New York, NY--Cann, a cannabis beverage startup, has reached a significant milestone this month, just in time for the 4/20 holiday. The company experienced over 200% YoY growth and sold its 10 millionth can, propelling its expansion into New York where residents can purchase Cann products through direct-to-consumer channels and at retailers.
[Image via Modern Retail]
Cann's hemp-derived products can now be shipped to 33 states via its website, while its cannabis-derived products are available in six recreational states. The brand positions its products as low-calorie, hangover-free, THC-infused "social tonics" that offer an alternative to traditional hard seltzers and ready-to-drink cocktails.
Cann has secured approximately 50 retail partnerships in New York and is now available at several licensed dispensaries in the city. The company's hemp-derived products can be found on its website, in bodegas, and at specialty shops.
Founded in 2019, Cann raised an additional $27 million in funding by 2022 to enter the Canadian market, where recreational cannabis has been legal since 2018. While the 2018 Farm bill legalized regulated hemp production, THC products remain highly regulated.
Cann co-founder Jake Bullock explained that distribution challenges have slowed the company's growth, but direct-to-consumer sales, which account for 25%-30% of total sales, still offer healthy margins.
As state policies change, Bullock said more SKUs will become readily available, impacting inventory planning and supply chain management.
To create brand awareness, Cann relies on its high-profile investors' platforms and on-the-ground activations. The company plans to organize sampling events in new markets this year.
As more states ease cannabis policies, companies like Cann hope for simpler expansion in the coming years. However, legal compliance remains the industry's biggest growth hurdle, with brands having to consider elections and legalization dates when planning their expansion strategies.
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