Sam Adams Maker Ventures Into Cannabis Iced Tea: What's Brewing In This New Venture?

The Boston Beer Company, Inc. SAM, known for brands like Sam Adams and Twisted Tea, entered the cannabis beverage market with a vision of being the world's most innovative beverage company.

In 2022, Boston Beer launched 'Teapot,' featuring cannabis-infused iced tea in response to evolving consumer preferences amid increasing cannabis acceptance in a post-COVID world. Teapot now reigns as Canada's premier cannabis tea brand.

“We saw a unique opportunity as consumer relationships with alcohol evolve, especially in a post-COVID world, where cannabis acceptance is on the rise. This convergence of trends led us to create cannabis-infused beverages,” Paul Weaver, head of cannabis at Boston Beer told Benzinga in an exclusive interview.

“We've become the top cannabis tea in Canada, leading in Quebec, and receiving recognition from consumers and industry awards. Our decision to focus on iced teas comes from our expertise in crafting great-tasting beverages,” Weaver continued.

Marketing Challenges And Distribution Expansion

On the marketing front, building brand awareness and expanding distribution posed typical growing pains. While their brand awareness in Canada was good, expanding into dispensaries and increasing distribution required grassroots efforts, store by store.

Weaver emphasized the importance of expanding distribution, recognizing it as a gradual process while refining their manufacturing capabilities was a pivotal achievement.

Tailored Tea Pairing Strategy

Weaver elaborated on their market positioning, focusing on the concept of pairing different tea varieties with specific cannabis strains. They aimed to address niche markets with tailored products.

Their approach involved creating daytime products like caffeinated black tea with minimal sugar, designed for daytime consumption. In contrast, they recognized the consumer demand for products that help improve sleep and aid relaxation in the evening.

The "good evening" line was developed to cater to this need, offering a mild, non-intimidating evening product, akin to a glass of wine, to help consumers ease into their sleep patterns. This positioning strategy aimed to align their product offerings with specific consumer preferences and occasions.

"Teapot offers a distinctive selection of day and evening iced teas. Our lemon black tea complements Pedro's Sweet Sativa. And our blueberry chamomile iced tea pairs perfectly with Black Sugar Rose, an indica strain. This narrative approach enriches the appeal and distinctiveness of all our tea styles," Weaver explained.

Applying Alcohol Industry Expertise To Cannabis

Weaver, with nearly a decade in the alcohol industry, noted the potential crossover between alcohol and cannabis. He highlighted its applicability in product development and sales execution.

“Product development and the innovative process, including brand development, sensory product testing, and consensus-building, have been highly successful in the beverage alcohol industry,” Weaver said. “This structured product innovation process can be effectively adapted to the cannabis sector, driving product development and brand design.”

Additionally, the sophistication of a well-trained sales force, capable of understanding retailer needs, enhancing shelf placement, increasing basket sizes and maximizing listings is transferable and beneficial in the cannabis dispensary model.

“Their ability to effectively operate within dispensaries, understand retailer needs, enhance shelf placement, boost basket sizes, and maximize product listings is invaluable. These sales fundamentals contribute significantly to distribution and overall success,” Weaver said.

Teapot's Future Growth And Cannabis Rescheduling

Regarding Teapot's plans, Weaver mentioned expanding flavors, market presence and points of distribution. The brand is actively promoting responsible cannabis consumption during holiday gatherings.

While considering additional premium offerings, they are mindful of maintaining accessibility and moderation.

Weaver conveyed a sense of untapped opportunity and considerable room for growth, which adds excitement to the prospects of the cannabis beverage market.

“The cannabis beverage market is still relatively small, but there's substantial growth potential. We have an opportunity to reach existing cannabis consumers who may want to reduce their THC inhalation. We're just scratching the surface.”

Finally, Weaver discussed the potential impact of cannabis rescheduling in the U.S. and how Boston Beer might navigate this change.

He stressed the importance of remaining patient and flexible in response to evolving regulations and market dynamics and hinted at the possibility of exploring non-alcoholic cannabis-infused versions of their established beer brands if regulations permit.

"We maintain a flexible approach, avoiding long-term investments in infrastructure. Rescheduling is significant, potentially benefiting many companies due to tax changes. We'll monitor it and adapt as needed," Weaver concluded.

Photo by Timothy Dykes on Unsplash.