Cannabis Industry Expert Weighs in on Future of THC-Infused Beverages

Legal cannabis sales are expected to reach $35 billion by 2025

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    The cannabis stock sector is booming, with legalization and decriminalization of marijuana in the United States and abroad rapidly expanding. Investors want to know more about the cannabis investment opportunities from industry-leading experts.

    In the ever-evolving legal cannabis market, the future for the industry’s longevity is truly looking bright. According to the U.S. Cannabis Report 2020 – 2021, legal cannabis sales are expected to reach $35 billion by the year 2025. With 2022 right around the corner, the booming industry is welcoming new players that believe in the space with the mission of further destigmatizing the use of marijuana – thus making this prediction even more realistic. 

    Today, we chatted with Matt Melander of LEVIA. Based in Massachusetts, LEVIA is the company behind a top-selling cannabis-infused seltzer in the United States. LEVIA products provide a fast and predictable onset from a choice of sativa, hybrid or indica cannabis. These products are promoted as a consistent experience, and NO hangover and are all made with the finest locally-sourced buds and simple all-natural ingredients.

    Schaeffer's: What is your perspective on the cannabis-infused beverage industry? Is it just taking off, oversaturated, plenty of room for new entrants?

    Matt Melander: When it comes to the beverage sector of the cannabis industry, we’re still in the first or second inning. We’re nearing the end of 2021 and we’re just now starting to get the traction necessary to become a more viable, national business. With that being said, there is plenty of space for new entrants and innovation in the industry. As more participants enter the space, I believe we’ll see more product differentiation. 

    Schaeffer's: What kind of demand are you seeing for THC beverages, medically vs. recreationally?

    Matt Melander: As more and more states open up adult use markets, I believe the demand for infused beverages will only continue to increase. I speak for all of us at LEVIA when I say we’re believers in the fact that the cannabis beverage segment serves as a universal stigma breaker for the cannabis industry as a whole. 

    Schaeffer's: What are you seeing in the state-by-state demand for THC-infused beverage?

    Matt Melander: Many people believe that brands and innovation as it relates to the cannabis market have to originate from California, but LEVIA has proven that’s not the case. As a Massachusetts born and bred cannabis beverage business, LEVIA has risen to the top of the sales charts nationally, while only being available in the Massachusetts market.

    Schaeffer's: From what you have seen, are THC-infused beverages being used for specific purposes/experiences?

    Matt Melander: As trendy as infused beverages have become, the use for these products are as variable as the consumers who enjoy them. Whether it be an alcohol replacement, or for some other personal reason, consumers are finding their way towards this plant-based product. 

    Schaeffer's: With the big guys encroaching on the space now, how do you see that impacting the THC beverage industry overall?

    Matt Melander: A rising tide lifts all ships! When Sam Adams started back in 1984, the craft beer revolution was in its infancy. Now roughly 40 years later, they’re a multibillion-dollar public company. The same realities can be true here for the earliest adopters in the cannabis beverage space. 

    Schaeffer's: Will your brand expand into other areas beyond cannabis-infused beverages? Why or why not?

    Matt Melander: We are actively exploring additional products and form factors that will keep LEVIA on the innovation curve, leading the way for normalization of cannabis use in recreational settings. 

    *This article is published for purely informative purposes. LEVIA's opinions are not necessarily a reflection in any way of those of Schaeffer's Investment Research. We publish information about companies in which we believe our readers may be interested. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalized advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as SIR's solicitation to effect, or attempt to effect, any transaction in a security. Investments in the securities markets, and especially in options and futures, are speculative and involve substantial risk. The information that we provide or that is derived from our website should not be a substitute for advice from an investment professional. We encourage you to obtain personal advice from your professional investment advisor and to make independent investigations before acting on the information that you obtain from SIR or derive from our website.*

     




     
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