As with many beverage entrepreneurs, co-founders John Enghauser and Nicole Bray were inspired to enter the drinks game as a means of meeting their own demand – in their case for a non-alcoholic cocktail alternative. Three years later, with the introduction of its new line of THC-infused drinks, New York-based Jeng is fully embracing the call for a ‘better buzz.’
Jeng first hit shelves in 2021 with its flagship line of zero proof cocktails made with 11 grams of CBD per 240 mL serving (out of a 355 ml can), and according to Enghauser the brand is currently sold online and in stores around “key regions” throughout the country including its Montauk, Long Island homebase and in areas targeting higher income, “metropolitan” female consumers. The brand is primarily sold through non-alcoholic spirits boutiques and other independent accounts, he said.
Jeng was born from Enghauser’s own history with chronic health issues stemming from an inner ear infection he had roughly 20 years ago, which has caused him migraines, vertigo and other “things of that nature” that can be triggered by certain factors – including alcohol.
“I’ve always embraced drinking culture, I enjoy alcohol,” he said. “But I just was never able to drink a lot of it.”
With its new THC line, the brand will now be looking into new channels, including cannabis dispensaries, as well as markets like Minnesota which recently cleared the way for THC-infused products to sell in more conventional outlets.
Jeng’s sparkling THC cocktails contain a “microdose” of 3 mg of hemp-derived Delta-9 THC and 6 mg of CBD per 12 oz. can and are available in Spicy Blood Orange Margarita, Rhubarb Cucumber Spritz, Paloma and Moscow Mule varieties. Each 4-pack will retail for $20.
According to Madeline Scanlon, cannabis insights manager for market research firm Brightfield Group, the microdose trend – generally products ranging from 1 mg to 5 mg of THC per serving – has found a “sweet spot” in beverage, with hemp-derived products driving a significant amount of innovation. She pointed to cannabis drink maker Cann as a leader in the trend, which has built a sizable cross-demographic consumer base with its line of low-dose ‘social tonics.’
“Knowing that this is a trend that consumers are picking up on – they keep coming back for Cann, and Cann continues to expand in new states – it shows that if you can nail it, and really talk to that audience and get them to come into the dispensary to get you, you can be very successful within the microdosing trend.”
For Jeng, Bray and Enghauser believe that there’s also an opportunity for their brand to play in both the CBD and THC set, suggesting that consumers may reach for a different product type on different occasions.
“Just as someone is looking for the difference between a Sancerre or a Chardonnay, some people enjoy the CBD option and others are looking for something a little more impactful and they would prefer the THC,” Bray said.
The founders told BevNET that the bulk of their marketing has been focused on the online channel and about 80% of its D2C sales come through mobile devices. The company is employing influencers and brand partners with a “micro-targeted” focus on specific communities in “hemp-friendly states.”
Though Jeng strives to strike a gender neutral brand identity, Bray said the company is hoping to attract more women to the category, particularly slightly older consumers between their 30s and 50s who may be upper-middle class working professionals and/or mothers. Bray noted that Jeng studied the nascent Delta-9 THC beverage market and felt the vast bulk of brands had tailored their marketing towards young men, leaving women crucially underserved.
“The problem is that a lot of our competitors are sitting at 5 milligrams-plus and for most women that’s way too much,” she said. “No one wants to feel too high. No one wants to feel out of control. So having this lower dosage enables us to be accessible to many more people.”
According to Scanlon, Jeng’s theory about gender disparity in the THC beverage set is backed by the data. While women are continuing to become a larger share of the overall cannabis market, cannabis drinks have still over-indexed with men. Last year, Scanlon reported that, of parents who consume cannabis 1 to 4 days per week, fathers were 42% more likely than mothers to reach for a THC beverage.
“There’s this idea that the wine mom is switching over, where it actually might be the beer drinking dad right now,” Scanlon said.
Enghauser said Jeng now has its eye on states like Minnesota where regulations have opened up to allow the broader sale of hemp-derived THC products containing up to 5 mg per serving in mainstream channels, with on-premise being a major opportunity, he said.
However, while Minnesota has opened up the market for Delta-9, there’s more states that are restricting its sale (California, Colorado, North Dakota and Washington), debating its legality (Kentucky, Pennsylvania, Vermont) or outlawing it outright (Idaho). Scanlon suggested that most states may be waiting for an upcoming Farm Bill in Congress to see how it addresses hemp-derived cannabinoids.
“Short term, we anticipate more regulatory fluctuation from state to state as the Delta-9 beverage market is still in its infancy stage and as legislators learn more about it, but they’re all paying attention now, which is a good thing,” the founders said. “Recent changes have been less about banning and more about regulating dosages which we welcome and have been expecting. Long term, we continue to believe that the future of drinking will hold a prominent place for Delta-9 beverages.”
For Jeng, Enghauser also believes that there is “a lot of noise” in the category, particularly as beer brands look to offset declining sales by introducing THC seltzers, that the brand is poised to stand out among, thanks to its premium branding and cocktail-specific use occasions.
“Minnesota is really the mecca of hemp beverages right now, especially now with this latest legalization of marijuana,” he said. “So that’s one of the key states that we’re pursuing at the moment.”