US-based Cann has launched its first line of zero-THC beverages, expanding its portfolio ahead of possible new rules on THC drinks sales later this year.
The new drinks, called 0mg, are being positioned as functional beverages, containing a mixture of ingredients such as magnesium, L-theanine, electrolytes like potassium citrate and passion flower extract.
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The 0mg drinks are available in lemon lavender and blood orange cardamom flavours, which the group already sells in its THC drinks range.
Cann’s portfolio includes drinks that contain THC ranging from 2mg to 10mg. Some of the company’s drinks also have CBD.
“Debuting a zero-THC beverage, and taking a successful play out of alcohol’s book, gives us the opportunity to reach more consumers where they’re already shopping, expands our retail distribution, and grows our awareness to new heights”, Jake Bullock, the CEO and co-founder of Cann said in a statement.
“This extension allows us to create something that remains true to the way people want to drink now, with or without THC.”
Speaking to Just Drinks ahead of the launch, Bullock explained that the business was following a similar approach to the alcohol industry’s development of zero-alcohol line extensions.
“If you were thinking about Heineken 0.0, Peroni 0.0 or like Athletic [Brewing] or Bero, we’re sort of doing a similar thing, where we take out… the part of a product that is intoxicating,” he said. “We take that out, just like alcohol 0.0 products take out the alcohol part, but we leave in all the other good stuff.”
Cann’s new 0mg line is available to US consumers directly from the brand’s website, with retail listings being revealed in August. The drinks are priced at $33 for an eight-pack of 355ml cans. A 12-pack costs $49 while a pack of 16 cans is priced at $65.
Last year, a funding bill was passed by the US Congress and signed by Trump narrowing the legal definition of hemp.
Under the planned law, “hemp-derived cannabinoid products” with THC content exceeding 0.3% would no longer be permitted for sale, nor would any “final” hemp-based cannabinoid goods with more than 0.4mg of THC per container.
It would also prohibit “any other cannabinoids that have similar effects (or are marketed to have similar effects)”.
The restrictions on sales of hemp-based products, including THC drinks are due to take effect in November.
Cann’s latest NPD move marks another example of US companies expanding their drinks portfolio in advance of a possible ban of THC beverages coming into force.
In April, THC brand Nowadays revealed a line of low-THC-content beverages in response to the US government’s plans to tighten rules on the sale of hemp-derived drinks.
The California-based group said at the time it was “safeguarding itself” with the new Nowadays Extra Lite, which will contain 0.4mg of THC and 5mg of CBD.
Last month, the THC industry saw some positive developments, after the White House made a call to Congress to revise the federal hemp ban or delay the deadline on tightening sales of THC products.
As part of a $87.6bn funding request on behalf of President Trump, the Office of Management and Budget (OMB) called for a revision of “the federal regulation of hemp to ensure the fair treatment of hemp products”.
Congress has until 30 September to pass appropriations bills to fund the federal government, though there is a possibility that this deadline could be extended.
Bullock said he sees there being “another opportunity to include some sort of language to solve this problem, even if it’s just temporarily in advance of November”, ahead of ban coming into play and the mid-term elections.
Regardless of whether Congress passes some sort of adjustment to the federal hemp regulation, or a delay to the November deadline, Cann will still make and sell its new non-THC drinks.
“If things change, we’ll have to make adjustments, but our plan is not to, if we get a reprieve, or we get some sort of rules that allow some milligrams in hemp drinks to stop selling these products,” Bullock said.
He added that there are several states where the brand has been unable to sell its THC drinks. Washington and Oregon, for instance, “have really unique laws that make it difficult to sell hemp drinks”, Bullock said.
“We’re sticking with this, regardless, because of what opportunity [it] has, and the widening of the consumer, both occasions and actual consumers, where they physically reside, that this product unlocks for us.”
Cann works with two co-packers to produce its products. One based in New York state and the other in Atlanta in Georgia.
