Beverages are the subject of no shortage of hype in the cannabis industry, but they have still not managed to make a serious foothold with consumers.
When asked what it’s like to run a cannabis beverage company, CEO and co-founder of Fable Libations, Ben Kennedy said “challenging and invigorating at the same time. We’re driven by the future opportunity but distracted by the operational, economic, and human issues.”
He added that “when things go well you can’t get too high and you can’t get too down when things don’t.”
The beverages market holds only about a 2 percent share of the retail market. There is also no shortage of challenges that cannabis beverage companies face.
“A sea of sameness”
Ben Kennedy described the need for consumer education on cannabis drinks, retail cannabis companies that “don’t pull as hard as they could for cannabis beverages,” and a “sea of sameness' ' when it comes to the challenges of selling marijuana drinks.
The company’s website states that it was founded in order “to create a new type of non-alcoholic beverage.”
Fable focuses on natural ingredients in its beverages, which Kennedy said are meant to “taste like a fable” and not the “sea of sameness” that he says typifies cannabis seltzer waters.
The flavors may not be the typical ones people associate with carbonated drinks, much less cannabis beverages. These include “Into the Wood Sparkling” which blends flavors of stone fruit, pine, and rosemary, and “Hive Society” which features the flavors of jasmine, lemongrass, and basil. All of the drinks have a potency that ranges from 3.5mg to 5mg THC and 1.6mg CBD per serving.
The approach to fable is to make a product not for people looking for other ways to get high, rather, for a satisfying alternative to their usual libation. The intention is also not to get people jaw-droppingly stoned, so it’s not an option for people who are looking for beverages with 30mg, 60mg, or more of THC with each serving.
Kennedy said it is essential to find ways to differentiate your product and “manage your FOMO (fear of missing out)” so companies don’t chase new markets and opportunities before building a business with a strong foundation.
What is the potential for cannabis beverages?
If beverages can attain 5%-10% of the cannabis retail market it would be a major leap, but Kennedy has set his sights on a different.
“I think this has the potential to disrupt adult beverage consumption,” Kennedy said.
“I think people are looking for healthier alternatives to alcohol and we can provide the fun minus the hangover or minus the alcohol. That’s the opportunity.”
He added that “we can’t do that without remembering that the consumer sits at the core and what we do has to make their life better.”
Kennedy said that to make this vision a reality, the cannabis beverage industry has to educate customers about these libations and work to destigmatize them.
“We need to educate consumers that this isn’t going to couch lock them for two days,” Kennedy said.
“We Need to Make Better Products”
Ultimately, cannabis beverages will need to get a bigger share of the market if they are to live up to the hype.
“We need to make better products,” Kennedy said, adding that it's a matter of making more products that are unique and innovative.
“It’s building products with the characteristics of alcoholic drinks, minus the alcohol.”
One of these factors is what Kennedy calls “the bite of alcohol.”
He describes this as the kick, the sensation of drinking an alcoholic beverage that lets you know it's not just seltzer water. Fable creates this bite by using natural ingredients like ginger. He also said that the desire isn’t to create beverages that just get people extremely stoned. He sees it more as crafting drinks that will create a positive user experience that doesn’t have them thinking they were over-served.
He added that the consumer is trained at this point to see beverages as something consumed at happy hour whereas a joint you can hit in the morning or lunchtime or at night. There is a familiarization of a behavior that you’re not just going to eradicate.”
But another challenge beverages face is that customers are looking for flowers, gummies, and concentrates when they go to the dispensary. For beverages, a much more natural environment for sales is the liquor store or a bar, like in Minnesota where such sales are allowed.
The next few years could be key for the future of cannabis beverages. When asked where he sees the market in the near future, Kennedy said “I think in two years we will be continuing the educational process and there will be higher brand awareness.”
He added “sadly, I think the strongest will survive and nine out of ten won’t. It will be a steady, steady climb.”
