Tourism and gaming casinos have been common revenue streams for Indigenous groups, but the Soboba Band of the Luiseño Indians is adding functional beverages to that list.
Launched last month, RIVR is one of the first beverage brands owned exclusively by an individual Indigenous group.
“RIVR is unique in the sense that it is a tribal export,” said Sasha Pachito, Director of the Soboba Economic Development Corporation (SEDC) which owns the brand. “It is our first product that generates revenue beyond our reservation base showing a tribal capability to create, market and sell a product.”
The tea-based, uncarbonated drink is available in three flavors: Mango Passionfruit, Raspberry Hibiscus and Blackberry Lavender. All three are sold either microdosed with 5mg hemp-derived THC or non-psychoactive. The first two “Adventure” varieties are caffeinated with yerba mate adding the functional benefits of lion’s mane and cordyceps mushrooms for energy and mood enhancement. “Serene” pairs lavender tea with reishi mushrooms and ashwagandha for relaxation.
The Soboba Band of Luiseño Indians is a federally recognized tribe situated in Southern California about halfway between the metro-Los Angeles area and Joshua Tree National Park. After decades of litigation, the Indigenous group was able to secure its water rights over the San Jacinto River through a years-long legislative process.
A Communal Approach To Brand Strategy
The beverage venture is “100% owned” and funded by the Soboba Band of Luiseño Indians through the SEDC,” said Pachito.
Similar to RoadRunner Express, the tribal convenience store and gas station, the SEDC manages the day-to-day operations of RIVR, but also takes direction through its shareholders, who are voting-eligible tribal members. Those decisions are also brought to Soboba Tribal Council as well as the larger Soboba tribal membership.
“We make programmatic decisions [for RIVR] but, ultimately, the tribal council and the shareholders have the final say,” Pachito said. “Right now, how we operate and how we hope to continue to operate is with the SEDC and Tribal Council in partnership for the greater good of the Tribe.”
“The goal of the SEDC is to provide for the next seven generations. This means we not only think of current economic gains but also of our future generations,” she added. “This is a product that aligns with our values, goals and mission as a corporation. It’s something that the tribe itself would be proud to put out, that shows us in a good light and uses our voice in the community.”
Building A Beverage Business
RIVR initially developed out of a shared interest between the SEDC and the Council to develop a business around recreational cannabis. The brand’s general manager Chad North, who was recruited from outside the Soboba Band to consult on the project, suggested a pivot into functional beverages that included a hemp-derived THC line as a way to bring something that was representative of the Soboba people.
“From the start, the goal was to diversify and limit our risk around being pigeonholed into hemp only,” said North.
Having a foot in both functional and psychoactive categories allows RIVR to build awareness in California – where hemp-derived THC products are currently restricted – while also being “ready to turn it on” when regulations change, he said.
“It is a tricky landscape that you have to monitor in real time. One state could swing one way or the other very quickly and so you have to be aware not to over-invest necessarily in one area or be completely bought in to then have the rug pulled out from you,” he said.
It is a strategy that BRĒZ, High Rise Beverage Co. and many other hemp-derived THC brands have deployed, opening up more ecommerce opportunities on platforms like Amazon while also providing an entry point for potential consumers who might be initially hesitant to try THC drinks.
RIVR worked with Hermosa Beach, Calif.-based beverage formulator Ocean Blue Innovation on the initial recipes and has signed on with Tenessee co-packer Life Is Brewing for its second production run.
In contrast to ventures like gaming or tourism that generate revenue by attracting visitors to tribal lands, RIVR is a “Native American-owned product that’s going out to the world,” North said.
The tribe’s requirement to share decision-making responsibilities has its challenges, he acknowledged.
“At the same time, if you look at the brand essence and what it’s meant to do,” he said. “Its purpose is to serve. And that’s really beautiful because it’s allowed us to build a lot of amazing connections within the tribe.”
RIVR was launched in December, but has already set some ambitious targets; the brand is exploring how to create a distribution network between different tribal groups and open up a more traditional retail channel model, while also targeting different types of retailers for its varieties.
For its non-psychoactive functional SKUs, RIVR is in conversations with natural channel operators. With its microdose THC line, “it is one step at a time to understand each state’s regulations and choose very carefully.”
“But there are a lot of wins to be had in there as well,” he said. “It’s pretty wide open right now.”