The cannabis beverage industry is a tough nut to crack. Once touted as the most promising of the Cannabis 2.0 products, consumer interest in the sector has waned somewhat with disappointing flavour profiles and an inability to attract non-cannabis users to the product.
That’s not to say that there isn’t a demand for easy-to-drink, tasty THC-infused beverages. It’s become increasingly clear that in order to succeed, companies need to have a proven product and a loyal customer base.
Enter Nevis Brands (CSE:NEVI) and its flagship product, Major. A 100 mg THC-infused beverage, Major is known for its unique characteristics, delivering the effects of cannabis in less than 20 minutes with appealing flavors. In 2022, Major was the most popular drink in the US, with sales totalling $25.4 million.
Nevis CEO John Kueber became familiar with Major through his work at SoRSE Technology, a CBD, hemp, and terpene emulsion supplier for food and beverages. The technology focused on rendering cannabis oil water-soluble and exposed Kueber to numerous cannabis beverage brands across North America and beyond. Major stood out for its strong sales, at one point reaching $1 million in Washington State alone.
“I had the chance to manage that business and shepherd it to some degree of success, but Major wasn't our focus at SoRSE,” Kueber told Proactive.
Leaving SoRSE gave Kueber the opportunity to acquire these brands and launch Nevis as a standalone company. “It's really given me the opportunity to focus completely on making this business a bigger standalone success in working toward making Major a nationwide presence.”
Nevis was born to capitalize on the opportunity to acquire and elevate brands to new heights. Since raising around $2 million through its initial public offering on the Canadian Securities Exchange in July 2023, Nevis acquired THC Essentials, the business unit of SoRSE that owned Major, and is focused on expanding Major's presence to multiple states using a low capital expenditure model.
According to Kueber, Major is a product that people love because of the value, the taste and quick onset. “That whole combination has just made it extremely popular.”
Major's core customer base consists of traditional cannabis users who appreciate the convenience and rapid effects of cannabis beverages. About two-thirds of Major's market comprises heavy or traditional cannabis users, Kueber said. The remaining third includes non-smokers, often health-conscious individuals seeking alternative ways to consume cannabis.
Nevis has a bold strategy of bringing Major to a new state every 90 days, driven by the product’s remarkable appeal among consumers. While there is always a bit of trepidation with launching a new product, Nevis’s experience bringing Major to other states seems to be replicated in the form of sales, Kueber said. “That's when we really believed that this could be a national product that goes far beyond the one state that we were in,” he said.
Consumers can find Nevis on shelves in Washington, Oregon, Ohio, Colorado, and Arizona. Expect to see more flavors down the road, Kueber said, and eventually more brands in the states in which Nevis is active.
In the broader context of the cannabis beverage industry, it's worth noting Tilray's recent acquisition of the remaining 57.5% equity ownership of Truss Beverage Co from Molson Coors Canada.
Tilray noted that regulatory shifts are expected to facilitate market entry for beverages, with the possibility of on-tap THC options in restaurants and bars promising substantial growth in the beverage sector.
“Over time, we expect the regulatory landscape for beverage distribution to evolve, with authorities re-evaluating their consumer policies,” the company said in a statement announcing the deal. “We expect this shift to fuel strong growth in the market for cannabinoid-based beverages, catering to diverse needs and occasions.”
The move highlighted the growing interest in THC-infused beverages. “Cannabis beverages have always been this small percentage of the market – almost an afterthought,” said Kueber. “All of a sudden you see this transformation where almost every dispensary has a fridge or beverage section. Most of the larger MSOs have a beverage strategy and the consumer is driving that.”
The global cannabis beverages market is projected to surge from around $915 million in 2021 to $19 billion in 2028, according to Fortune Business Insights.
So has Nevis cracked the code to success in the burgeoning beverages market?
“The industry has made great strides in becoming more mainstream and acceptable, but I think there's probably still a cocktail party somewhere where someone who doesn't want to be smoking a joint may want to enjoy cannabis in a social setting,” Kueber said. “I think people realize that not every cannabis beverage is created equal because some of them haven't tasted great or had the desired effects. The cannabis consumer knows that they need to be selective to be able to get the right beverage.”