Vermont Hemp THC Player Upstate Elevator Links With Johnson Brothers In Key Minnesota Market
September 3, 2024Vermont-based cannabis and CBD producer Upstate Elevator Supply Co. has launched a new line of 10-mg. hemp-derived cannabis beverages in Minnesota. The line comes in three flavors—Blackberry Zinger soda, Passionfruit seltzer, and Orange Pop soda—and is produced at Surly Brewing Company. Upstate partnered with Johnson Brothers and its Artisan Beer Company division to bring the new drinks to market. The new release will be available at liquor stores and retailers across the state and join Upstate’s existing line of 1- and 5-mg. hemp-derived drinks and gummies in the state.
The new releases are meant to address consumer demand, says Kelsy Rapp, director of education and outreach at Upstate. “When we first went to Minnesota, we were checking out all of the options, all the competition. There are a lot of five milligrams on the shelves, but what all the retailers were telling us was they don’t move,” she says. “Our distribution partner was interested in brands that were offering 10 milligrams.”
The company is bullish on Minnesota, due to the state’s clear and open regulatory environment, says Rapp. “They really understand that this is a category that the public is driving interest and demand for,” she says. “The fact that they really supported everything well, and that a heavy liquor channel distribution strategy means that these beverages are getting age-gated. It means that they are inherently being put in front of people who they’re appropriate for.”
Johnson Brothers was considered an ideal partner for Upstate due to their familiarity with the market, existing hemp-derived portfolio, and multi-state presence. While the new 10-mg. drinks are exclusive to Minnesota for now, Rapp says Upstate is exploring expansion into other hemp-friendly markets with the distributor. “What we really appreciate is the experience that Johnson and Artisan Beer are bringing, and given that we are entering the beverage category as a bit of a novice in that industry,” she says. “We felt that we would be better served with a very experienced distributor.”
Beyond the new 10-mg. beverages, Upstate offers 1-mg. and 5-mg. options that are balanced by CBD. The lowest-dose products, Rapp says, are for consumers looking for the relaxing benefits of cannabis but without noticeable intoxication. The company also is a popular producer of CBD, CBN, and products with other minor cannabinoids. “What we do best is cannabinoid formulations, and that is what people come to us for,” says Rapp. “The formulas are quite specific and super consistent. It can be really tricky to find really consistent results in this industry.”
The company’s portfolio, says Rapp, allows them to meet a variety of consumers where they’re comfortable, whether they’re seeking a buzz or non-intoxicating improvements to sleep or relaxation. She estimates that, right now, roughly half of the interest in Upstate’s hemp-derived and cannabis products are coming from existing Upstate customers and half are new to the company. “The THC products have really generated the most new customer acquisition of any other category launch that we’ve done and are skewing relatively younger than our typical demographic,” she says, adding that younger for Upstate means consumers in the late 20s through their 30s, compared to the company’s original 35+ audience.
Upstate’s THC offerings aren’t just reaching new consumers, says Rapp. “In our store, what we’re seeing is lots of CBD customers who hadn’t really been interested in our THC regulated product line at all, slowly starting to experiment—and definitely older customers who had a fear of THC,” she says. Uptake of Upstate’s 1-mg. options has been the entry point for many of these consumers.—Shane English
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