- Prioritize High-Quality Ingredients: Consumers prefer premium, clean-label options in cannabis beverages, aligning with wellness trends.
- Focus on Distribution Channels: Targeting grocery stores and specialty retailers diversifies market reach.
- Brand Positioning Matters: Align your brand with lifestyle values that resonate with your audience.
As the cannabis beverage market surges, staying competitive is more than just joining the trend. With an estimated growth of 17.8% annually, it’s clear that cannabis beverages are here to stay, but what does it take to craft a product that resonates and builds loyalty? This article dives into the essentials of creating a standout cannabis beverage brand, Cool Out.
Cool Out started as a small brewing company in St. John, founded by college friends Kevin Chipman and Chirag Vyas, who eventually pivoted from traditional brewing to cannabis-infused beverages. “We always had a passion for beverages, and moving into the cannabis space was a natural evolution,” shares Vyas. They observed a shift in consumer preferences towards lighter, health-focused alternatives, which encouraged them to explore Delta-8 beverages as a new, less intoxicating alternative to alcohol.
With an established background in craft brewing and hospitality, the co-founders understood consumer behavior firsthand across restaurant, retail, and bar settings. This experience uniquely positioned them to approach the cannabis beverage market with a blend of expertise and intuition, ultimately shaping Cool Out’s brand as a high-quality, approachable, and refreshing option for cannabis-curious consumers.
Whether you’re a retailer or brand looking to enter this market, you’ll find valuable guidance on meeting consumer expectations, scaling up, and ensuring product consistency and quality.
Why Cannabis Beverages Are Trending
The cannabis beverage market has experienced impressive growth in recent years, driven by changing consumer attitudes and increased awareness of alternative wellness products.
According to a CAGR report, the cannabis beverage market is expected to grow at an annual rate of 17.8%, reaching $2.8 billion by 2025. This trend aligns with a wider consumer preference for low- and no-alcohol options—a movement already prominent in the craft beverage industry. Chipman notes, “Our transition to Delta-8 seltzers felt like a natural step, as we were noticing more people wanting the effects of cannabis without the downsides of alcohol.”
Some of the most significant factors contributing to this growth include:
- Health-Conscious Lifestyles: Many consumers are seeking non-alcoholic alternatives that promote relaxation without impairing functionality. For those looking to cut back on alcohol, Delta-8 beverages provide a lower-stakes experience, with effects reported as milder and less anxiety-inducing than Delta-9 THC.
- Social Acceptance of Cannabis: As legalization expands and the stigma surrounding cannabis dissipates, cannabis beverages are becoming a socially acceptable option at gatherings, replacing or complementing traditional drinks. According to a Gallup poll, around 68% of Americans support legal cannabis—a cultural shift opening the door for new cannabis-infused products.
- Precision in Dosing: The appeal of cannabis beverages also lies in the ability to control dosage. With pre-measured servings, consumers can enjoy a predictable experience, fostering repeat purchases and increased trust in the brand.
How to Craft a Unique Brand in the Cannabis Beverage Space
Cool Out’s founders recognized early on the need to differentiate their product from both cannabis edibles and traditional beverages. Drawing from their experience in craft brewing, Chipman and Vyas aimed to create a product that provided consistent effects and a unique taste profile. “Our backgrounds in brewing helped us prioritize taste as much as effects,” says Vyas. “We want our beverages to be enjoyable even without the Delta-8.”
The result is a low-calorie, subtly flavored seltzer that appeals to consumers looking for a balanced experience. Cool Out’s Delta-8 seltzers come in flavors like citrus and berry, positioning them as light and refreshing alternatives to heavier cannabis edibles. These flavors also complement the brand’s laid-back, health-conscious identity, attracting a demographic that values wellness but may still hesitate to dive into stronger cannabis products.
Another distinguishing factor for Cool Out is their dedication to consistency. Many cannabis products, especially edibles, struggle with dosage accuracy, but Cool Out’s process ensures each can delivers a consistent 10mg of Delta-8. “Getting the dosage right is essential. People want to feel safe trying something new,” Vyas notes.
Find a Trusted Source for Retailers and Consumers
Partnering with Kush.com has allowed Cool Out to leverage distribution expertise and expand into broader markets with the assurance of quality control. As Chipman and Vyas emphasize, their commitment to quality aligns closely with the Kush.com certification standards, ensuring each product meets rigorous requirements before it reaches consumers. “We’re proud to be part of Kush.com’s certified brands. It means consumers can trust what’s in every can,” says Chipman.
By joining the Kush.com platform, Cool Out’s products gain visibility among retailers who prioritize quality, safety, and compliance, a significant advantage in an emerging market where regulations and consumer expectations are continually evolving.
What Retailers Need to Know About Positioning in Retail Spaces
For retailers, selecting the right cannabis beverage brand means understanding the product’s target audience and knowing where it best fits on the shelf. Cool Out’s co-founders recommend positioning their Delta-8 seltzers alongside health-conscious, low-calorie beverages and in spaces where customers seek alternatives to alcohol.
Cool Out’s founders emphasize the importance of educating both retailers and consumers on the benefits and effects of Delta-8. “Delta-8 is still new to many, so we put a strong focus on informing our customers,” explains Chipman. For retailers, offering informational materials can enhance the consumer experience and promote trust in new products.
What’s Next?
As the cannabis beverage market grows, brands like Cool Out are setting the standard with carefully crafted, consumer-conscious products. Chipman and Vyas have built a brand that resonates with a health-conscious, cannabis-curious audience with their roots in craft brewing and a deep commitment to quality.
This is part one of a three-part Crafting Success in Cannabis Beverages series. Check out Part 2, where we dive into scaling production while maintaining compliance and quality. Watch the full High Profit episode featuring Chipman and Vyas of Cool Out for even more insights.
Tyana Daley
