Also Machu Piccu's CEO announces he is moving on͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ 
 
 
November 02, 2023
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👋🏼 Total Wine & THC

👋🏼 Total Wine & THC

When it comes to forecasting the future of cannabis beverages in mainstream CPG, a history of false dawns and fake-outs have made it about as reliable as astrology. But as we wake up today, it feels like at least one big sign is looking particularly portentous. 

That's because – according to multiple posts from brand leaders on social media – national liquor retailer Total Wine & More has made the decision to take start selling hemp-derived delta-9 THC drinks in at least some of their 250-plus stores across 28 states, becoming the first big spirits chain to open its doors to the burgeoning new category. 

The inaugural class of beverages includes Cann, Cantrip, Trail Magic, Keef Brands and Kite Soda.

Brands like Cann have long envisioned the day when its product can compete on shelves alongside both alcoholic drinks and the exploding 'adult' zero-proof category (of which it is one of a class of THC-infused protagonists already). And in certain markets, where the retail conditions and regulatory environment are right for watching the experiment play out -- Minnesota being the prime example -- the category is performing: monthly sales of THC-infused beverages in the state are likely topping $1 million, per MJBizDaily. Local grocery chain Cub Foods picked up infused edibles and drinks across its 80 supermarkets earlier this year, helping beat a path for brands further away from the limitations of the adult-use dispensary channel. 

Getting Total Wine in the game only takes things a step further. The retailer, which picks up annual revenues of over $5.5 billion, has been active in growing its non-alcoholic options as well as expanding its store count, with CEO Troy Rice telling BevNET in September that an additional 15 to 20 stores are set to open each year over the next three years. 

The brands chosen for Total Wine’s dive into THC drinks also tell a story. Despite the presence of deep-pocketed alcohol players like Boston Beer and Pabst Brewing in the nascent category, the group of THC-infused beverages consumers will encounter at Total Wine is a mix of founder-led startups and established names that helped pioneer the space over roughly the past decade. Some of the same people who first had the vision of what low-dose cannabis drinks could become will now have the chance to test their theories and strategies, a well-earned right they’ve fought hard to gain. 

One potential knock-on effect to watch for? The impact on hemp-based CBD drinks, many of which have already introduced non-infused products to sidestep the regulatory gridlock. With THC out loud and proud, does CBD alone still inspire excitement? Not for distributor Southern Glazer's, which dropped its portfolio of CBD drinks earlier this year.

 

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🧠 Money on My Mind: Cognitive Drink Closes $1.3M Round

🧠 Money on My Mind: Cognitive Drink Closes $1.3M Round

While mental-focus and cognitive-boosting drinks are enjoying their current moment in the sun, innovation around those benefits has mainly happened in energy and coffee RTDs. That’s where Pennsylvania-based Evermind, which recently closed a $1.3 million funding round, sees an opportunit to pivot. 

🤔 Evermind produces a line of plant-based non-dairy “cognitive elixirs” available in 11 oz. cartons in three SKUs – Vanilla, Chocolate and Coffee. The formulation contains 10 grams of protein, ALA omega-3s from walnut and organic flax, Lion’s Mane mushroom, guayusa leaf polyphenols, and citicoline, which supports attention, focus and brain health. The drinks will retail for $4.49 per unit or online for $42 per 12-pack.

👋🏼 CPG marketing veteran Billie Thein, who previously co-founded plant-based milk brand New Barn, is also onboard as Chief Commercial Officer. 

📍 Besides e-commerce, Evermind is now looking to launch retail in independent accounts in the areas where Balencic and Thein are located, respectively central Pennsylvania and Southern California.

Read the full story on BevNET

 

🧗🏼‍♂️ Machu Picchu CEO Moving On To “Next Adventure”

Daniel Scharff announced this morning on LinkedIn that he is leaving the organic energy brand that he has led since February 2021. Scharff did not discuss the details of what was up next but expects to spend more time in his role as co-founder/CEO of Startup CPG, an organization that supports emerging food and beverage brands.

📈 Scharff came to the Santa Monica-based startup in its infancy and has helped build it into a national brand in over 2,500 retail doors. The beverage launched earlier this year in independent natural grocers like D’Agostino and Citarella in the New York City areas as well as Central Market and H-E-B in the Midwest and Texas.

🛒 At Natural Products Expo East this year, Scharff told BevNET that Machu Picchu was targeting “higher end conventional” stores as it expands its zero-sugar beverages from the original two-SKU Organic Energy (Ginger Peach and Pineapple Blueberry) to the two new Yerba Mate varieties (Alpine Mint and Ocean Citrus) announced in March.

 

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