NEW YORK, Feb. 06, 2019 (GLOBE NEWSWIRE) -- OTCinsider.com News Commentary –
Cannabidiol (CBD) products have had the biggest buzz in 2019. CBD-infused beverages offer the greatest potential to tap into this trend, with products that offer an entry point to the exploding cannabis market, which appeal to people just learning the benefits of CBD and those who have been diehard users for many years.
Even with the growing demand for cannabis products, Canaccord’s Bobby Burleson and Jonathan DeCourcey project that infused CBD beverages could outpace general demand for marijuana products by two-fold, taking 20% of the existing market for cannabis edibles by 2022. Recent reports indicate that the CBD market is estimated to grow 700% by 2020. Hemp Business Journal, a market intelligence research firm, projects that the CBD market will grow to $2.1 billion by 2020, an astronomical jump from 2017, when the market only had a value of $202 million.
CBD infused beverages has the most growth potential amongst the athletic inclined demographic, as this segment is traditionally one that has dispensable income to spend on CBD products. A majority of this segment is still learning about the benefits of CBD and will take some time to fully incorporate CBD into their existing regimen. There are a few companies that have positioned themselves to become mainstream beverages in the CBD-infused beverage space and based on their recent marketing efforts around the Super Bowl, are poised to gain exposure and credibility for their efforts, which will separate them from their competitors.
Baristas Coffee Company, Inc. (BCCI), a CBD infused coffee brand, had two digital ads that were transmitted onsite during the Super Bowl which featured its bestselling White Coffee (www.trywhitecoffee.com) and its EnrichaRoast CBD Coffee (www.baristas.tv), a blend which uses a proprietary technology that infuses the CBD to the beans after they have been roasted. BCCI also had engagement with their advertising program during the halftime show featuring Maroon 5 and will be utilized again during the Grammy awards this weekend featuring recording artist Megs Mclean. These advertising programs during such mainstream events like the Super Bowl and Grammy’s is indoctrinating CBD and CBD-infused beverages into the national conscious, giving it credibility to be accepted as a regular beverage akin to chai tea or flavored coffee.
American Premium Water Corporation (HIPH), the parent company of LALPINA CBD also had a very visible presence at this year’s Super Bowl, sponsoring the R.Moss by Antar Levar launch party. The event, which was a launch for a tailored menswear collection designed by NFL Hall of Famer Randy Moss, was at the Willis & Walker store, the big and tall brand of NBA All-Star Kevin Willis. HIPH, which began selling its LALPINA CBD product last August, has expanded its distribution to a wide variety of retailers including:
- Fit Food Fresh (https://www.fitfoodfresh.com) in southern Florida along with its fresh prepared food plans
- Come Back Daily (www.comebackdaily.co) in New York, NY.
- Sobe Finest Car wash in Miami Beach, FL (www.sobefinest.com).
- SingleSeed Online Shop https://www.singleseed.com
HIPH has done a good job getting mainstream publicity with its marketing efforts premium branding, which has leveraged the brand’s past as one of the first domestic pH alkaline brands to enter the marketplace in 2013. The Company has also been working with Jack Brewer, CEO of the Brewer Group to get integrating into more sports and entertainment marketing, as they were one of the presenting sponsors of a Snoop Dog performance earlier this year. Mr. Brewer, a 6-year National Football League veteran and CBD proponent, is a brand ambassador for the Company, and has the network of retired athletes that will assist HIPH in educating the public about the benefits of CBD, which has the potential to be an all-natural replacement for opioids, benefiting retired players, whose struggle with opioid addiction has been well documented.
There are other companies in the marketplace attempting to market CBD products, but OTCMarketInsider does not feel that these companies have positioned their brands for long term success. Profile Solutions, Inc. (PSIQ), which is the licensee of Cheech & Chong brand for CBD infused products, is leveraging too heavily on this particular license, which could affect its ability to gain mainstream traction. There is already a misconception in the marketplace that CBD is infused with THC and combined with the association with Cheech and Chong, a brand that has been associated with marijuana for over forty years, it could inhibit PSIQ ability to achieve long-term revenue growth. Sipp Industries, (SIPC) is another CBD infused beverage company that so far has not achieved the revenue growth of its peers, which OTCMarketsInsider believes is partly due to the fact it has not created a compelling marketing program to distinguish itself as a mainstream brand. Its branding utilizing traditional cannabis leaf branding that traditional “pot” brands have adapted over the years, could continue to inhibit SIPC from gaining mainstream prevalence.
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