August 2018

A s CBD transitions from dispensaries to health-food outlets, smoothie bars and convenience stores, the supplement is moving out of the dropper bottle and into full-sized beverages. Producers are placing a new emphasis on taste and marketing to win over con- sumers looking for healthful drinks, not a product that feels like taking medicine. “People are not used to reaching for a tincture and a dropper. But people are used to reaching for a beverage,” said Jonathan Eppers, founder of Vybes L.A., which makes CBD drinks sold in EXECUTIVE SUMMARY Water-soluble CBD is driving a boom in beverages infused with the cannabinoid. Operators say the beverages are opening doors to new retail outlets but that selling the products requires a new approach. Here are their tips for success in this new sector: • Taste is king. CBD beverages must compete against fruit juice and sugary sodas, so slapping the letters C-B-D on a bottle of bad- tasting liquid won’t be enough. • Packaging matters, too. Beverage consumers may be new to cannabis and turned off by stereotypical psychedelic marijuana imagery. • You’ll need product-liability insurance before getting on shelves in a mainstream retail store. • Start small. CBD isolate is still an expensive ingredient, one that may not have consistent supply. Large retailers will demand a constant stream of product, all at the same quality and price, so launching your beverage in smaller, niche smoothie and coffee shops may make more sense. about 250 grocery stores, coffee shops and hotels. Eppers started his beverage company in 2017, after traveling in Europe, where he discovered CBD oils to treat anxiety. “I just couldn’t believe this was sold in natural foods stores, because I’d never heard of it,” he said. “I couldn’t believe this thing sold over the counter could make me feel so great.” Eppers was amazed by the benefits but disgusted by the taste, which gave him a business idea. When he returned home to Cali- fornia, Eppers decided to try making a CBD-infused drink. Infusing cannabinoids into alcoholic and sugary beverages is nothing new. Now CBD also is popping up in everyday beverages from coffee, at left, to juice. Photos by Kristen Nichols Jonathan Eppers of Los Angeles was inspired to create a CBD-infused beverage after finding CBD oil for sale in Europe. Photo courtesy of Jonathan Eppers August 2018 • Marijuana Business Magazine • 71