The sheer number of CBD products that have now hit the market is incredible. It seems as if everyone is jumping on the CBD wagon. However there remains one part of the market that has been underexploited – and that is soft drinks. The fortified soft drink mark is enormous. Take a look at White Claw – which is disrupting the market at the moment. It may be simply a seltzer with added alcohol – but it making a fortune, and making big manufacturers take notice. Hard seltzer sales are skyrocketing growth of market share has been around 200% year on year.
Imagine leveraging that consumer interest with an additive that boosts energy and reduces stress. Welcome to the world of CBD. The chemical is now harvested from crops that are increasingly found growing across the United States.
BD is a chemical that is found naturally in the cannabinoid family. That family includes hemp and marijuana. And now we have a situation where CBD is infused into a huge number of products. From gummy bears to power bars CBD has found a ready market.
Why should this be so? CBD has been found to reduce stress levels and chronic pain from inflammation. That has huge medical promise. Studies are ongoing – but cancer sufferers, those enduring the pain of arthritis and those who labor under the blanket of anxiety and depression all benefit from the yet to be medically proven effects of CBD. That is not to say that the chemical is not effective. The anecdotal evidence is clear – CBD enhanced consumer goods do provide benefits. So who is to say how it should not be harnessed?
The soft drink empire is vast. Sales of soft drinks in the United States total US$245436m. That’s 2019. It is a tremendously attractive market. A slice of that would make any independent producer rub their hands together in glee. Add to that the emerging and fast-growing CBD industry and you have a match made in heaven.
So what is stopping companies from cashing in? It is very simple – the economies of scale. Large beverage producers have already jumped into the water market. Alcohol infused Saltzer’s are already taking the market by storm. They have the bank balances to dominate the market – and marketing machines that allow them to dominate the market. They are already there. They can capture the public’s imagination using their existing infrastructure. Market dominance means they own those chilled fridges you see every day when you shop for the barbecue drinks.
Can they leverage that to include CBD infused beverages such as soft drinks? Of course, they can – wait and see. Watch for those CBD big brand offerings.
However, there is still time for focused smaller manufacturers to get in at the ground floor of the CBD soft drink elevator. They just have to box clever and identify niche markets – and then Claw their way to the top. In the age of social media, the world is their oyster.