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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
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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
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
6All Rights Reserved | ©2020 BDSA
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
7All Rights Reserved | ©2020 BDSA
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
8All Rights Reserved | ©2020 BDSA
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
9All Rights Reserved | ©2020 BDSA
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
10All Rights Reserved | ©2020 BDSA
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
12All Rights Reserved | ©2020 BDSA
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
13All Rights Reserved | ©2020 BDSA
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
14All Rights Reserved | ©2020 BDSA
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)
16All Rights Reserved | ©2020 BDSA16
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
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AND US GENERAL MARKET HEMP/CBD BEVERAGES ARE JUST GETTING
STARTED
18All Rights Reserved | ©2020 BDSA
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
19All Rights Reserved | ©2020 BDSA
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
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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
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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
23All Rights Reserved | ©2020 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
24All Rights Reserved | ©2020 BDSA
NOW FOR OUR SPECIAL GUESTS…
Luke AndersonCann
Co-founder
Jeremy Marshall
LagunitasBrewmaster
Lori HatcherTruss Beverages
Head of Marketing
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