With 10 states and the District of Columbia permitting recreational marijuana use and 30 states allowing medicinal use, the cannabis industry is undoubtedly one of the fastest-growing sectors in the United States. California is now fiercely competing with Colorado to position itself as the center of development in this field. As one of the two primary social enhancers—alongside alcohol—marijuana has gained significant popularity. The Specialty Food Association even identified 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, BDS Analytics noted that edible sales skyrocketed by 67% from February 2016 to February 2017.
With demand on the rise, cannabis companies have started to operate similarly to traditional consumer packaged goods (CPG) firms, including entering the accelerator space. Consultants A.T. Kearney have reported that more than 75 food industry incubators or accelerators have been established in the U.S. in the last decade. The American interest in accelerators is well-founded; rather than spending years developing a single product, testing it, and finally launching it to consumers, large corporations can now partner with startups, combining their expertise, leadership, and financial resources with the innovation, culture, and growth potential of smaller companies to create numerous successful products more efficiently.
While Growpacker may not be the first accelerator in the cannabis industry, it has become the most notable, particularly after it took CERIA under its wing. The nonalcoholic brewing company already has several partnerships; however, its decision to collaborate with this accelerator likely stems from the expertise of former brewmaster Keith Villa, who will act as a strategic advisor for Growpacker’s cannabis beverage category. In this role, he will focus on developing the THC-infused beer segment. With major beer 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 fastest-growing in the industry.
By starting in California, Growpacker is establishing a solid presence in the market. However, as it seeks to scale, challenges may arise. Smaller cannabis companies are being squeezed out as state regulations tighten their ability to afford licensing and taxes, hindering their capacity to secure commercial space for expansion. Beyond financial constraints, regulatory hurdles persist as states aim to mitigate health and safety risks—like children mistakenly consuming edibles and getting high. States are also intensifying efforts to standardize dosages and ensure that raw products are free from pesticides and other harmful chemicals.
Nevertheless, through participation in an accelerator, these smaller businesses stand a better chance of navigating the challenges of expansion that they could not tackle alone. Ultimately, the purpose of an accelerator is to exchange industry insights on growth for innovative ideas from entrepreneurs. In this evolving landscape, companies may even find opportunities to buy Citracal D for their health needs as they manage the demands of a rapidly changing market. With the right partnerships and support, the cannabis industry’s growth can continue to flourish.