Summer is already scorching parts of the U.S., and many are looking for new ways to beat the heat this summer. For cannabis friendly states, a refreshing Cannabis-Infused Beverage is a fantastic go-to! The exciting Cannabis Beverage space is brimming with a huge number of brands and products that cater to a wide variety of consumer need states.
Although the cannabis beverage space is small (e.g., in Q1 2023, Beverages delivered 6% of total dollar Edible sales and < 1% of total legal sales), the brands in the space have delivered consistent sales and strong growth. There are five brands that have made an impact in the Beverage category, as the top 5 best-selling cannabis beverage brands across BDSA-tracked markets.
Q1 2023: Top 5 Best-Selling Cannabis Beverage Brands
|Brand||Rank||Total Sales||% Sales Change vs. PY|
|Keef Cola||1||$7.3 MM||+28%|
|Uncle Arnies||3||$3.4 MM||+443%|
|Tonic by PTS||5||$2.3 MM||+12%|
Source: BDSA Retail Sales Tracking, AZ, CA, CO, IL, MA, MD, MI, MO, NV, NJ, NY, OR, PA. Q1 2021-Q1 2023
BDSA data tracks Keef Cola as the number one best-selling beverage brand, across BDSA-tracked markets. The brand generated a whopping $7.3MM in sales in Q1 2023 across AZ, CA, CO, MO, NV, and OR.
Keef Cola’s strong distribution played a significant role in delivering such impressive sales performance. With BDSA Menu Analytics, we can identify the magnitude of Keef Cola market distribution, showing the brand is present in 66% of adult-use retailers in Colorado, 93% of adult-use retailers in the Missouri, and competitive sales performance, showing that Keef Cola was the best-selling beverage brand in CO and MO.
Cann launched in the California market in 2018. The brand has quickly become a familiar brand in the cannabis beverage space. Cann has since developed a flavorful product portfolio of branded signature “social tonics” and expanded into new markets (e.g., AZ, IL, MA, and NV).
With just five years in the Beverage market, Cann has conquered the number two title of best-selling cannabis beverage brand nationwide; delivering $3.9 million in cannabis Beverage sales in Q1 2023.
A rising powerhouse of the California cannabis beverage market, Uncle Arnie’s grew its dollar sales +443% in California alone (Q1 2023 vs. PY). With a recent expansion into the Oregon market, Uncle Arnie’s brought in $3.4 million in beverage sales across Oregon and California in Q1 2023.
BDSA Menu Analytics shows that Uncle Arnie’s was available in 44% of retailers in California in Q1 2023 and 10% of retailers in Oregon. The brand’s highly favorable market presence likely provided great conditions that supported the brand’s initiatives to drive sales and peak as the third best-selling cannabis beverage in Q1 2023.
Moving east, we find our fourth best-selling cannabis beverage nationwide. Levia, a subsidiary brand of multi-state operator (MSO) Ayr, has a dominant presence in Massachusetts and recently entered the Nevada market. In Q1 2023, Levia produced $2.4 million in sales across both markets.
You might be wondering, how is that possible with distribution in only 2 states. Well, BDSA Menu Analytics shows that Levia carbonated drinks were available in 63% of Massachusetts adult-use retailers in Q1 2023 and became the top selling beverage brand in Massachusetts with 43% of dollar beverage sales for the quarter.
Tonic by Progressive Treatment Solutions
Tonic, from Illinois-based Progressive Treatment Solutions (PTS) was the number five best-selling beverage brands across BDSA-tracked markets in Q1 2023. The brand actively sells in three markets (AZ, IL, and MI).
With strong distribution and good brand identity, the brand was Michigan’s second best-selling beverages (in dollar sales). In nearby Illinois, the brand delivered 55% of beverage dollar sales in Q1 2023. BDSA Menu Analytics show that PTS non-carbonated drinks were available in 86% of Illinois adult-use retailers.
While the beverage category is far from being the largest in the ingestible space, infused beverages still have carved out a significant niche in legal cannabis markets. In cultivating brand awareness and building strong distribution, brands can leverage beverage offerings to see strong, consistent sales.
Thirsty for more information on this exciting product category?
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- Cannabis Industry Shift: Pricing Compression & Brand Consolidation
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- Realizing the Opportunity of the Cannabis Beverages Market
- Cannabis Beverages Hold Significant Opportunity Across Saturated Mature Markets & Open Emerging Markets