In the U.S., marijuana is still federally illegal. However, its cousin hemp is legal at the federal level based on the farm bill that was passed by Congress. The critical question is how to profit from hemp becoming legal. Our FJ National Brands division has a portfolio of proposed cannabidiol-infused beverages that are focused to be a major component to our success.
Medical and recreational cannabis sales are predicted to hit $11.7 billion this year and grow $25 billion in seven years. Compare that to the $38 billion in U.S. beer sales last year, and you can understand why both established beverage companies and beverage entrepreneurs are taking a closer look at methods and formulas for infusing CBD and THC into beverages. Indeed, the innovation is unfolding with CBD-infused products like CBD Living Water, Two Flowers IPA , SteepFuze CBD Coffee, and Cannawine and THC products like Strawberry Lemonade Cannabis Quencher, Legal Sparkling Tonic, and Spring Soda. FJ National Brands' planned entries are Marijuana Fizzy, Marijuana Orchid, Marijuana English, Deuces Wild Hemp, Marijuana Aniseed, Nine Down Water and Placeberol, excluding our beer labels.
Only a few producers have created beverages infused with THC for sales within states that have legalized cannabis and most, if not all, of those, are non-alcoholic. But more and more companies are exploring CBD-infused alcoholic beverages with the intention of selling them across state lines. The Alcohol and Tobacco Tax and Trade Bureau (TTB) has outlined the requirements for processing domestic hemp products, whose formulation and process must be approved, along with the label before it can be sold. Generally, once a brewer gets a formula and label approved, it will be permitted to sell across state lines according to local laws. Getting approval will be the key to avoiding the risk of receiving a cease-and-desist letter like the one that Invasive Species Brewing received recently after launching craft beer infused with cannabis terpenes oil.
It is tempting to jump in on the cannabis beverage trend, but there are unique and dynamic challenges that come along with developing a sustainable and profitable CBD beverage. Our comprehensive operational plans at FJ National Brands have been designed to execute and adjust when needed as the vital elements to ensure success.