drink: insights into the us & can cannabis beverage …

11

DRINK: INSIGHTS INTO THE US & CAN

CANNABIS BEVERAGE MARKET

December 8, 2020

All Rights Reserved | ©2020 BDSA

KELLY NIELSEN| VP, INSIGHTS & [email protected]

2©2020 BDSA | CONFIDENTIAL

2

CLIENTS

RELY ON

BDSA TO…

• Revenue

• Margin

• Market Share

• Expansion Rate

• Profitability

• And more!

DRIVE KPIs

• Price & Product

• Innovation

• Category Growth

• Market Expansion

• Consumer Targeting

• Competitive Analysis

• Market/Industry Education

ELIMINATE

UNCERTAINTY

• Go-to Source for Analytics’

Resources

• In-depth Research

• Business Planning

BE A TRUSTED

PARTNER

3All Rights Reserved | ©2020 BDSA©2020 BDSA | CONFIDENTIAL

3

RETAIL SALES TRACKINGKnow exactly what is selling where, when, and at what price point

CONSUMER INSIGHTSUnderstand consumer (and non-consumer) segments, sizing, behavior,

consumption patterns, purchase habits, and more

MARKET FORECASTSGain a comprehensive understanding of market size and future opportunity

BDSA PROVIDES A COMPLETE VIEW OF THE GLOBAL CANNABINOID MARKET

OF TODAY AND TOMORROW

4

QUICK MARKET UPDATE

5All Rights Reserved | ©2020 BDSA

Source: BDSA

ADULT-USE LEGALIZATION DRIVES LEGAL DISPENSARY SALESMedical markets are not insignificant; will represent ~30% of legal spending in US by 2025

2025 Top Markets

1. California2. Canada3. Colorado4. Florida5. Illinois

$7.00 $10.20

$9.20

$24.30

$2.10 $5.90

2020 2025 2020 2025

Medical Adult-use

$16.2B

$34.5B

$6.1B

$2.5B

United States ($USD) Canada ($USD)

Total Legal Dispensary Spend 2020 vs. 2025


Source: BDSA

0%

20%

40%

60%

80%

100%

120%

140%

160%

2021 2022 2023 2024 2025

US Legal Cannabis Spending Growth in

Regulated Dispensary Channel (% vs. 2020)

Total Market Edibles Category

IN THE US: EDIBLES ARE ~15% OF DOLLAR SALES AND GROWING

IN CAN: EDIBLES ARE ~6% OF DOLLAR SALES AND GROWING

0%

50%

100%

150%

200%

250%

2021 2022 2023 2024 2025

CAN Legal Cannabis Spending Growth in

Regulated Dispensary Channel (% vs. 2020)

Total Market Edibles Category


Source: BDSA

BEVERAGES MAKE UP 5% OF SALES IN US, GROWING IN CAN

5%OF EDIBLES $ IN LEGAL

DISPENSARY CHANNELS

Canada

Beverages

3%Jan 2020

23%Oct 2020

United States

Beverages

OF EDIBLES $ IN LEGAL DISPENSARY CHANNELS


Source: BDSA Alberta + British Columbia

INCREASE IN PENETRATION DRIVEN BY RAPID GROWTH

Jun Jul Aug Sep Oct

Canadian Growth Through Dispensaries Jun-Oct 2020

Beverages Total Edibles

+13%+4%

+8%+5%

+34%+21% Flat+26%

15% 17% 20% 24% 23%Beverage % of total

edibles products


Source: BDSANote: All figures in billions of dollars.

WITH MAINSTREAM CHANNELS OPENING, BDSA FORECASTS A $50B US

TOTAL CANNABINOID (HEMP+MARIJUANA) MARKET IN 2025

$2.2

$13.2

$0.5

$2.4

$0

$10

$20

$30

$40

$50

$60

2019 2025

Dispensary General Retail Rx

$10.5

$1.6

$29.7

Total - $14B

Total - $50B

$4.8

• THC cannabinoids

in licensed

dispensaries

• Non-THC

cannabinoids in

general retail

• Rx cannabinoids

• Other

cannabinoids in

licensed

dispensaries

$4.8

$1.6


Source: BDSA

BEVERAGES

BEVERAGES ANTICIPATED TO DRIVE CBD SALES IN MAINSTREAM CHANNELS

IN UNITED STATES

2021

6%OF CBD $ IN

MAINSTREAM RETAIL

2025

10%OF CBD $ IN

MAINSTREAM RETAIL

11

BEVERAGES: DID YOU KNOW?!?!?


71%Consume Edibles

OF CANNABIS CONSUMERS…

33%Prefer Edibles

Source: BDSA Consumer Research Q1 2020: U.S. adults 21+ in Fully Legal US States

57%Consume Edibles

30%Prefer Edibles

United States Canada


19%Consume Beverages

OF CANNABIS CONSUMERS…

8%Prefer Beverages

Source: BDSA Consumer Research Q1 2020: U.S. adults 21+ in Fully Legal US States

10%Consume Beverages

3%Prefer Beverages

United States Canada


Source: BDSA Sales Tracking; Growth reflected across AZ, CA, CO, OR, NV, MD, MA

US BEVERAGES DOMINATED BY DRINKS

+21%2020 US Total Beverage

$ Growth vs. 2019

1%

71%

1%

11%

12%4%

US Beverage Sales (Dollars)

Coffee Products Drinks Other Beverages

Powdered Mix Shots Tea

DRINKSCarbonated Drinks 37%

Non-Carbonated Drinks: 34%

15All Rights Reserved | ©2020 BDSA15

EVOLVING US CANNABIS BEVERAGES

Source: BDSA Brand-Level Retail Sales Tracking, Dollar Sales June-August 2020: AZ, CA, CO, OR, NV, MD, MA

TOP BRANDS Aug-

Oct*:1. Keef

2. Dixie

3. Cann

4. Ripple (Stillwater)

5. Absolute Xtracts (Hi-Fi)


RAPIDLY EVOLVING CANNABIS BEVERAGES—CANADA

Truss: Molson Coors + HEXO Canopy Growth Fluent: ABI + Tilray

BC TOP PRODUCTS Oct 2020:1. Deep Space Beverage (Canopy)

2. Houseplant Sparling Water (Canopy)

3. Everie CBD Sparkling Water (Tilray)

4. Tweed Bakerstreet & Ginger Canopy)

5. Truss Beverage Co- House of Terpenes

ALBERTA TOP PRODUCTS Oct 2020:1. Deep Space Beverage

2. Truss Beverage Co- Mollo Malt Beverage

3. Truss Beverage Co- Little Victory

4. The Green Organic Dutchman - Infuser - Powder Mix

5. Truss Beverage Co - Little Victory - Sparkling Beverage

Source: BDSA Brand-Level Retail Sales Tracking, Dollar Sales June-August 2020: AZ, CA, CO, OR, NV, MD, MA


AND US GENERAL MARKET HEMP/CBD BEVERAGES ARE JUST GETTING

STARTED


Source: BDSA Consumer Insights

7% 9%

15%

19%

17%

21%

0%

10%

20%

30%

40%

50%

60%

Total Consumers Prefer Edibles

Consumer Dosage Level Preference

<2.5mg 2.5-5 5-10 mg

39%

49%

26%

EDIBLES CONSUMERS PREFER LOWER DOSE DRIVING RELEVANCE WITH

BEVERAGES

+16%<10mg Beverages in

California

$ Growth vs. 2019


Source: BDSA

EXPECT HIGHER GROWTH DURING THE HOLIDAYS

23%

45%43%

36%

25%

TOTAL Beverages Topicals Edibles Vape

% $ Sales Increase for Dec 18-24 vs. Rest of December


THE LONG-TERM IMPACT TO ALCOHOL INDUSTRY IS INEVITABLE

Q1 2020 Alcohol & Cannabis Consumption Past 6 Months in Legal Adult-Use States

68% Of Cannabis consumers also consumed Alcohol

Cannabis Consumers

43% Of Alcohol consumers also consumed Cannabis

Alcohol Consumers

Source: BDSA Consumer Insights Q1 2020c


CANNABIS AND ALCOHOL ARE GOOD FOR. . .

Different times of day or days of the week

50%

Same times of day or days of the week

14%

Both

36%

Source: BDSA


NOW FOR OUR SPECIAL GUESTS…

Within Top 5 Beverage SKUs in

California in 2020, 3 of 5 top

SKUs in October

Within Top 5 Beverage Brands in

California for past 2 years (and

one of first beers)

Among fastest growing CAN

Beverage products; 3 of 5 top

Alberta SKUs in October


NOW FOR OUR SPECIAL GUESTS…

Luke AndersonCann

Co-founder

Jeremy Marshall

LagunitasBrewmaster

Lori HatcherTruss Beverages

Head of Marketing

25

IT’S A NEW GAME

WHAT DOES THAT MEAN FOR YOUR BUSINESS?

[email protected]

drink: insights into the us & can cannabis beverage …

Documents