Curaleaf’s Strategic Moves in the Budding Cannabis Beverage Sector

By Bill McNarland On Jan 9, 2024

The TDR Three Takeaways:

1. Innovative Expansion: Curaleaf is expanding its beverages, notably with the launch of Stir, a THC beverage mix under its Zero Proof brand. This reflects the company’s innovation in creating consumer-friendly, alternative cannabis products.

2. Diverse Consumer Focus: Curaleaf targets both new and existing cannabis users with products like Stir and Squeeze. These offer controlled dosing and various flavors, indicating Curaleaf’s commitment to meeting diverse consumer preferences.

3. Market Growth Potential: The cannabis beverage market is poised for significant growth, projected to reach $3.9 billion by 2030. This growth highlights opportunities for companies like Curaleaf in the expanding global cannabis beverage sector.

Curaleaf Holdings (TSX: CURA, OTC: CURLF), a manufacturer of consumer cannabis products, has recently expanded its Zero Proof brand portfolio. The company has introduced Stir, a fast-acting THC beverage mix designed to transform sparkling water into a cannabis-infused drink. This product is now available at all Curaleaf locations in Illinois and is distributed wholesale to dispensaries across the state.

Stir by Zero Proof caters to both new and existing cannabis consumers, offering a sociable and approachable alternative to traditional alcoholic beverages. It features controllable dosing at 5mg of THC per sachet and uses nanotechnology to ensure rapid and effective absorption. At its launch, Stir is available in three low-calorie, gluten-free flavors: Peach Orange, Berry Cherry, and Mango Lime.

This introduction follows the September 2023 launch of Squeeze, another product in the Zero Proof brand. Squeeze is a beverage complement that provides a customizable cannabis experience, delivering 2.5mg of THC per dose.

The potential of the cannabis beverage market is significant. Research and Markets estimates that the global cannabis beverages market, valued at approximately $1 billion in 2022, is projected to reach $3.9 billion by 2030. This growth, representing a compound annual growth rate (CAGR) of 17.7% from 2022 to 2030, includes both non-alcoholic and alcoholic beverages infused with THC and CBD. The non-alcoholic segment is expected to see robust growth, with a projected CAGR of 18.2%, leading to a market size of $2.6 billion by the end of the analysis period. The alcoholic segment is anticipated to grow at a revised CAGR of 16.6% over the same period. The United States is a major market player, estimated at $752 million in 2022, with the Asia-Pacific region forecasted to reach around $258.5 million by 2030, growing at a CAGR of 14.4% from 2022. Europe and Canada are also expected to experience significant growth.At TDR, we are committed to closely monitoring Curaleaf and the evolving cannabis beverage market, offering regular updates and analyses. For further insights into Curaleaf’s 2024 strategies, watch this video featuring Curaleaf’s Boris Jordan.