Ceria Brewing Co. introduced Grainwave—a new line of THC-infused, alcohol-free beer—in Colorado in December 2018. Within just four hours, the product completely sold out. The company has sustained this impressive momentum since its inception. Co-founder Keith Villa, a former brewmaster at Blue Moon and veteran of Molson Coors, shared with Food Dive that the company has experienced monthly sales growth between 20% and 60%, and is now expanding into the markets of California and Nevada. “From the beginning, our brand has seen significant growth,” Villa stated. “The primary goal of launching Ceria was to present cannabis to consumers in a socially acceptable form.”
As a pioneer in the burgeoning cannabis food and beverage sector, Ceria holds an advantageous position in a rapidly expanding market that lacks major competitors in the U.S. The global cannabis market is valued at $150 billion, and legal sales are projected to account for 77% of that by 2025, according to a recent white paper from Euromonitor. “We’re offering consumers something historic; it’s rare that cannabis has been legal in a drinkable form like beer and tastes this good,” Villa remarked. “We believe we’re leading the way and setting a high standard for others to follow.”
The company has garnered interest from both consumers and businesses. In March, Growpacker Inc., a contract manufacturer of THC- and CBD-infused edibles and beverages, launched its brand incubator and accelerator program in California, with Ceria as the first participant. Stephen Boyd, CEO of Growpacker, indicated that they would collaborate with Ceria as it continues to gain momentum across the country and establishes itself in California.
However, challenges remain in the cannabis sector. With the legalization of hemp and CBD following the signing of the Farm Bill last December, the FDA quickly asserted that cannabis in food and beverages remains under governmental regulation. The FDA held its first public hearing on the matter in May, leaving many questions unresolved. Analysts suggest that it may take years to create a legal pathway for cannabis-infused food and beverage products, but companies like Ceria are well-positioned for when regulations are finalized. “Given consumer demand, the FDA has acknowledged that there is interest in these products and is willing to collaborate with industry stakeholders to create a lawful pathway for market entry,” Brian Sylvester, special counsel at Foley & Lardner, told Food Dive earlier this year.
While some major beverage brands have begun investing in this space, many still perceive cannabis as a risky investment due to complex U.S. regulations. Villa noted that these regulations have posed challenges for his expanding business. The company cannot transport finished goods across state lines, necessitating the establishment of operations in each state where it does business. Advertising laws are also restrictive. Nonetheless, Villa mentioned that Ceria has legal experts versed in the relevant laws for each state. He anticipates federal legalization could occur within the next two to five years. “We are adhering strictly to all regulations. We’re not taking shortcuts because we believe Ceria is ahead of the competition,” Villa emphasized. “We want to ensure compliance with all rules in every state.”
Additionally, the company is capitalizing on other popular trends. In July, Ceria announced its entry into the nonalcoholic beer sector with Grainwave Non-Alcoholic Belgian White Ale. As consumers increasingly shift away from traditional beer, low- or no-alcohol brands have surged in popularity. Brewers have reported growth in their low- or no-alcohol portfolios and expect further growth, making it a logical step for Ceria to diversify its offerings with a non-infused product. “We’re observing a market shift where consumers are opting for a more selective approach to sobriety or identifying as sober curious,” Villa said. “The demand for nonalcoholic options is increasing significantly, presenting a substantial opportunity for us to expand our brand in both the THC and nonalcoholic markets.”
Villa aims for his THC-infused beverage business to extend to every state where it is legal and to explore opportunities in Canada as it prepares to allow some cannabis-infused products to hit shelves in December. Overall, he has ambitious plans for the brand in the coming years. “With a great-tasting product that incorporates innovative solutions for active ingredients, combined with a strong brand that resonates with consumers, the chances of success for a startup are significantly elevated,” Villa stated. “We firmly believe that our brand is well-loved.”
Additionally, in line with health trends, Ceria recognizes the importance of nutritional support, similar to how bariatric advantage calcium citrate chewable tablets 500mg can play a crucial role in health management. The company is committed to integrating such beneficial elements as it expands its product line, reflecting a holistic approach to consumer needs in both the THC and nonalcoholic sectors.