Green Ocean Rising: Lifting Cannabis Drink Culture

The rising tide of cannabis-infused beverages may mean a decline of the wine, beer, and spirits industry but a new form of social culture, industry and value proposition for the emerging consumer base as well as a lifeline for craft breweries.

This title may seem misleading. I want to make something tremendously clear (clear as the Hemp Regulations in the great state of Texas) I am not writing about climate change and or algae. This is a long reaching metaphoric intro. There is a literal monster lurking in the ocean but I am not talking about the lurking monster algae bloom that is 5,000 miles long (8,047km) located along the coastlines of the Caribbean and the Gulf of Mexico that stretches all the way to the coast of West Africa. I am not talking about a global climate change per say that is resulting in giant clumps of sargassum seaweed washing ashore, choking the waves, covering beaches and leaving a stinking mass. There is a green wave that has already reached the shores of the United States.

I am talking about a climate shift domestically in the consumer packaged goods industry and the craft beverage industry as a whole. This green monster has been lurking since the dawn of the 2018 Farm Bill and has continually been growing and washing up in craft breweries, wine bars, and in dispensaries and out of dispensaries alike. This emerald hued behemoth rising is causing regulators to react, consumers to enjoy, cultures of companies to shift, and operators to innovate. The surf is lifting cannabis culture to new heights and introducing new waves. Today I am exploring the decline of craft beverages as we know it and touching on the rise of cannabis drink culture as an emerging trend. Companies will either grab a board and ride the rising oceans or curse the surf. Consumers will either bask in the green tides or be wrapped up in the regulations presented.

Now if you want to learn more about this remarkable phenomenon that actually is happening in the ocean you can read this article. It is affecting three different continents and may be more widespread than cannabis, but that is a different story. Read the "The real story behind the Atlantic's record-breaking seaweed blobs" by Sarah Griffiths a feature correspondent BBC

Backstory

Not too long ago bong rips and blunts were the cannabis consumption method of choice. Since the early 1960's cannabis culture was only deeply rooted in the counter-culture. From Grateful Dead concerts protected by Hell's Angels biker gangs to Curtis Jackson 50 Cent 's hit song "High All The Time" The perception was that cannabis was for California hippies and New York hip hoppers, and all about getting blitzed, stoned, and out of sync. Wine and or Vodka, meanwhile, was for deep thinkers, poets and hard-charging business types showing class and sophistication. Whiskey, Tequila, and or Mezcal, on the other hand has a masculine strength, for the rough and tough Clint Eastwood cowboy slamming down silver for a glass or on the frontier in a flask as you dug an arrow out of your leg as you needed to numb the pain.

Times sure have changed. Now, billionaire business titans, innovative scientists and eggheads alike are using cannabis publicly. Elon Musk lights up a medical grade blunt in the great state of Texas on the Joe Rogan Experience, Sir?Richard Branson takes edibles prior to launching Virgin space ships into orbit. Carl Sagan an American astronomer and planetary scientist long time cannabis user advocated for rescheduling during the peak of social stigma of the 1970's and the Nixon era of government and Microsoft mogul Bill Gates have joined the followers of Snoop Dogg, Dave Chappelle, Jerry Garcia, and other celebrities getting into and touting merits of marijuana. It’s become socially acceptable for suburban?soccer moms to indulge in a little gummy action when momma needs a break and microdosed—and openly admit it during their book clubs or during their parent teacher meetings.

Drinking wine, beer, vodka, whiskey, tequila etc.?meanwhile, has become increasingly associated with negative health outcomes and more?sinister aspects of villain motherhood, toxic fatherhood and or life in general in the post pandemic.

At this point, about 17% of Americans cop to ingesting marijuana according to a?February 2024 Gallup poll, an uptick from 11-13% between 2015 and 2021. This increasing comfort around cannabis stems, at least in part, from a much more liberal legal landscape. Read more about What Percentage of Americans Consumer Cannabis Here.

Why is this happening now?

Post Pandemic Alcoholism. In all seriousness I drank way too much in 2020 and looking back on it makes be turn to salt a bit. But turning away from alcohol and developing a cannabis drink wouldn't have come from that space and season. This feeling is not just one of mine solely but a lot of Americans and Texans battle alike.

Now understanding the root causes of this social trend can help you better capitalize on it.

? Hemp legalization: While cannabis is still federally illegal, it's legal to produce THC from hemp as long as it is compliant and in a state with a hemp program at the consumable level and production level. It makes sense that the legalization of a formerly illegal substance would lead to a rise in its consumption.

? Cannabis destigmatization: With more than two-thirds of American adults in favor of full marijuana legalization, we can also acknowledge that cannabis has been gradually destigmatized over the last several years. The 2018 Farm Bill introduced people to CBD and companies have not looked back. Most people recognize that cannabis has some drawbacks and potential risks but don't view it as foreign or scary as it once seemed since more education and exposure through familiar mediums have emerged.

? Recognition of alcohol's effects: My truck runs on ethanol better than I do. Even though alcohol is commonly consumed and widespread throughout the United States as a cultural norm, it can be incredibly dangerous. It impairs your judgment, distorts your decision-making, and can cause severe consequences for your health if you consume it irresponsibly. More people recognize that cannabis may be a preferable alternative.

? Social isolation: I drank too much on the farm alone. This created a habit that was hard to shake socially. Now when I recognized this it meant creating healthy boundaries in the home and at social events (I sold produce, products, and services so I must have social events to keep moving and learning). So I used alcohol alternatives, talked with people about it, and brought my own special beverages to outings, parties, or events. Now as we acknowledge post pandemic that we live in an era of increasing social isolation. And while it's certainly possible to drink on your own, most people prefer drinking socially and going alcohol free but ok with other natural sources. With fewer opportunities to drink socially, it makes sense why people may be turning to a new alternative.

? Reinforced trends: Young people are frequently subject to peer pressure and are highly influenced by their friends. If a young person's friends consume cannabis but no alcohol, they will likely follow suit.

The Surf Board: Hemp Derived Beverages and Company Adaptation

I enjoy long winded introductions (especially if it includes the idea of biology and other fun natural phenomenon) but as we get into the meat and potatoes we must understand that there will be winners and losers in the cannabis business space. As the first movers advantage wears off, marketing blooms end up having the petals fall off, and regulation becomes easier to establish, the cannabis beverage space will cool off. The companies that can grab their surf board and ride the wave will end up making it back to the beach and avoid the rough waters or reef sharks in the water. The surf board that companies need to ride have to have one of the following characteristics...

1. Remarkable activation capacity
2. Outstanding flavor and a storied brand (we can get more into that in another article)
3. Control of their own emulsion capacity and cost of goods

Activation Capacity

Collaboration. Collaboration. Collaboration. If you can get cannabis outside of the dispensary model or if you are vertically integrated you can become a flexible brand that can gain traction due to that flexibility. By being able to pop up and do guerilla marketing you can create demand, introduce products to new audiences, and give consumers what they want when they want it. Cannabis seltzers making their ways into coolers at hotel pool parties, RESTART CBD + THC Agave Lime RITA's showing up at a sandlot ball field during a May game, giving out dosed samples at acquisition party from a keg batch of low dose seltzer, the creativity is endless but the execution has it hang ups. Just because you sell into a market doesn't mean that it will continue to grow. You have to do market research, product activations, tastings with true connection to your ICP that makes sense with your CAC.

That Brand Tastes Good

I am not a negative person. In fact I have been told multiple times I am painfully positive. To a point of being annoying to most people and or people taking me sarcastically but that is not the truth. My positive demeanor comes from the pits that I have dug, mistakes I have made, and the humble heart that has been broken into me from God. Plus what is there to complain about if I get up every morning with a chance to serve others? Nothing because what would it help. Now I say this from a position of having the ability to make brands taste good. I haven't missed with a flavor profile for long. Now I say for long because brands that launch products with cannabis that don't taste good or have a story behind the taste will not last long. The connection to taste, profile, or the why behind it must be another board companies must ride to remain afloat in this rising green ocean. More demographics are shifting away from artificial flavors, asking more about what ingredients do versus blinding chugging that soda (thanks for elevating everything poppi ). But most discerning customers want all natural, organic, and or no artificial anything. This creates a challenge, how do I communicate that while making a product that tastes good? Good question, hope you studied chemistry. Both organic and human marketing chemistry (idk what liberal arts degree that is but it would slap, psychology?)

Control the Spice

This Frank Herbert Dune reference rings true. Those who control the spice control the market. So if you find a good source lock it down. Get into a contract pertaining to manufacturing capacity and get your packing and or barrelage right in the first year. You have to have the ability to keep up with your forecast and by owning your own emulsion source you won't get out too far ahead of your board. Riding the surf towards a trusted lab supplier and getting into a licensing agreement might seem daunting but not having your main ingredient during a peak run of popularity will get you eaten by the sharks in the green ocean.

50 foot wave

These are just 3 boards that can be chosen to get through these massive green ocean waves. I am more open to nautical themed suggestions but in all seriousness there will be more than just 3 ways to be successful. You must land aluminum at a price that is conducive to expansion with a trade off for storage, you must have quality control and assurance teams in place for traceability and standardization, and most of all you must have a source of emulsion to be set up for success. Culturally this is a shift from sports and beer, to activities and dosed beverages. Cannabis is allowing for a reimagining of social circles and how to enjoy your time in a more purposeful manner. This topic will continue to be explored and I am looking forward to what you think would be the right board to ride this green ocean wave. If you ever stop in Austin, Texas come by the store and lets noodle on it.