The trend of the past decades in food and beverages has been variety, and the shift has fundamentally changed the landscape for drinks of every kind. Millennials pushed food and beverage forward by focusing on things like artisanal, small and local, and that ultimately changed the landscape. People got deeply interested in cocktails, craft beer, natural wine and so on and so forth. And in the post-COVID era, as drinking tendencies shifted towards non-alcoholic and other "alternative" beverages, customer preference is as varied as ever. THC drinks are an exciting component of that, as they mean different things to different people, and thus bring in a wide demographic swath of folks, wider than we've been used to as a craft brewery.
In a fast-moving category like the THC beverage market, branding becomes the critical factor. If good product is "table stakes", then branding is more important than ever. The shelf is crowded no doubt, so we put a lot of thought into how we communicate to a potential customer. They've got to know right away what flavors and dosage to expect, and then you have maybe a few extra moments to instill trust. We do that with transparency of ingredients and providing a Certificate of Analysis for every batch we produce, and leaning into our expertise as an established brewery that's been around since 2016.
Innovation, Transparency and Long Game
Navigating the category presents a different set of challenges. The biggest challenge for us is that retailers prioritize products by dosage, first and foremost. The early adopters who drink THC beverages tend to have higher tolerances, so the shelf skews toward higher dosage. I think this can scare away prospective new drinkers, not to mention makes the category primarily about maximum effect as opposed to something more moderated. And we're a brewery that values and pushes moderation and balance. It's akin to the ABV race in craft beer a while back. Everyone wanted bang for their buck on alcohol, but as people got older and more familiar with craft beer, they started to opt for more sessionable products. I'd like to see the THC drink category head in that direction but it's going to take time.
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If good product is "table stakes", then branding is more important than ever.
Part of what will shift the market dynamics is innovation at the production level. Machinery and equipment is going to open things up, Including pasteurizers, nitro dosers, and other tools that can expand the horizon of what we're able to produce and the flavors we can achieve. Most small producers don't have a ton of specialized equipment, so I think we're seeing a narrower band of products than what's desired by the market.
For brands looking to build lasting value in this space, the starting point is clarity. Figure out your "unique value proposition" and cut out anything that doesn't serve that message. Stay focused on what sets you apart and hammer it in every sales call, distributor meeting, etc. Prioritize transparency and production standards so we can legitimize the category and keep it around.
