Cann enters Canada’s Cannabis beverage market with $27 million funding

Changing consumer interest and rising inclination towards THC-infused food and beverage products for their therapeutic properties has led to a spree of experimentation by manufacturers developing innovative drinks and food products.

Cannabis beverage startup, Cann has introduced a new realm of social drinking after launching its “social tonic” microdosed with Cannabis, advertising it as an amusing alternative to alcohol.

The THC beverage company has reportedly nabbed a $27 million worth funding in Series A round following the $5 million seed round closed by the company in 2020.

The latest funding round consisted of few new anonymous investors along with existing investor Imaginary Venture and a mob of celebrity influencers like Zoey Deutch, Nina Dobrev, Rosario Dawson, Adam Devine, and others.

Cann’s key specialty lies in low-THC drinks which allow consumers to chug down a few 8-ounce cans – standard offering – and still not get super stoned from the 2mg THC and 4mg CBD infused drinks.

At present, Cann’s social tonic is overpriced and unlikely to sustain in the well-established market serving beer buffs and spike seltzer drinkers.

Cann’s 6-pack of the 8-ounce Cannabis beverages is worth $20 in the Californian market, however, it is considerably expensive when Cannabis associated taxes are applied.

The THC beverage maker has developed a spectrum of innovative products such as the THC-infused syrups, which consumers can use as an ingredient to mix with a tonic or to make Cannabis cocktails.

Surprisingly, the company is somehow managing to sell 12-packs of 8-ounce Cannabis-free tonic waters for $25, reflecting upon the beverage producer’s efforts to ensure it taps into every space of THC drink and increasing the probability of at least one appealing the consumers.

Cann’s expansion plans are currently restricted by the broader Cannabis regulations controlling stringently the markets it can move into.

As of now, Cann sells its social tonic in Massachusetts, Nevada, California, Rhode Island, and Illinois, now expanding into Canada as it aims for the Ontario market.

Source Credit: https://techcrunch.com/2022/02/15/Cannabis-beverage-startup-cann-raises-27m-as-it-expands-to-canada/