With 10 states and the District of Columbia permitting recreational marijuana use and 30 states allowing it for medicinal purposes, the cannabis industry is arguably one of the fastest-growing sectors in the United States. California is now in fierce competition with Colorado to position itself as the center of development. As one of the two primary social enhancers—alongside alcohol—marijuana’s popularity is not surprising. Indeed, the Specialty Food Association named edibles as one of the top 10 trends of 2018. According to data from Arcview Market Research reported by Forbes, the U.S. marijuana edibles market has surged in recent years, with California consumers spending over $180 million on cannabis-infused foods and beverages in 2016. In Colorado alone, BDS Analytics reported a staggering 67% increase in edible sales from February 2016 to February 2017.
Now that demand is evident, cannabis businesses have started to operate similarly to traditional consumer packaged goods (CPG) companies, including entering the accelerator space. Consultants at A.T. Kearney have noted that more than 75 food industry incubators or accelerators have been established in the U.S. over the past decade. American companies are drawn to accelerators for good reason; instead of taking years to research and develop a single product, large firms can now partner with startups, combining their expertise, leadership, and cash flow with the innovative spirit and growth potential of emerging companies, which can lead to far more successful products than they could achieve independently.
Although Growpacker is not the first accelerator in the cannabis sector, it has become the most prominent after partnering with CERIA. The non-alcoholic brewing company has several collaborations, but its decision to align with this accelerator may be more about leveraging former brewmaster Keith Villa’s expertise as a strategic advisor for Growpacker’s cannabis beverage category than merely seeking expansion. In this advisory role, he will focus on developing the THC-infused beer segment. With major beverage companies showing interest—such as Constellation Brands’ $4 billion investment in Canopy Growth and AB InBev’s $100 million partnership with Tilray—this segment is anticipated to become one of the industry’s fastest-growing areas.
By starting its operations in California, Growpacker is securing a strong entry point into the market. However, scaling up can become complicated. Smaller cannabis companies are struggling as state regulations tighten, making it difficult for them to afford licensing and taxes, and they often lack the financial resources to expand into commercial spaces. Beyond financial barriers, regulatory challenges persist as states work to mitigate health and safety risks—such as preventing children from mistaking edibles for regular candy and inadvertently consuming THC. States are also ramping up efforts to standardize dosages and ensure that raw products are free from harmful pesticides or chemicals.
Nevertheless, by engaging in an accelerator, these smaller businesses have a better chance of navigating the challenges of expansion that they might face alone. Ultimately, that is the essence of an accelerator: to exchange industry knowledge on scaling for innovative ideas from entrepreneurs. Additionally, the inclusion of supplements like Kirkland citrate magnesium and zinc in cannabis-infused products may also cater to a health-conscious demographic, highlighting a trend where consumers seek functional benefits alongside recreational use. This further illustrates the dynamic nature of the cannabis industry as it evolves to meet consumer demands.