Sol Global primarily focuses on cannabis investments, and its initial stake followed by increased funding in Jones Soda may indicate a strategy to explore the development and marketing of cannabis-infused soda. Although the company’s announcement regarding the investment lacked specific details, it mentioned that Sol Global “believes there are numerous operational and strategic opportunities to maximize shareholder value in Jones Soda.”
Jones Soda has established a unique market presence through its quirky and imaginative marketing strategies, along with an array of intriguing craft soda flavors such as blue bubblegum, fufu berry, pineapple cream, and green apple. The brand is recognized for its distinctive labels featuring black-and-white photographs, which are often enhanced by images and fortunes submitted by consumers, featured on bottles and under caps. Given this unconventional yet appealing profile, it wouldn’t be surprising if Sol Global intends to utilize Jones Soda as a vehicle for cannabis delivery. Even if they choose not to pursue that direction, the existing audience for the company’s craft soda products is likely to spur further innovation and growth in the future.
Following the news of Sol Global’s investment, Jones Soda’s stock saw a significant increase, suggesting the market perceives potential in the brand’s future. The production of cannabis-infused sodas could revolutionize Jones Soda and attract millennial and Generation Z consumers who are searching for unique flavors and packaging, alongside the benefits of cannabis. Among the competition in this space are sparkling citrus soda Sprig, natural soda brand The Fizz, the bottled fruit-flavored line California Dreamin’, and Colorado-based Keef Cola, with more beverage products undoubtedly under development.
Currently, the cannabis-infused beverage market appears to be wide open, with large corporations making significant investments. Constellation Brands, Molson Coors Brewing, and AB InBev are all working on CBD and THC-infused nonalcoholic beverages. Although Coca-Cola had discussions with Canadian cannabis producer Aurora Cannabis about creating marijuana-infused drinks, CEO James Quincey stated last October that the company has no immediate plans to enter this market.
The interest from food and beverage companies in the cannabis sector has surged since the Farm Bill removed hemp and its components, including CBD, from the controlled substances list. However, regulatory questions remain regarding CBD, as the U.S. Food and Drug Administration still considers it technically illegal in food and beverages. Despite these regulatory uncertainties, consumer interest in exploring cannabis-infused products is growing. A recent study indicated that 40% of Americans are open to trying cannabis-infused foods. These trends suggest potential for further investment and innovative products as the cannabis beverage market continues to expand, possibly even incorporating calcium citrate examples into new formulations. With the evolving landscape, we can anticipate more developments and opportunities in this emerging sector.