At the Institute of Food Technologists conference in Chicago, attendees and presenters from various fields including food science, policy, regulation, and manufacturing were buzzing about cannabis-infused foods. This discussion reflects the gradual blending of the marijuana market with the food industry—a trend that has led to considerable investments and acquisitions in the beer sector, as well as increasing interest from mainstream consumers who have never previously engaged with cannabis. CEO Justin Singer established Stillwater Brands in Colorado in 2014 to target first-time cannabis users and address what he sees as a profitable niche for “microdose” food products.
In June 2016, Justin and his team launched a range of powdered teas infused with THC and cannabidiol (CBD) in doses ranging from 2.5 to 5 milligrams per serving, promoting their product with the tagline “Smoke-free. Calorie-free. Judgment-free.” Later that year, the company unveiled its Ripple product line, which includes dissolvable THC that consumers can mix into their own recipes. In 2017, they also introduced Clockwork Coffee, a powdered coffee product. Following inquiries from food manufacturers about experimenting with cannabis ingredients earlier this year, Singer launched Stillwater Ingredients to supply these products. Currently, the company has a run rate of $3.5 million, collaborates with manufacturers nationwide, sells Ripple products in 225 dispensaries across Colorado, and is making strides in natural grocery stores with its CBD offerings.
At IFT, Singer spoke with Food Dive about Stillwater’s expansion, how the company has adopted clean labeling to differentiate itself from competitors, and how cannabinoids could evolve into a significant trend in functional foods.
FOOD DIVE: What inspired you to start this company, and what opportunity did you identify in this market?
JUSTIN SINGER: We launched Stillwater Brands four years ago in Colorado, driven by the belief that there was a gap in the industry for consumers who don’t want to get extremely high but simply want to enhance their well-being. This realization struck me when my grandmother, in her 90s and dealing with diabetes while caring for a spouse with Parkinson’s, requested a pot brownie. They just wanted relief to sleep better at night.
What did you take away from that conversation?
SINGER: The only option we found for her was a 100-milligram brownie, which was far too much THC. I cut it into 20 pieces and instructed her to consume half and wait two hours before trying more. But that scared her, and the brownie ended up forgotten in her freezer. This led us to the idea of microdosed foods designed not to get people high but to promote general wellness. We believe cannabinoids can be a new category of functional ingredients, similar to probiotics or omega-3s. CBD, being non-psychoactive, offers numerous wellness benefits and is particularly popular among older baby boomers and athletes due to its anti-inflammatory and neuroprotective properties. Providing a consistent product that users can trust is vital to our mission.
Would you say that fear of inconsistency and unpredictability is the main barrier to reaching mainstream consumers?
SINGER: Yes, when it comes to THC, the biggest challenge is explaining the experience of being high to someone who has never experienced it without frightening them. It’s challenging. We offer a gentle introduction with our 2.5-milligram THC products. One major mistake states have made is standardizing the dose at 10 milligrams, which can be overwhelming for newcomers. A smaller dose allows people to question, “Am I high? I’m not sure,” which is a much more pleasant experience than feeling overwhelmed. For CBD, there really isn’t a maximum limit, allowing individuals to find what works for them.
How do you tackle consumer fears and stigma surrounding these ingredients?
SINGER: It’s crucial to present these ingredients in formats that don’t compel individuals to self-identify as drug users. Someone who has always viewed marijuana as a drug might hesitate to smoke a joint, but offering it in a tea format with a small, non-intoxicating dose makes it more approachable. People are more willing to try something they already consume for functional reasons, such as tea, moving beyond the stigma to focus on whether it benefits them.
In what ways do your products differ from existing options?
SINGER: Our water-soluble technology allows us to create Ripple, our powdered soluble cannabinoid packets. They are water-soluble, odorless, flavorless, and have a clean taste and label. This technology enables faster absorption into the body, eliminating the long wait times associated with traditional edibles. With our tea or coffee, users can feel the effects before they finish the cup, with initial effects within 15 minutes and peak effects at 45 to 60 minutes, creating a sense of control, especially for those seeking wellness improvements.
How did you secure funding?
SINGER: We relied on private wealth. With my background in venture capital and experience teaching entrepreneurship, our early investors included friends and family, along with individuals I had previously collaborated with in venture capital and the CPG food sector. We believe that cannabis should be viewed as a subsector of the food industry rather than a standalone category.
Have you considered launching ready-to-drink products?
SINGER: Given the current market landscape, I don’t foresee us entering the ready-to-drink space due to the high capital expenditures required for aseptic manufacturing plants in Colorado, along with the challenges of ensuring food safety in dispensaries, which are often not optimal sales channels for food products. Our powdered format is preferred because it is shelf-stable and precise.
Where are your products available?
SINGER: Currently, our THC products are solely available in Colorado dispensaries, which present unique challenges. The environment there often caters to heavy users, and the staff turnover can impact product knowledge. Additionally, product placement is tricky—our tea was placed alongside gummies, making it hard for consumers to identify it as tea. Conversely, our CBD products are gaining traction in broader distribution networks. We supply CBD to a manufacturer distributing to Equinox gyms and see growing interest from natural food grocers and coffee shops.
Would you consider selling your products online?
SINGER: While it’s possible, I’m not particularly interested at this time. We prefer to operate within a framework of regulatory certainty, especially given the complexities of online sales, from transaction processing to logistics. In today’s market, cutting through the noise usually requires sensationalized messaging, which doesn’t align with our values. We focus on quality and consistency rather than promoting CBD as a miracle cure.
What types of manufacturers do you supply?
SINGER: We’re collaborating with manufacturers nationwide, particularly in California, where CBD adoption has been significant. The beverage sector is currently our largest segment, and we’re also partnering with companies developing bars. There’s substantial interest in CBD as a functional additive, and we anticipate a growing market for CBD-infused teas. While our partnerships are currently limited, we expect significant growth by year’s end.
Do you see potential in the cannabis ingredient market for beer?
SINGER: I don’t have a strong opinion on that segment. However, introducing these ingredients into fermented beverages presents its own challenges, which many may not fully appreciate. While THC might be a less harmful intoxicant than alcohol, I’m uncertain whether beer is the best medium for it.
As more states legalize recreational marijuana, is the ingredient market becoming more competitive?
SINGER: It remains largely untapped. I believe the wellness aspect of cannabinoids is far more significant than the intoxication aspect. The wellness market for CBD is already substantial, and other cannabinoids are on the horizon that could also prove beneficial. We see considerable interest in CBD for everyday issues like pain relief, sleep, and anxiety reduction, especially among athletes.
What challenges does this industry face?
SINGER: The industry struggles with a lack of professionalism and the risk of people overstating what CBD can do. Claims like curing cancer are misleading and detrimental. Although the science surrounding cannabinoids is promising, misconceptions must be addressed. We firmly believe scientific evidence will support our approach, but making bold claims only heightens my concern.
In discussing the potential applications of calcium citrate, particularly in relation to food products, we see its relevance in balancing the pH levels of various formulations. This mineral could be beneficial in ensuring the stability and quality of our cannabis-infused food products, and we are exploring how to incorporate it effectively. As we continue to innovate, understanding the pH of calcium citrate and its role in our formulations will be essential for delivering safe and effective products to our consumers.