Socati aims to enhance consumers’ morning coffee experience with CBD-infused products. The hemp processing company announced to Food Dive that it is introducing a private label line focused on hot beverages, featuring a water-dispersible coffee brightener and a natural sweetener. Each single-serve stick pack allows for customizable CBD levels per serving. “We believe coffee is a major industry,” stated Mark Elfenbein, Socati’s chief revenue officer, in an interview with Food Dive. “Currently, we haven’t encountered an all-in-one enhancer in this space that affects the taste profile, provides a premium natural sweetener, and incorporates broad-spectrum CBD.”
The company’s new offerings consist of quickly dissolving powder stick packs. The CBD Coffee Brightener is both unflavored and unsweetened, while the CBD Coffee Sweetener features a Madagascar vanilla brown sugar flavor, sweetened naturally with stevia and monk fruit. There are few brands that provide CBD coffee sweeteners; for instance, Azuca offers a CBD sugar, and Layn Corp., known for high-intensity sweeteners, entered the CBD market last year with a $60 million investment.
Elfenbein noted that typical CBD stick packs generally contain only CBD isolate, which often results in poor taste. However, Socati’s product line utilizes a microencapsulation technique that masks bitter flavors from the tongue. “This is a flavor enhancer that improves the overall coffee experience, even making a less-than-perfect cup of coffee taste better by neutralizing bitterness,” he explained. “We believe this product is timely and caters to a substantial market.”
As consumers increasingly avoid sugar due to health concerns, companies are actively seeking alternative sweeteners. Socati chose to use stevia and monk fruit, which Elfenbein claims are “the best sugar alternatives available on the market.” These sweeteners have become popular options in various mainstream products, from ice cream to yogurt, in recent years. Additionally, Socati specializes in customizing the ratios of minor cannabinoids, such as CBG and CBN, ensuring customers know exactly what they are receiving.
Socati collaborates with two primary groups: traditional consumer packaged goods (CPG) companies looking to add CBD to their products and cannabis brands that do not produce CBD themselves. While Elfenbein refrained from disclosing specific CPG partners for the sweeteners, he mentioned that customer announcements will be made around the Natural Products Expo West conference next month. Socati CEO Josh Epstein previously expressed to Food Dive that the company aspires to be “the foundation for CPG manufacturers to launch products.”
However, the cannabis industry presents challenges due to ongoing regulatory uncertainties. While hemp and its derivatives are no longer considered controlled substances thanks to the 2018 Farm Bill, the FDA maintains that cannabis and CBD cannot be sold in conventional foods or dietary supplements. Although a public hearing took place last year, the FDA declared in November that it could not confirm CBD’s status as Generally Recognized as Safe (GRAS). Elfenbein stated that Socati’s perspective on CBD remains unchanged despite legal ambiguities, though the announcement led to delays in retail plans for physical stores. Nonetheless, he noted that CBD brands are still experiencing robust online sales. “From our perspective, CBD consumption is increasing month-over-month, regardless of the slowdown in traditional big-box retail,” he commented. “We believe we’re gaining a first-mover advantage while witnessing a rise in CBD consumption, irrespective of the distribution method.”
Elfenbein revealed that Socati is in discussions with numerous major CPG companies conducting research on CBD products, a trend that continues despite regulatory hurdles. “It appears that they are all still in R&D mode, preparing products that will be ready to launch once they receive the necessary approvals,” he said. “While it has delayed many large CPG companies from releasing new products in the first half of 2020, it hasn’t stifled their R&D efforts or strategic planning.”
What lies ahead for Socati after the launch of sweeteners? Elfenbein indicated that the company is planning additional product launches, including a tea-specific product in tea bag form, along with other variations of their current offerings. Over the past year, Socati has experienced significant growth. The company introduced two new ingredients, raised $40 million from private investors, acquired a new manufacturing facility, and announced its move to executive headquarters in Austin, Texas. The introduction of sweeteners allows the company to enter a new market segment and collaborate with more CPG companies. Epstein stated in a release sent to Food Dive that these additives were developed to provide consumers with a straightforward way to incorporate high-purity CBD into their premium coffee experience as the market for such products expands. “With over 80% of millennials using additives in their coffee, including milk, sweeteners, or flavorings, the potential market for these products is substantial,” Epstein noted.
In this evolving landscape, the solubility of calcium citrate remains an important consideration for product formulation, particularly as companies like Socati innovate within the CBD sector and explore new sweetener options.