Sip Into The Future
With a 500% increase in attendees from their inaugural event last year, the Hemp Beverage Expo was another proof point that a beverage revolution is underway.
The idea of over 1,200 show attendees cramming into a four-star downtown Atlanta hotel to discuss the future of hemp-infused beverages would have seemed preposterous just a few short years ago. But after 2 1/2 days of keynotes, panel discussions, and expo floor samplings, one thing is clear - while there are challenges ahead, hemp-infused beverages are poised to be a key pillar of the broader non-alcoholic movement that is well underway. Here are just a few of the key topics swirling in the hot summer air of Atlanta.
How High Is Too High?
Somewhat unique to cannabis in the beverage space, dosage has risen to be one of the most hotly-debated decisions brands have to make about their product. The argument for low (or micro) dose options is there are new consumers entering the category every day who want something more sessionable, and comparable to alcohol. On the higher end, there are maturing brands who have built a loyal following of customers asking for something a little stronger. Micro-dosing options will remain popular for the scores of new consumers discovering the category for the first time, while many brand/hemp loyalists will continue pushing for higher milligrams from the brands they already trust. Threading the needle between these two ends without over-saturating SKU counts is critical.
WYNK’s Co-Founder and CEO Angus Rittenburg noted that they see price and dosage as inextricably linked, with lower-dose consumers looking for price points more comparable to alcohol, while more experienced loyalists focus on value per milligram. “The issue for our industry has been the prices are pretty high for most brands,” said Rittenburg. “So with the launch of 10mg, you’ll start to see some changes in the pricing of our 2.5mg and 5mg products. In the coming months, you’ll find 5mg very close in price to (alcohol) brands like White Claw and High Noon.”
The Elephant In The Corner
No state personifies the regulatory roulette wheel surrounding the industry quite like the Lone Star State, where a proposed intoxicating hemp ban went to the 1-yard line before a surprise veto by Texas Governor Greg Abbott that few saw coming. Will that prove to be a watershed moment, or false hope ahead of a gut punch from the Feds in the next Farm Bill? Many brands are forced to remain focused on interpreting a patchwork of state laws, while also paying attention to what's happening in DC. As the category chases CAGR growth that some peg at north of 30% in the near-to-medium term, the industry must remain engaged in the fight to keep the good times rolling.
Minnesota Nice
No state has been nicer to hemp beverages than Minnesota, which in many ways is the future of what this category could look like very soon across the country. It can also serve as a data source as it has reached a maturity level beyond most other states. As the industry has begun to see early signs of maturity there, SKU rationalization is setting in more rapidly than in other places. Can brands look to the state for clues on being successful, or have individual state regulations made these comparisons virtually meaningless? Chasing benchmarks in a still-nascent market will become even more important.
Interested to hear more about the state of the industry, and our recap of the Hemp Beverage Expo in Atlanta? Listen above to our podcast interview where we touch on these topics and more, featuring interviews with Angus Rittenburg of WYNK, Jared Emerling of Float House, and panel snippets from Todd Harris of Plift. Also available via Apple Podcasts, Spotify, or wherever you consume your content.