Four Loko, Koia Founder Chris Hunter Invests In Cannabis Beverage Brand Drippy

Drippy

Drippy Enterprises, the makers of THC and CBN-infused Drippy Soda, announced that beverage investor and brand leader Chris Hunter has backed the company’s seed funding round in addition to joining as an advisor. Drippy recently began raising funds and intends to bring in approximately $1 million in capital.

Hunter, who created malt beverage line Four Loko before moving on to co-found refrigerated plant-based protein brand Koia, where he is currently CEO, called Drippy a “game changer.”

“I’m excited to be a part of this project and to bring my experience in the beverage industry to the cannabis space,” said Hunter, in a press release.

The brand was founded by Alleh Lindquist, co-founder of hemp refinement laboratory FloraWorks, Ryan Lange, co-founder of SD Cannabis (acquired by Next Green Wave in 2019) and Ryan Lassi, who spent nearly a decade in culture-focused marketing roles at Red Bull. Drippy officially launched in California in October and is currently available in nine adult-use dispensaries across the state.

Thanks to its use of a nanoemulsion, Drippy boasts an accelerated onset time of between 10 to 15 minutes, the company claims. The product is available in Citrus Fade, Strawberry Haze and Grape Sunset flavors and contains 10 mg THC and 10 mg CBN, plus 80 calories and 19 grams of sugar.

“Most [cannabis beverage] products are low calorie, sugar-free seltzers or tonics that lack a true beverage experience,” according to press materials provided by the brand. “Legacy cannabis consumers don’t identify with most beverage brands that are currently in market.”

Drippy aims to set itself apart from beverages both within and outside of the cannabis space, with marketing messages claiming its “not an alternative to alcoholic beverages” and also is “not a soccer mom seltzer.” Instead, the brand hopes to be a beverage for long-time cannabis consumers who it believes the emerging market often overlooks.

While cannabis laws vary by state, nascent CPG brands have found room to grow within a loophole in the 2018 Farm Bill which defined legal hemp as any part of the cannabis plant that contains less than 0.3% THC in dry weight. As long as hemp is used as the source material, processors are free to extract as much CBD, THC or other available cannabinoids as they want, and create legally compliant products at any dosage level.

Against that backdrop, Drippy team plans to launch in the hemp retail market in Texas this quarter with an alternate variety to soda with a product that features hemp-derived Delta-8 (D8) THC. The team believes it will be able to propel the brand’s growth in hemp retail spaces since the market is less restricted than the regulated cannabis retail space and intends to secure placement in c-stores, specialty retail and DTC channels. The sale and distribution of recreational and medical Delta-9 (D9) cannabis products remains illegal in Texas.

To build brand momentum and awareness, Drippy has created an immersive web3 experience within the metaverse that hosts live events and doles out member only promotions to active participants. The company also sells a line of apparel on its direct-to-consumer platform, including sweatshirts, hats and a handmade varsity jacket that retails for $1,200. The brand’s four-pronged marketing plan also includes product seeding among celebrities and on-premise and retail activations with the goal of developing an ambassador program.