Introducing Cann the Ultimate Social Tonic: Mild Cannabis Drinks which are an alternative to Beer Without the Hangover - The Redefining Social Buzz: A Journey from Garage Creations to Beverage Revolution

HANGOVER FREE

Are you someone who cares about your health but still wants to enjoy a few drinks with friends at social gatherings occasionally, without the worry of suffering from hangovers that typically follow a night of beer indulgence? Well, your search for an alternative ends here – an antidote to beer without the unpleasant after-effects. Two 36-year-old Stanford graduates embarked on this mission back in 2019 with their pioneering beverage startup, Cann. Packed with two milligrams of tetrahydrocannabinol (THC), the principal psychoactive component found in cannabis that induces a mellow high, they aptly refer to their drink as a "social tonic." Say goodbye to headaches and immerse yourself in a laid-back, one-of-a-kind celebration with this game-changing drink. Picture this: holding a Cann can, unlocking a universe of flavor and tranquility. 

The excitement doesn't end there! Co-founders Bullock and Anderson anticipate sales skyrocketing to over 9 million cans next year. It's not just a drink; it's a lifestyle. But hold on, there's more – Cann isn't just making waves in glasses; it's making financial waves too. A spokesperson confidently informs CNBC Make It that this trajectory is poised to tip Cann into profitability, making every sip not just delightful but economically satisfying. And here's the kicker: starting at just $24, Cann isn't just a drink; it's an affordable indulgence. These sales projections paint a picture of success, with a potential annual revenue of at least $36 million, setting the stage for Cann not just to thrive but to flourish.

From Garage Creations to Social Elevation: Cann's Journey to Craft a Gentle Buzz Without the Hangover

Born in a garage in Palo Alto, the inception of Cann can be traced back to homemade drinks. Traditional cannabis edibles typically pack about 10 milligrams of THC per serving, often advising novices to start small. Anderson is quick to point out that Cann isn't tailored for those seeking an intense high, adding a friendly, "No shade to stoners!"

Rather, the intended audience is social drinkers seeking a gentle buzz from a "bubbly, refreshing" beverage, minus the dreaded hangover linked to alcohol. The idea for Cann sprouted from the co-founders' personal quest to cut back on alcohol. Having connected at consulting giant Bain & Co. in 2014, they bonded over shared experiences as "closeted queer people" at the time. Exploring the Nexus of Alcohol, Cannabis, and Entrepreneurship: Cann's Journey Unveiled After embarking on separate paths to pursue MBAs—Anderson at Harvard University and Bullock at Stanford University—their conversations delved into the complexities of aging, escalating hangovers, and the detrimental impact of alcohol on the body. Originating from Colorado, Bullock drew insightful distinctions between alcohol and cannabis habits, highlighting the potency contrast between a single beer and most cannabis edibles or a few puffs from a joint. This revelation catalyzed the inception of homemade drinks in Bullock's Palo Alto garage in 2018. In the same year, Constellation Brands, renowned for producing Corona and Modelo beers, made a substantial $4 billion investment in the Canadian cannabis company Canopy Growth. Inspired by Bullock's brainchild, Anderson pondered, "Wouldn’t it be cool if that [$4 billion] was us?" Pooling their efforts, the co-founders meticulously tested drinks before dispatching 3,000 cans to a MedMen dispensary in Los Angeles. Remarkably, within four weeks, the dispensary requested an additional 30,000 cans. Despite an initial setback affecting the taste of the first batch, the Cann duo swiftly secured a warehouse and successfully met their delivery deadline. Reflecting on their journey, Anderson notes, "As long as we avoid being stressed out about the big picture, we’ve been very successful at blasting through obstacles one at a time." MedMen's Apple-esque Ambiance: A Welcoming Haven for Cannabis Newcomers MedMen stores, designed with an Apple store resemblance, aim to create a welcoming atmosphere for those new to the cannabis world. However, this appeal falters in most other dispensaries, presenting a challenge for Cann to reach its ideal audience. Navigating Sales Slumps: Cann's Hard-Learned Lessons The duo learned a tough lesson when their focus shifted from their initial location to expanding to 80 dispensaries across California. Monthly sales plummeted from around $80,000 to a mere $20,000. In a desperate move, they dedicated extensive hours in those dispensaries, striving to market their products to occasional customers who accidentally wandered in. “It was like selling meat in a vegan grocery store,” Anderson adds. “[But] we didn’t have anywhere else we could sell it. So that was really our only choice.”
Trying to Beat the Alcohol Industry with a Fresh Approach In a surprising turn of events, Anderson reveals that their unconventional marketing strategy paid off. The word-of-mouth tactic reached influential customers who enthusiastically shared their experiences with Cann on social media. The co-founders adopted a humorous advertising plan, urging people to "give up the booze, not the buzz."
Venturing into uncharted territory, Cann takes on the alcohol industry with an innovative game plan. Anderson's revelation is a testament to the success of their unconventional marketing tactics, as word-of-mouth endorsements from notable figures found resonance on social media. Strategic Growth Beyond Cannabis Dispensaries Bullock and Anderson harbor aspirations beyond the familiar landscape of cannabis dispensaries in the 24 legalized states. Their vision extends to broader markets, including the realm of liquor stores. Notable regulatory shifts, as witnessed in Minnesota, hint at new possibilities. The state's recent regulations permit the sale of drinks and food infused with a touch of THC, provided it originates from hemp plants. This regulatory trend, if emulated by more states, could potentially catapult Cann into thousands of new retail locations. Bold Projections and Investor Confidence With an optimistic outlook, Bullock envisions Cann capturing half the market share of the beer industry within five years, contingent on successful expansion efforts. Investor confidence aligns with this vision, evident in the substantial $32 million funding secured from entities like Imaginary Ventures, recognized for backing prominent brands such as Skims and Glossier. Celebrity endorsements from Gwyneth Paltrow, Baron Davis, and Rosario Dawson further underscore the collective belief in Cann's potential. Navigating Challenges Against Beer Giants The formidable beer industry, a juggernaut with a $100 billion annual stronghold in the U.S., poses a significant challenge for Cann. Even within the more comparable hard seltzer market, boasting a $9 billion annual turnover, success is hard-won. Notable examples, like the top-selling brand High Noon, which moved an impressive 16 million cases (equivalent to approximately 64 million cans) last year, illustrate the scale of competition. Anticipating a Cultural Shift in Alcohol Consumption Facing these challenges, Bullock speculates on an evolving perspective among the younger demographic. According to him, some envision a future where people regard alcohol "the way we look at smoking today" in the next 20 years. This potential shift in cultural attitudes opens a gateway of opportunities for cannabis drinks, presenting the prospect of a substantial market evolution. As Bullock asserts, "It could be very big," hinting at Cann's potential to reshape the landscape of the beverage industry.