drinks rather than the cannabis-derived versions which have been embraced in California.
Drippy is also aiming to cut through the noise of the category by leaning into partnerships in entertainment, digital content and technology. That includes leveraging the large influencer network of its investment partner, UnderCurrent Entertainment, which specializes in talent management and marketing for digital creators, to build brand awareness. UnderCurrent’s investment comes as part of an ongoing $1 million seed funding round via SAFE notes that also includes Koia co-founder Chris Hunter, as well as several NBA players and a pro skateboarder, according to the brand.
The actual promotional tools, however, are being built in-house and include an augmented “Drippy eyes” reality (AR) filter for mobile devices that has been used almost 2 million times on WhatsApp and Instagram. The brand is also offering access to its online community High Club through NFTs. Offline, Drippy is planning a bodega pop-up in Chicago this summer that will offer special events and limited run brand merchandise.
Though the sodas are the focus, Drippy is also looking to offer experienced cannabis users a familiar high-potency format with Deep End, a 4 oz. concentrated shot with 100mg THC per serving.