The popularity of infused foods and drinks is exploding across the country. The beverage category alone is projected to balloon from a value of $3 billion in 2024 to $117 billion by 2032. With increased demand comes increased supply, and the market is quickly becoming saturated—brands must secure wider visibility and distribution to succeed. How are the big hemp deals getting done?
Popular floral and sweets delivery company Edible Arrangements made national headlines when it announced it was getting into the hemp game. The launch of D2C marketplace Edibles.com came soon after. It also left brands wondering what to do to secure a monster retail placement like that. After all, prosperity in the market takes more than creating a tasty product with attractive branding.
RELATED: The art (and science) of building an unforgettable cannabis brand
Thomas Winstanley, executive vice president and general manager of Edibles.com told GreenState his company had very specific metrics in mind when it came time to curate the catalog.
“Our approach to selecting partner brands centers on three core criteria: product quality, regulatory compliance, and portfolio diversity,” Winstanley said.
Makes sense. Consumers seek out brands that they can trust and that offer what they desire. But as it turns out, the second piece of the trifecta may be among the most crucial.
Compliance: the secret sauce to big hemp deals
In the cannabis sector, compliance truly is the name of the game. The industry is heavily regulated, with rules changing from state to state (and frankly, day to day). Big names like Edible Arrangements and Total Wine are looking for trusted partners that follow the letter of the law to a T—and can pivot when things shift.
Stephanie Daley, vice president of supply chain and operations at Wana Brands, believes the company’s demonstrated regulatory expertise helped secure a spot on the Edibles.com platform.
“We invest significant time and resources into monitoring legislative and regulatory changes across the dozen-plus states where our hemp-derived THC products are sold, ensuring we remain compliant in this rapidly evolving space,” Daley told GreenState.
RELATED: Former foe advocates for major changes in cannabis
Adam Terry, CEO and co-founder of Cantrip, also landed a coveted deal with Edibles.com. He shared Daley’s sentiments that compliance played a key role.
“Cantrip was picked not only for its love by consumers but also for its high level of attention to quality and compliance, manufacturing consistent products to the highest standards at a GMP and SQF certified facility, and testing for both potency and a wide range of contaminants,” Terry explained via email.
The other key component
While regulatory excellence and producing great products are clearly the key ingredients to landing mainstream deals, scalability is also crucial.
“As we set out to build a national marketplace, it was essential to align with brands that could grow with us,” Winstanley noted.
Having national distribution means sales could spike, and retailers simply cannot be left high and dry. Companies need a secure supply chain to achieve economies of scale—and swiftly make changes should the regulations shift.
RELATED: Cannabis consumers say only one thing matters when shopping at dispensaries
Getting to that level may seem like an impossible feat for small businesses. According to Terry, companies need to be lean and mean when they start out in order to develop an effective formula that’s cost-effective while scaling up at a reasonable pace.
“If you’re a small brand just starting out, make sure you know your costs from ingredients to freight, and don’t go national immediately,” Terry advised. “Focus on owning your home market and going deep in the marketplace.”
Once demand is proven locally, brands can then start to scale. However, it may require investment, which can be tricky to obtain.
“Hemp THC beverages are, first and foremost, beverages, and scaling a beverage program is never easy and always expensive,” he added.
Put me in, coach
Seeing products on the shelves of a major retailer is the dream of many brand founders, but it takes hard work and grit to get there. In the cannabis space, it also takes a lot of blood, sweat, and tears. But by focusing on efficiency and compliance early on, companies can set themselves up for success in a big way—and before they know it, the big leagues may be calling them up.
