Cannabis Drinks Player Cann In Expansion ModeFebruary 22, 2022
Los Angeles-based cannabis beverage company Cann is entering new markets as sales continue to rise. Launched in 2019, the brand took off rapidly, becoming the top cannabis drink in California by February of last year, with nearly $2 million in monthly sales at that time, according to Headset. Sales tripled over the course of 2021, according to the company, as Cann partnered with Green Thumb Industries to bring its line of low-dose tonics to Illinois consumers.
The brand, which retails at around $24 a six-pack of 8-ounce cans, also entered the Massachusetts and Arizona markets over the past year, and recently announced a $27 million series A funding round, with its backers including celebrity investors Nina Dobrev, Sara Foster, Paul Scheer, Adam Devine, Gwyneth Paltrow, Baron Davis, Rebel Wilson, Kate Hudson, and Rosario Dawson.
Now Cann has partnered with Truss, the joint venture between Molson Coors and Canadian cannabis producer Hexo, to bring its wares to Canada, where it’s aiming to sell 1 million cans in the first year. The rollout will begin in the coming months, starting with British Columbia, Ontario, and Alberta, Cann CEO Jake Bullock told SNDC. Truss will produce the Cann lineup—which includes flavors Blood Orange Cardamom, Lemon Lavender, and Grapefruit Rosemary (all 2mg THC and 4mg CBD), among others—at its facility in Belleville, Ontario.
“We’re very fortunate to be able to work with Truss in their facility, which is best in class, and are excited to continue to grow that partnership as we expand across the country,” Bullock said. “They have been fantastic partners, particularly the expertise that they have coming from Molson Coors on the beverage side and Hexo on the cannabis side. Unlike what we see, unfortunately, in the U.S.—because of the lack of interstate commerce—in Canada you can build a really smart beverage manufacturing facility that has all the right pieces and capacity to support a national market.”
Cann is a natural fit for the Canadian market due to its low dosage levels. Since Canadian regulations limit products to 10mg of THC “per package,” beverages at similar potency levels are the norm there. While this means that Cann is entering a market where the brand will face more direct competitors, Bullock welcomes the challenge.
“It’s an opportunity to go toe-to-toe with our global microdose cannabis beverage competitors and talk not just about why microdose cannabis beverages should exist, but instead talk about why we’re different,” he said. “We talk about concentrated juices that we never use, preservatives we never use—all natural flavor is so important to us. Those are the conversations we can have with consumers in Canada. Whereas before in other markets we’ve ventured, we have to say, ‘this is what a microdose beverage is.’ That’s exciting and an opportunity for us to really differentiate on taste and on the brand experience.”—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.