Crop, Puration launching CBD-infused beverages
Last week, Crop Infrastructure Corp. (CSE:CROP) (OTC:CRXPF ) announced the launch of a new CBD-infused carbonated beverage line called Cannadrink. Additionally, the company plans to offer CBD infused coffees and teas.
Crop hopes to snag a piece of the carbonated soda market which was valued at $392.6 billion in 2016 and projected to reach $605.6 Billion by 2025 according to Grand View Research.
"The cannabis-infused beverages market has attracted the attention of world-class beverage companies as legalization spreads,” said CROP Infrastructure Director and CEO, Michael Yorke. “We see it as a tremendous opportunity for CROP Infrastructure's branding & IP portfolio and as an axillary opportunity for each of our cultivation tenants globally.”
Consumer tastes shift away from sugary drinks
Crop also hopes to cash in on consumers looking for healthier drinks, as soda and other sugary beverages are linked to obesity and poor health outcomes. “Functional beverages are a new class of products that offer beyond basic nutritional ingredients including vitamins, minerals, herbs, amino acids, and probiotics. We believe that cannabis's medically known benefits will enhance our own formulations, so we are bang on target with our CANNA DRINK line," said Yorke.
According to their statement, Crop supports The World Health Organization, whose mission is to "provide global leadership on public health," and who has encouraged countries to add sales taxes on sugary drinks to address the obesity problem. The taxes are designed to act as a deterrent for people to purchase items loaded with sugar.
In regions were sugar sales taxes have been put in place, some companies have seen a reduction in the number of products purchased that are loaded with sugar. For example, according to Grand View Research, Mexico saw a 6 percent drop in sales of sugary beverages once the country implemented its 10 percent sales tax on those items in 2014.
Puration releases CBD infused sports water
Crop is not alone. Other CBD companies are producing healthy beverages. Puration, Inc. (USOTC:PURA) also announced that they were releasing a CBD infused sports water. The announcement was made in a fitting atmosphere at Joe Weidner’s Olympia Fitness and Performance Expo in Las Vegas.
Puration which is already in the infused beverage game has seen its revenue grow by 600 percent since introducing its first cannabis-infused beverage according to a statement by the company.
Cannabis is slated to be more popular than soda by 2030
Even in areas where there is not sugar sales tax, soda is losing its favor with consumers. Bloomberg reports that cannabis sales could eclipse soda sales by 2030. Numbers in the North American market support that trend.
The North American soft drink market went from $78.3 billion in 2016 to $76.4 billion in 2017 while the cannabis market is predicted to reach $75 million by 2030 according to the same Bloomberg report.
Companies like Coca-Cola are taking note. Earlier this week it was rumored that the iconic soda brand was in talks with Canadian Licensed Producer Aurora Cannabis (TSX:ACB) to develop a non-psychoactive CBD-based drink.
Alcohol companies also looking at cannabis
Like companies that sell sugary beverages, alcohol is feeling the impact of the changing consumer trends. In states where cannabis legal, alcohol has seen a drop in sales of 15 percent.
Last month, cannabis company Canopy Growth Corporation (TSX:WEED)(NYSE:CGC) and spirits company Constellation Brands (NYSE:STZ) announced a blockbuster deal that saw Constellation invest $4 billion into the industry. Other well-known brands like Heineken (NASDAQ:HEINY) and Molson Coors Brewing Company (NYSE:TAP) (TSX:TPX) have also become players in the cannabis industry.
Each of these companies has made investments in areas like California and Canada where recreational cannabis use is either about to be legal or is already legal.