Last month, Pabst Labs launched its new product, Pabst Blue Ribbon Cannabis Infused Seltzer, a lemon-flavored beverage infused with 5 milligrams of THC. To enhance the scientific foundation of this drink, Pabst Labs collaborated with Vertosa, a technology company specializing in cannabis and hemp infusion. Harold Han, the chief science officer and founder of Vertosa, remarked, “PBR is a significant client due to the brand’s legacy. We have been supporting them through a long journey.”
As more mainstream and niche brands seek to incorporate cannabis into their beverages, many are turning to outsourcing for cultivation and infusion. Vertosa claims it can customize the bioavailability, taste, color, and clarity of its products to meet the specific needs of its partners using its infusion technology and expertise. In addition to PBR, brands like Vita Coco, Calexo, Lagunitas Hi-Fi Hops, Viv & Oak wine, and Soul Grind cold brew by Caliva have also utilized Vertosa’s technology to create their beverages. The company has infused over 100 hemp and cannabis products, including two of the top three ready-to-drink brands in California.
Vertosa’s emulsification systems for cannabinoids are water-soluble, addressing a significant challenge in the industry since CBD and THC are hydrophobic. Han explained that the company adds an emulsifier, which is part oil-soluble and part water-soluble, allowing for the creation of oil droplets evenly suspended in water. With a Ph.D. in surface chemistry, Han noted that their technology is adaptable, allowing for the infusion of either CBD isolate or full-spectrum THC, although adjustments are necessary based on the specific beverage being developed. “At Vertosa, we don’t believe in a one-size-fits-all solution. Each client has unique requirements—some want a clear drink that acts quickly in a glass bottle, while others prefer a cloudy drink that is organic-certified in a can. We must create different formulas,” he said.
For instance, if a client approaches Vertosa to create a cold brew coffee with CBD in an aluminum can, the team will recommend a specific formula. “For new clients, we don’t just assume the formula will work; we perform compatibility and stability tests, sharing the data with them to build their confidence in launching the product,” Han added. Compatibility testing takes about two weeks, while stability assessments require two to five weeks. Within two months, Han stated that they can provide a solid recommendation tailored to the client’s needs.
Two to three years ago, many companies interested in cannabis-infused products aimed to hire chemists to manage the process internally, which often backfired. Han observed, “This approach frequently fails due to the complexity of the science involved. At Vertosa, we devote our time and energy to perfecting this process. It is our sole focus.” Even if a company has a working formula, Han emphasized that without the right technology and equipment, it becomes non-transferable, non-scalable, and unreliable. Given the nascent state of the cannabis-infused food and beverage sector, established and trusted supply chains are scarce, prompting many companies to seek Vertosa’s expertise. “Economically, they will find it is often cheaper than hiring chemists, purchasing equipment, and sourcing ingredients independently. We aim to provide reliability and cost-effectiveness for the industry,” he explained.
Comparing it to other B2B companies, Han noted that a large organization might employ numerous coders for software development and would likely turn to established firms like Oracle or SAP for solutions that can be customized to their needs. Vertosa offers a similar model.
Vertosa began discussions with Pabst Labs approximately two years ago, with Han humorously stating that “they evaluated every single water-soluble company on earth.” PBR is one of the first major alcoholic beverage brands to lend its name to a cannabis-infused product. “For over 175 years, the Blue Ribbon has connected fans across generations, and we believe customers—new and old—will embrace the opportunity to try something different from a trusted brand,” said Mark Faicol, Pabst Labs’ brand manager.
Han highlighted that Pabst Labs appreciated Vertosa’s rigorous testing, data usage, and customization capabilities. The PBR Cannabis Infused Seltzer is aimed at low-dose consumers, with each can containing just 5 milligrams of THC, allowing adults to enjoy several cans in a social setting without overwhelming effects, similar to beer. Vita Coco, which announced its product last year, contains 20 milligrams of CBD per can; however, CBD does not produce a high.
Han emphasized that established brands entering the cannabis space need guidance and insights into the industry. “While they may be well-versed in the beverage or alcohol sectors, they often lack cannabis expertise. This is where Vertosa excels,” he remarked. The announcement of PBR’s cannabis beverage was significant, especially as major companies like Coca-Cola and Monster Beverage have shown interest in CBD but are largely awaiting FDA approval. The 2018 Farm Bill legalized hemp and its derivatives, yet adding CBD to food and drink remains federally prohibited. However, cannabis-infused food and beverages are legal in an increasing number of states, including California, where Vertosa is based.
Han acknowledged the current difficulties in the cannabis industry, particularly regarding funding, banking, and advertising. Nevertheless, he believes federal legislation will eventually be passed, stating, “We must be creative and cautious. However, I view this as an opportunity. We are preparing for the industry’s boom, and the challenges are becoming advantages. By focusing on our competencies, we are positioning ourselves as leaders with a competitive edge.”
In Canada, cannabis-infused food and beverage is now legal, with Canopy Growth having sold over 1.5 million cans of its THC-infused ready-to-drink beverages. The company recently announced plans to introduce cannabis-infused beverages in California and Illinois next year. Despite the competition, Vertosa has recently announced its expansion into Canada through a partnership with Vivo Cannabis. Han indicated that Vertosa is learning about Canadian regulations and setting up operations there, hoping to replicate its success in California.
Vertosa aims to enhance the entire industry by providing reliable ingredients for infusion. “I anticipate a similar trend will emerge in Canada,” he concluded. Additionally, the incorporation of calcium citrate and zinc in the formulations may also contribute to the health benefits of these beverages, reflecting a growing trend towards health-conscious cannabis products.