Considering the huge boom that cannabidiol (CBD) beverages are having at the moment, the market leader in hemp and CBD, Charlotte’s Web Holdings, has decided to explore the entrance to that market. To achieve this, the company plans to implement new CBD social elixirs that are currently being developed and are expected to be launched later in the year.
“Entering the beverage category is reflective of our increased focus on new product categories and formats to drive our topline growth,” said Jacques Tortoroli, CEO of Charlotte’s Web. “This allows us to enter this fast-growing portion of the market.”
The company’s plans are to introduce sparkling CBD elixirs that will also come with the push for full-spectrum hemp extracts under its own brand and derived from the company’s proprietary hemp cultivars. Canopy Growth knows that competition is extensive in this market but promises to develop beverages with best-in-class formulations. Part of its ingredients will contain functional botanicals and natural flavors in addition to being vegan, gluten-free, dairy-free, and non-GMO.
According to data presented by different analysts, the CBD-infused beverage market was able to reach $245 million in sales in 2021, which is 50% more than what it reached in 2020. If the pace of this growing market continues at this rate, it is possible that estimates for 2026 will be $1.3 billion, representing a CAGR of 40%.
One of the great advantages of this company is that its leadership team has significant experience in the beverage category. A clear example is its new CEO Tortoroli, who, for more than two decades, has been involved in the global beverage market through previous positions at PepsiCo and Pepsi-Cola International. Most recently, he was with Bermuda-based family-owned Bacardi Ltd. To this, Charlotte’s Web CFO and COO Wes Booysen has an additional ten years of experience after serving as CEO and managing director, Asia Pacific and Africa at Molson-Coors.