Cannabis-infused beverages will be the next new trend and are predicted to have explosive growth. The brands that will succeed will be those that are ready to hit the ground running.
Like any other category of consumer products, the adult beverage industry is driven by trends. One can see the hype start and then diminish with products like wine coolers, light beer, low carb, and low sugar options, flavored hard liquor, craft beer, and more recently, hard seltzer beverages.
What seems to be emerging as the next "hot" adult beverage is cannabis-infused drinks. These beverages have been drawing in new consumers since they offer an alternative to those curious about cannabis but not interested in smoking. They are also a new option for those wanting to avoid alcohol but still want the effects.
This emerging market presents a tremendous opportunity for cannabis-infused beverage brands. Of course, there will be many challenges, including legal, manufacturing, packaging, and shipping. However, at this point, the one business concern to address and develop is strong brand identity.
The U.S. cannabis market is currently a geographically mixed bag with various levels and types of legalization. However, the differences are getting smaller. An increasing number of states are online with legalized cannabis, which means that cannabis brands can grow from just regional brands.
The emergence of cannabis-infused beverages is also closing the gap between cannabis products and alcoholic beverages. Popular beer brands are now starting to enter this market under different names. Many of these new brands have fun names, hoping to catch and engage the consumers. The brand will also develop loyalty and a following by grabbing the consumer's attention early.
TThe U.S. federal government does not legally recognize cannabis, so it must be diligent with potential brand misuse. Brands should look at all possible angles with their name and logo before going ahead with advertising campaigns or anything else to avoid potentially costly fines and lawsuits.
A U.S. trademark registration has unique challenges but is immensely invaluable and advantageous to a brand because it provides the trademark owner a nationwide view of ownership and validates the trademark. The U.S. Trademark Office denies brand protection to those violating its "lawful use" rule, which covers marijuana and food, beverages or medicines containing CBD.
The federal government regulates cannabis like any other controlled substance. This means that if a brand covers products containing THC, it will violate the Controlled Substances Act (CSA). However, with respect to brands and trademarks covering CBD or hemp-based items, which have been granted an exception under Farm Bill Section 7606(e) for "intellectual property rights relating exclusively to producing", selling, using, etc. goods claiming no more than 0.3% THC concentration on dry weight basis – these may continue without fear since such mark doesn't violate either Food Drug Cosmetic Act or CSA.
While it may seem like bad news for cannabis-infused beverages, all is not lost. The U.S. Trademark Office will likely reject the trademark if they find that the name or logo has been associated with drugs before, even if it hasn't been applied for. However, an applicant can still use their trademark on clothing without issues because they don't carry legal obligations under the law.
It is not uncommon for cannabis companies to offer other products under their brands, including those that may be secondary or even federally illegal. This leads business owners to register trademarks on these products to protect their brand or similarly named brand from being used by others. Some cannabis companies produce products like beverages under the same brand name but without any amount of cannabis. Other products may even be online forums and blogs but still require protection against any possible brand and trademark ownership disputes.
Cannabis-infused beverages will be the next new trend and are predicted to have explosive growth. The brands that will succeed will be those that are ready to hit the ground running.
