Los Angeles-based Cann, co-founded by Jake Bullock and Luke Anderson, is making waves with its cannabis-infused beverage, targeting the $100-billion beer industry in the US. Launched in 2019, Cann has become one of the top-selling cannabis beverage brands in the US, having sold over 10 million drinks across seven states and Canada, according to a report by CNBC-MakeIt.
Cann's flagship drink, described as a 'social tonic,' contains two milligrams of THC, providing a hangover-free alternative to traditional alcoholic beverages. The startup aims to tap into the growing trend of the 'sober curious’ movement, as younger generations reconsider the health implications of regular alcohol consumption.
THC is the substance that’s primarily responsible for the effects of marijuana on a person’s mental state.
Projected to sell over nine million cans next year, with prices starting at $24 per six-pack, Cann anticipates crossing the profitability threshold. The founders, in an interview with Make It, attributed their success to the changing drinking habits of younger demographics, with only 62% of adults under 35 reporting alcohol consumption, a 10% decline over the past two decades.
Cann's focus on social drinkers seeking a mild buzz without the drawbacks of alcohol aligns with cultural trends like Dry January and Sober October. The startup's approach diverges from catering to the traditional stoner market, aiming instead to offer a "bubbly, refreshing" alternative for those looking to reduce alcohol intake.
Despite limited sales channels through dispensaries, Cann has achieved remarkable success. The founders experimented with different marketing strategies, including a guerrilla-style approach that involved direct engagement with customers in cannabis dispensaries. This grassroots effort paid off, leading to celebrity endorsements and social media visibility.
Looking ahead, Cann plans to expand beyond the 24 states that have legalised recreational cannabis. Recent legislative changes in states like Minnesota, allowing the sale of low-dose THC-infused products in liquor stores, present opportunities for broader market penetration. With $32 million in funding from investors like Imaginary Ventures, Gwyneth Paltrow, Baron Davis, and Rosario Dawson, Cann is poised for further growth.
While taking on the $100-billion beer industry is no small feat, Cann's founders believe that evolving attitudes toward alcohol consumption could pave the way for cannabis beverages to become a significant player in the market. As cultural perceptions shift, Cann aims to position itself as a viable and socially-conscious alternative in the beverage industry.
