EXCLUSIVE: Raising The Bar, How Cannabis Beverages And Lounges Are Changing The Game

Cannabis beverages and consumption lounges are two key segments that can help the cannabis industry reach new consumers. However, introducing cannabis products to people who are not familiar with them can be challenging. To succeed, products must be familiar and approachable and the dosages must be controlled.

At the recent Benzinga Cannabis Capital Conference, industry experts discussed how to make cannabis products more accessible. Jay Garnett, CEO of XEBRA Brands, said creating familiarity is an easier way to approach the market.

When XEBRA Brands launched Vicious Citrus, a lemonade-based cannabis beverage in Canada, they chose a familiar flavor to which consumers have an emotional response. The goal was to make it easy for consumers to try cannabis in a way that felt familiar.

Dosage is also an important consideration for cannabis products. In Canada, the government taxes cannabis based on THC percentage, which doesn't necessarily reflect the quality or value of the product.

This taxation structure can create confusion for consumers and make it difficult for brands to differentiate themselves based on cannabinoids.

Additionally, brands need to be careful about dosages, particularly in consumption lounges where people may be ordering multiple drinks and also consuming edibles.

Controlled Experiences

Creating normalized establishments with cannabis beverages that replicate beer can be a solution to some of these challenges. Sara Stewart, CEO and co-founder of Ritual Cannabis Hospitality suggest that entertainment-first establishments with bartenders who control the environment and dosages could be the key to success.

Sara is a pioneer in cannabis hospitality and has experience operating licensed cannabis lounges and restaurants in LA's nightlife scene, and co-created the first and only cannabis hospitality points of sale.

Stewart noted the dose of cannabis in lounges is a challenge due to the supply chain issue that was built for retail. The alcohol industry has provided insight into what a single serving looks like, and for lounges, 2 mg is needed for control compared to the 100 mg that does well in retail.

“When 40 lounges come to Nevada, there will be room for single serving concentrates and prerolls tastings,” added Stewart.

Photo Credits: Cannabis CPG BZCCC By Benzinga (Creativan on Shutterstock).